Over the last four years, GapCap has been striving to solve the common problem of cash flow that is experienced by thousands of SMEs. We started out in 2014 as an invoice financier, with the aim to give small businesses the control and freedom of when they pay their suppliers and when they receive payment from outstanding invoices.

Over the years, GapCap has gone from strength to strength, helping more and more SMEs looking for alternative financing options over traditional banks. Today we offer a range of cash flow solutions that are all designed to help entrepreneurial and growing businesses. The latest addition to our portfolio of cash flow solutions is supplier finance, which is designed to offer complete flexibility and improved cash flow.

The arrival of supplier finance at GapCap

Every business is dependent on the relations throughout its supply chain, and in order to maintain healthy supplier relationships, it is essential to offer prompt payment. If a business is experiencing cash flow difficulties, it can make paying suppliers promptly a struggle and in turn be detrimental to the relationship. This is where supplier finance comes into play.

At GapCap, we understand the importance of a healthy supply chain for a business and in recent times have seen a gap in the market for this kind of finance. Even big name brands are turning to supplier finance to manage their cash flow, with companies such as Peacocks making the most of reverse factoring solutions to secure early payments of invoices.

Furthermore, global finance companies are struggling to compete with the overwhelming benefits of using innovative fintech businesses who offer supplier finance, with PWC stating that 88% of major global finance companies have expressed concerns about losing revenue to fintech innovators.

With many existing supplier finance lenders leaving the market in recent times, there has been a growing need for new lenders to offer the finance solution to businesses. At GapCap we have added supplier finance to our portfolio of financial products, as just another way for SMEs to make their cash flow easier.

So, what exactly is supplier finance?

In simple terms, supplier finance means that a lender will pay suppliers on behalf of a business, as soon as the invoice has been approved. That business can then repay the lender using the agreed repayment terms.

Supplier finance offers SME businesses a happy supplier ecosystem, accelerated cash flowand full flexibility over their invoices. At GapCap, we can combine supplier finance with our existing invoice financing solutions to create a match made in heaven for businesses wanting to accelerate their growth and make sure that cash flow is never an issue.

Businesses of all sizes can benefit from supplier finance, with the key benefits being:

  • Flexible finances: At GapCap, we understand that every single business is unique, and we work closely with companies to create the ideal payment terms. When you choose supplier finance, you will get complete flexibility over which suppliers will use the facility and which will not. We give you the control to turn your supplier financing on and off as you please and add and remove suppliers freely.
  • Improved cash flow: Supplier finance is beneficial to both your own and your suppliers cashflow. With GapCap, your suppliers can receive payment within 24 hours of you approving the invoice. Your business will benefit by utilising our longer payment terms.
  • Happy suppliers: As a business, your supply chain is vital to your business, and it is crucial that you keep suppliers happy through prompt payments. Supplier finance can help you to grow your supplier relationships and ultimately create better deals.

Supplier finance will differ slightly between providers, as every provider will have their ownrequirements for eligibility. At GapCap, our three requirements for supplier finance are that the business must:

  • Have been running for more than two years
  • Be a UK limited company
  • Have a minimum turnover of £1 million

Our aim here at GapCap is to become the market leader in alternative lending solutions for businesses and pride ourselves on our current portfolio of products. If your business is struggling with cash flow or could benefit from supplier finance, and meets our criteria, then get in touch today.