Trade Payables
Credit enhance your business
Reverse Credit
Reverse Credit is a methodology through which Aon can assist you in improving your credit terms with suppliers and financiers, by proactively sourcing credit insurance capacity on your business. This approach has proven to be successful in the world of merger & acquisition, private equity and for organisations who have not been able to articulate the financial standing of their business to the insurance market. By following this transparent process Aon has supported clients in securing significant additional credit lines.
Supply Chain Finance
Whilst Supply Chain Finance (SCF) is common, there could be benefits to using credit insurance capacity on the client to enhance the SCF facility. SCF has the benefit of paying suppliers early, whilst allowing the client to extend their payment terms to the funder (e.g. by up to 120 days).
How SCF works
- Invoices are received from the supplier and, once approved, are uploaded to the platform.
- Supplier has the option to request early payment. If they do, the SCF provider then pays discounted funds based on the receivable.
- On the invoice due date, the buyer repays the full value of the invoice to the SCF provider.
The facility allows for an enhanced cash position.
- Use credit capacity to support your day-to-day procurement activities
- Pay suppliers early whilst pushing out your own payment terms
- Insurance covers the default risk of the SCF client, either using insurer or financier SCF platforms
Aon UK Limited is authorised and regulated by the Financial Conduct Authority. FPNAT.391