We work with technology manufacturers and distributors to sponsor flexible working capital and extended-term financing programs for their value-added reseller customers.
Through our Channel Finance programs, manufacturers and distributors may:
- Reduce credit exposure and shift risk off their balance sheets
- Provide growth capital to value-added resellers without increased credit risk
- Outsource credit administration and receivables collection and management
Our Channel Finance programs offer value-added resellers additional benefits. Through our programs, value-added resellers may:
- Obtain greater purchasing power with a larger credit facility
- Achieve greater liquidity with longer-term financing
- Reduce costs with interest-free financing
How Channel Finance works
With a sales finance program, your company enters into a contract with Wells Fargo Capital Finance to sell receivables related to business you do with investment-grade or near-investment-grade buyers (key accounts purchase), or risk-pooled receivables portfolios (portfolio purchase).
Large corporations that sell to domestic and international buyers (key accounts purchase) or risk-pooled receivables portfolios (portfolio purchase) may:
- Tap a new source of liquidity without incurring debt
- Reduce concentrations with current customers
- Offer extended terms to customers without affecting days sales outstanding
- Diversify capital sources with an off-balance sheet option
How Sales Finance works
Supplier Finance addresses the needs of large corporations with wide supplier networks.
Through the program, buyers can either negotiate extended payment terms or a cost of goods sold reduction in return for giving suppliers access to lower-cost financing. We provide suppliers with a discounted early payment at an improved rate based on the buyer’s creditworthiness.
Potential benefits for buyers include:
- Reduce cost of goods sold
- Increase days payables outstanding
- Gain cash flow certainty
- Strengthen financial supply chain
- Improve relationships with suppliers
- Reduce supply chain financing costs
Potential benefits for suppliers include:
- Gain access to an attractive liquidity management tool through the early payment option
- Improve cash flow and days sales outstanding
- Reduce capital costs (such as accounts receivable carrying costs)
- Receive information and payment in a format that best suits your needs
How Supplier Finance works