Supply Chain Finance

Supply chain finance is a vehicle for removing cost from the supply chain for both buyers and sellers.

With a supply chain financing plan in place, a supplier ships goods and invoices the buyer. The buyer submits approved invoices to the bank, which pays the supplier quickly at a small discount. The buyer then repays the bank over a set period of time. In effect: Suppliers get paid earlier than they normally would and buyers can hang onto their cash for a longer time, which allows both to put their cash to work more efficiently.

Backed by the resources of one of the largest and soundest financial holding companies in the US and with a deep expertise in several industry segments, BB&T professionals are able to customize programs for clients who are engaged in a broad array of fields, from the automotive aftermarket to retail department stores.

BB&T’s supply chain finance programs help suppliers:

  • Turn receivables into cash more quickly.
  • Use a large buyer’s strong credit rating to receive lower discount rates, since the borrowing cost is set according to the buyer’s credit profile.
  • Ease the concentrated slow payment or non-payment risk that a supplier might face if a buyer represents a large portion of sales.
  • Reduce overall borrowing needs, since receivables are cleared faster.
  • Generate the possibilities of increased sales.

Buyers find several advantages as well, since the programs:

  • Improve cashflow.
  • Free operating cash for strategic purposes, such as acquisitions or stock buy-backs.
  • Improve payment terms from suppliers, since they are promised quick cash.
  • Reward key suppliers and create access to new suppliers or regions.

Our corporate bankers have access to many tools to customize supply chain solutions for clients, including import/export solutions, multiple lending programs and customized software.

 

With more than $185 billion in assets, BB&T Corp. is one of the largest financial holding companies in the nation