WCM solutions

You can use these solutions to optimize your working capital management

With factoring, reverse factoring and dynamic discounting, PostFinance offers three solutions that allow you to optimize payment deadlines and maintain targeted control of liquidity.

Factoring – optimization of customer cash flows

Factoring enables you to benefit from your customers’ good credit standing and to secure liquidity inexpensively. Here’s how factoring works: your company transfers the customer receivables to PostFinance. PostFinance in turn settles the outgoing invoice within a few days and handles, if required, the collection of customer payments according to the terms agreed with your company. PostFinance also assumes the default risk of your customers on request.

The graphic illustrates the factoring process described above.

Reverse factoring – optimization of supplier cash flows

Reverse factoring aims to optimize supplier cash flows. With reverse factoring, PostFinance takes over your company’s payables to suppliers and guarantees their settlement on time. This allows your company to optimize the financing of purchases while also benefiting from longer payment terms.

The graphic illustrates the reverse factoring process described above.

Dynamic discounting

Dynamic discounting enables your company to use surplus liquidity to make early payment to suppliers. Once the invoice has been approved, the suppliers can flexibly determine when they wish to receive payment of your invoices using an online tool.

In return, they accept a slight reduction on the invoice amount. This means your supplier can selectively obtain liquidity more quickly and less expensively and your company benefits from greater discounts. This flexibility strengthens the relationship with suppliers as they receive the invoice amount sooner with dynamic discounting. PostFinance processes the payment transactions involved and provides (additional) liquidity if required.

The graphic illustrates the dynamic discounting process described above.

The benefits of supply chain finance for your company

Factoring and reverse factoring allow companies to enjoy the following benefits:

  • Flexible optimization of liquidity
  • Reduction of finance charges (often less expensive than traditional forms of finance)
  • Increase in internal financing capacity
  • Reduction of the risk of default on payment
  • Increase in the predictability of cash flows
  • Improvement of key financial figures
  • Stability or even reduction of debt
  • Special benefit of factoring: increase in customer satisfaction as payment deadlines remain the same
  • Special benefit of reverse factoring: strong supplier relationships

Dynamic discounting provides you with the following opportunities:

  • Lower purchasing costs through increased discounting
  • Optimization of liquidity through the use of surplus liquidity
  • Strong supplier relationships

Why choose supply chain finance with PostFinance?

  • PostFinance’s WCM experts support you with their in-depth expertise in the analysis, design and implementation of a customized solution.
  • PostFinance offers very favourable financing terms thanks to the excellent creditworthiness of Swiss Post and an independent selection of the most inexpensive risk takers.
  • The instruments can be adapted if required. Options include, for example, open or silent factoring and non-recourse or recourse factoring, submission of invoices via an automated interface or via e-mail and invoicing and payment collection by your company or PostFinance.

PostFinance’s supply chain finance instruments are effective from an average financing volume of CHF 1.5 million. Accordingly, solutions are tailored to larger companies with an annual turnover of at least CHF 20 million.

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