For anchors · 02 Diagnose
Where is working capital trapped in your network?
Your review appears here
Start with step one: who you trade with, about how many, and your typical terms. A first picture appears at once, worked out on this page from your numbers alone.
Who owes the money: suppliers
Under Reverse factoring, your anchor carries the obligation and settles with the financier. You are not borrowing against your own balance sheet. Under Purchase order financing and Invoice discounting, you carry the obligation, the financing is with full recourse: if your anchor does not pay, or you do not deliver, you must repay. What the arrangement is in your program is set out in your financier’s documentation.
Who owes the money: distributors
Under Distributor finance, you carry the obligation. It is a credit facility to you, with recourse to you, and you repay it. Under Shariah-compliant dealer finance, you owe the agreed price of the goods you bought. You pay the agreed price on the agreed dates. It is a binding obligation: if you pay late, recovery follows documented Sharia principles.
From review to program
The review is the second of five steps. The rest (co-designing the program, inviting financiers, scaling across your sector) is set out on the anchors page.