Accelerating Growth for Manufacturers and Distributors

|Mar 22, 2021
Blog

In today’s changing market, ensuring the stability of the supply chain can sometimes feel like a moving target. Throughout the channel, we see that demand ebbs and flows faster than ever before, customers expect to receive products quickly, and cash preservation remains top of mind.

One solution to address today’s evolving supply chain expectations is financing directly through the manufacturer, also known as inbound financing. With inbound financing, manufacturers can better support their distributors’ unique needs. Whether a distributor is looking to quickly acquire more product, keep a more robust inventory, take advantage of flexible, extended payment terms or better manage cash flow, inbound financing offers manufacturers a competitive advantage by helping move more products through the channel and ensuring timely payments.

Inbound financing
Inbound financing is custom tailored to address a business’s unique goals, challenges and needs."

By using an inbound financing solution, the manufacturer invoices the financing company once the distributor orders product. The manufacturer is able to ship the product immediately and keep their cash flow protected, as they are then paid by the financing company. After the distributor receives the product, they then repay the financing company according to the extended terms set by that financing company and the manufacturer.

This financing solution offers peace of mind for manufacturers, as their payments are accelerated and guaranteed. It also expedites moving products through the channel and can improve relationships with dealers, as their customer offering is then strengthened. The distributors benefit from extended payment terms, better product availability, and improved cash flow management.

Inbound financing is custom tailored to address a business’s unique goals, challenges and needs. At DLL, we work with manufacturers to design flexible, customized, end-to-end financial solutions with their network of distributors. Through inbound financing, DLL pays the manufacturer immediately, protecting their cash flow, guaranteeing a pay day and transferring risk to DLL. It allows manufacturers to spend more time selling product (and less time chasing payments), and gives distributors more purchasing power and more time to sell before making payments.

Ask us about how inbound financing can you help improve cash flow and scale your business.