“Buy Now, Pay Later” – Supply Chain Finance Explained

If you’ve bought anything recently, either online or on the high street, you may have noticed Klarna or ClearPay at checkout. These online payment solutions allow customers to defer or split payments into several smaller amounts. They can buy more with less strain on their personal budgets and can have goods delivered before they’ve been paid for. This reduces risk and frees up cash.

So how can we apply these same principles to B2B trade relationships? The answer is supply chain finance. Supply chain finance gives your business the opportunity to purchase goods from your suppliers in bulk, or in advance, and enables you to defer payments without applying pressure on your supplier base. In such a scenario Diaspora initiates an invoice finance agreement directly with your supplier and pays them upfront on your behalf. This unties your supplier from long payment terms and enables you to access a wide range of benefits, such as volume discounts resulting in higher profit margins and a lower cost of goods. On the agreed due date, you simply submit payment via our secure platform. Increased buying power expands your capacity to fulfil larger orders. Supply chain finance is ideal for when you’re struggling to manage the administrative burden of handling a large volume of supplier payments.

With Diaspora you can benefit from streamlined monthly or bi-monthly payments and we will monitor the due dates of all payables and advance cash to your suppliers on demand.

How our platform works for your business:

1. Send a purchase order via our platform

2. Supplier uploads invoice

3. Supplier reviews and accepts an offer to cash the invoice

4. You transfer the invoice amount to Diaspora on the due date.

Get in touch to discuss your options with us today by clicking here.