Supply Chain Finance for FMCG
Supply Chain Finance for FMCG Companies
FMCG companies often operate with tight margins and high working capital needs. Delays in customer payments and pressure from suppliers for early settlement can create a mismatch. Supply chain finance (SCF) helps resolve this by allowing suppliers to get paid early through third-party funding while buyers extend their own payment terms. Financely designs SCF programs for businesses in fast-moving sectors that rely on predictable product movement and consistent vendor delivery.
Why SCF Is Common in FMCG
In this segment, liquidity tends to move slowly while production costs remain constant. Retail chains typically offer slow remittance schedules, while raw material and packaging suppliers often seek upfront or early-stage payments. SCF closes the gap:
- Retailers often pay in 45–90 days
- Suppliers prefer payment within 15–30 days
- Companies face cash drag during production and logistics
Basic SCF Mechanics
The buyer approves an invoice from the supplier. A funder (bank, fintech, or trade finance fund) pays the supplier early at a small discount. The buyer settles the full invoice value later, typically at an extended due date.
| Step | Action | Typical Timing |
|---|---|---|
| 1 | Supplier ships goods and issues invoice | Day 0 |
| 2 | Buyer confirms invoice | Day 3–7 |
| 3 | Funder pays supplier early | Day 5–10 |
| 4 | Buyer repays funder at maturity | Day 60–90 |
Where It Applies
- Procurement of packaging and ingredients
- Seasonal inventory build-up
- New product launches requiring volume prep
- Support for informal or rural suppliers
What Financely Does
Financely structures SCF arrangements based on actual transaction volume and vendor profile. We match you with funders who can work within your operational and geographic context, without requiring a full platform overhaul or new ERP.
- Review supplier payment cycles and volume
- Define which vendors qualify for early payment
- Present structure to trade-focused lenders
- Handle negotiation, onboarding, and execution
Common SCF Structures
| Type | Best For | Funding Range | Repayment Window |
|---|---|---|---|
| Reverse Factoring | Tier 1 suppliers | USD 2M–100M | 30–180 days |
| Dynamic Discounting | Mid-size vendors | USD 1M–25M | 15–90 days |
| PO-Based Finance | Advance payment to producers | USD 500K–20M | 30–90 days |
Why Work with Financely
- We focus on companies with physical goods turnover and regular vendor activity
- We work with funders who issue real capital—not term sheets without follow-through
- We offer hands-on support during negotiation and legal review
- We deliver structures built around actual cash flow, not platform demos
If you’re looking to extend payment terms, improve supplier retention, or reduce cash stress during your operating cycle—supply chain finance may be a fit. Financely sets up SCF programs for FMCG companies with real trade flows and verified vendor obligations.
Start Your SCF MandateFinancely arranges SCF structures for mid-sized and large FMCG companies with monthly volumes above USD 1 million. Final approval depends on credit strength, vendor structure, and jurisdiction.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
Trade Finance
Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.
Submit a RequestProject Finance
Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
Submit a RequestAcquisitions
Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.
Submit a RequestFor Banks
Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.
Submit a RequestOnce we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.
Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.
