Vendor Managed Inventory Finance
“Helping to Strengthen Supplier Deliver Capabilities to Large Companies…”
BFG, Inc. has partnered with Hitachi Capital America Corp. (HCA) to provide financing programs tailored to help strengthen supplier capabilities to large companies by allowing them to sell more products, to better meet customer needs and increased profitability. Vendor Managed Inventory Finance (VMIF) funding programs enable retailers to improve cash flow by allowing vendors to finance their inventories electronically.
How it Works
Retailers benefit from VMIF because it enables “Pay-On-Scan” payment for their vendors, which moves inventory off their balance sheet. Under ”Pay-On-Scan”, the vendor retains inventory until the consumer buys it (scanned at register), at which time a payment to the vendor is triggered. This eliminates the retailer’s payables and inventory, thus greatly improving DPO and inventory turns.
HCA pulls pull stocking data from the retailer’s system
- APR: 4% to 10% on monthly volums of $10M to $25M+
- Advance: Up to 90%
The challenge has been the vendor’s inability to finance inventory sitting on their customer’s shelves. VMIF is a way to solve this challenge. Under VMIF, stocking data from the retailer’s system is used to predict probability and timing of payment, enabling HCA to provide financing for these transactions through the purchase of a future payment flow. HCA also has the financial capability to directly own inventory through its logistics arm, or on the company’s balance sheet .
Contact William C. Coleman, Jr, Senior Advisor at BFG, Inc. on how to initiate this extraordinary program!
William.Coleman@BFGincorporated.com or 888-242-6488
