Consumer and retail
Their terms are not negotiable. Your cash cycle can be.
Large retailers pay in 90 or 120 days and will not move, because they do not have to. Financing the invoice means you can keep the account without funding it yourself.
Private label, branded consumer goods, homeware, apparel and general merchandise.
Why it fits
The best account you have is also the hardest to fund.
Winning a national retailer is the order that changes the business, and the terms that come with it are the ones that strain it hardest. Volume commitments are firm, terms are long, and the counterparty has no reason to negotiate either.
So the account you most want is the one that ties up the most working capital, and turning down the next season's programme because the last one is still unpaid is a genuinely bad outcome for you and for them.
The upside of this sector is the credit quality. A large retailer is usually a much stronger credit than the supplier invoicing it, and invoice finance prices on the buyer's ability to pay. The thing making your cash cycle difficult is the same thing making the invoice fundable.
- Priced on the retailer's credit standing, not yours
- Keep the account and take the next programme
- Funding that scales with a seasonal order book
Documents
What retail supply paperwork adds.
Retail buyers run structured intake processes, which is good news: the documentation is consistent. The complications are deductions and delivery windows.
- 01 Purchase order and any call-off
- Retail programmes usually run on a framework plus call-offs. We need the call-off matching the invoice, not just the framework.
- 02 Proof of delivery or receipt
- Retail buyers often confirm receipt into a distribution centre. That confirmation, rather than the bill of lading alone, is frequently what starts their payment clock.
- 03 Chargebacks and deductions
- Compliance deductions, short-ship penalties and marketing allowances reduce what is actually paid. Tell us your historic deduction rate. It changes the advance rate, and it is better priced than discovered.
- 04 Delivery window compliance
- Late or early delivery against a booked window can trigger a deduction or a refusal. The receivable is only as solid as the delivery that created it.
- 05 Barcode, labelling and packaging specs
- Where non-compliance gives the buyer grounds to deduct or reject. Certificates and approvals for these are worth sending with the invoice.
- 06 Consolidated invoicing
- One invoice covering many stores or several POs is normal and fundable. It needs a schedule that reconciles to the total, or it cannot be checked.
Questions
What retail suppliers ask.
Our retailer deducts chargebacks from almost every invoice. Can you still fund it?
Yes, and this is the key thing to get right in this sector. We look at your historic deduction rate and set the advance rate so the deductions sit inside the unfunded portion. Share the real numbers, because an optimistic figure just causes a shortfall later.
Will our retailer find out and object?
In most receivables arrangements there is nothing for them to sign and no change to how they pay. Some structures do involve notification or redirected payment, and we will be explicit about which one applies before you sign.
Our volume is highly seasonal. Does a facility still make sense?
Yes, and it suits this product better than a fixed facility. You draw against the invoices you have, so a quiet quarter costs you nothing and a peak season is not capped by a limit set in January.
Can you fund invoices to several retailers at once?
Yes, and a spread of retail buyers is a better book than one. Each buyer is assessed and limited separately.
What about returns after the invoice is funded?
Returns and credit notes reduce the receivable, so they are treated like deductions: absorbed in the unfunded portion where the pattern is known, or reconciled at settlement.
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Start small
Send us one retailer invoice.
One invoice, the retailer's name, and your typical deduction rate. We will tell you what we could advance and what it would cost.
- An indicative answer, usually the same day
- An advance rate that accounts for deductions honestly
- No cost and no obligation to draw