GREY:TSTIF - Post by User
Post by
TNTHOMon Dec 25, 2016 9:22am
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Post# 25643107
Look up "reverse factoring"...
Look up "reverse factoring"...Look up supply chain financing or reverse factoring in Wikipedia (good explanation) only 3% of the entire factoring industry is "reverse" only done when large ordering companies (Getinge) want to help,protect and strengthen small suppliers (Tos3) these deals are completely initiated by the large ordering entity and it absolutely shows how committed Getinge is in ensuring the success of Tos3. This deal offers Tos3 instant money on whatever invoice they would like at a fianance rate they could never get using any other vehicle at their disposal. As well they are not liable for this payment should the ordering company fail to pay the bank in the allotted terms . What Getinge gets is a type of bridge financing of their invoices that will extend their terms out to even 180 days if necessary to help offset the high cost of introducing new product, at no cost to Tos3. Large pharmaceutical companies use this sometimes to develop drugs using small labs etc....so, please enjoy your Christmas as I'm pretty sure RR is as all this is very good news.