When exporting goods to buyers overseas, suppliers typically wait 30 - 120 days for payment. Such ‘deferred payment’ is normal in international trade but it ties up capital and can have a crippling effect on cash flow and business growth.
Invoice financing (also known as ‘invoice factoring’) provides the exporter with immediate payment of that debt – by transferring money to the supplier as soon as the goods are shipped and collecting money later from the buyer. In this way, the supplier gets the cash without delay and is protected against non-payment.
Read more about invoice financing here.
Stenn offers ‘reverse factoring’ to assist buyers. In this scenario, a buyer can ask a supplier to apply for financing on a transaction they are negotiating. This will mean that the supplier is paid when goods are shipped on an invoice which the buyer will not have to settle until, perhaps, 90, 120 or even 180 days later.
There are several possible advantages for the buyer in this:
In each of these scenarios, reverse factoring eases cash flow for both parties, eliminates the risk of non-payment and enables new trade deals to be approached with confidence in competitive international markets.
Find out more in this video from Stenn’s Global Head of Credit.
Stenn’s online invoice financing is much faster than a bank (assessment is quick and funds are paid within 48 hours of only two documents being signed) and is better than a loan (it has no influence on credit history, needs no collateral, and requires no lengthy applications and interviews).
Higher funding limitsIt also offers a much higher limit than bank credit typically would - up to $10 million (USD) per buyer - and covers you against the risk of your buyer failing to pay your invoice.
Provides huge leverageIt can also give smaller companies tremendous leverage. For example, a company with assets of only $50 000 (USD) could finance a shipment of goods worth $500 000 (USD) if the buyer fits the criteria.
It will provide funding where banks often won’tFinally, Stenn specializes in financing cross-border trade. Very often banks do not finance international deals because they don’t work in jurisdictions other than their home countries.
Read more about invoice financing here.
Buyers/importers seeking to finance turnover must demonstrate good credit standing through profitability, positive equity and a reasonable balance. They will need to meet criteria based on the following two scenarios:
We cannot support companies that have filed for insolvency in the past two years, nor companies in a sole proprietorship.
Stenn can finance invoices for a wide range of consumer or professional goods, such as apparel, automotive parts, electronics, finished goods, food products and ingredients, machinery, equipment, metals, packaging, etc. We can also finance professional services such as software development and consultancy.
Stenn cannot finance invoices connected with oil, gas or coal; conflict minerals; sanctioned goods; weapons and firearms; precious metals.
Your supplier will be an exporter in a country free of sanctions, cannot be one of your affiliated companies or have been forced into bankruptcy.
Invoice financing combines cash-flow control and risk control into one simple package. Credit insurance, meanwhile, is limited only to payment protection in the event of buyer default or bankruptcy.
With credit insurance, if the buyer defaults the supplier may wait months to receive funds and the claim process is often paperwork-intensive. With Stenn’s non-recourse factoring, there is no risk and no time-consuming claim to make in the event of a buyer defaulting. The Stenn platform provides non-payment protection for the supplier and takes the risk.
Finally, Stenn allows suppliers to finance only a single invoice if they wish to. Credit insurance will often require them to cover an entire ledger.
Find out more in this video from our founder.
Stenn is a London-based FinTech that delivers rapid finance to SMEs in global supply chains.
Its high-tech platform processes onboarding, compliance (Know Your Client/Anti-Money Laundering) and risk management in one portal and can unlock working capital within 48 hours. This combination of advanced technology and commercial experience means that Stenn can provide cross-border funding solutions in transactions that banks may refuse.
Stenn specializes in supporting SMEs in 74 countries, has financed over $10 Billion (USD) since 2015 and is backed by financial giants like HSBC, Barclays, Natixis, Goldman Sachs and many others.
Find out more in this video from our founder.
In those instances when we are required to utilise trade credit insurance, we charge a fee of 0.32% applied to the face value of each invoice regardless of payment terms (so charges are the same for 30-day invoices as they would be with 90-day invoices). There are no other hidden charges.
Find out more in this video from Stenn’s founder.
Stenn will finance international invoices for both ‘services’ and ‘goods’.
‘Services’ includes industries such as software development and consulting.
‘Goods’ includes most industries dealing in consumer goods, such as:
Stenn will not finance invoices connected with the following industries: oil, gas or coal; conflict minerals; sanctioned goods; weapons and firearms; precious metals.
If you are not sure whether an industry is acceptable for our services, please contact our sales managers for more details or watch the videos below.
Find out more about sellers/exporters in this video from Stenn’s Global Head of Credit.
Find out more about buyers/importers in this video from Stenn’s Global Head of Credit.
Only two documents will need a signature – an Agreement with Stenn’s Financing Platform with the supplier and a Notice of Assignment with you, the buyer.
When applying for finance, suppliers submit the invoice and shipping document(s) (e.g. Bill of Lading, Air waybill, CMR documents, Packing List) together with the Purchase Order. We will then assess the application and, if accepted, will issue the two documents for signature.
No, Stenn's digital platform is fully automated and completely online. You apply online, sign documents online and are paid by bank transfer.
We use DocuSign for signing documents.