|Any business can use it?||✔||✗||Earlytrade is personalised to each business, no matter how small.|
You may not have access to supply chain finance programs if you are not a Tier 1 vendor with significant accounts receivable. SCF may also be a less accessible option for small vendors due to the cost to the bank for compliance and onboarding of each vendor.
|Favourable pricing?||✔||✗||Earlytrade is on-demand and offers 'pull pricing' where the vendors set their own rates and only participate when they are happy with the price.|
SCF programs operate 'push pricing' where they mandate the prices on the vendors. And while the prices with SCF are often low due to the fact they base it on the creditworthiness of the customer, SCF often requires all of your invoices to be financed, with no choice for you.
|Extension of vendor payment terms?||✗||✔||Earlytrade is an ethical early payment solution and works with companies that have payment terms as low as 7-14 days, in some instances.|
SCF programs often mandate the corporate customers to extend their payment terms with vendors in order to drive adoption of the program. This typically lengthens payment terms from 30 days to 60 days or 90 days in some cases. This puts huge strain on the vendors and, in the year it happens, impacts them as if they did not receive payment for an entire month that financial year. It also puts vendors at risk of default which put further strain on supply chain health.