Financial Matters

 View Only
  • 1.  Supply Chain Finance

    Posted 01-06-2023 09:28
    Has anyone used Supply Chain Finance ?  We are increasingly seeing more large customers request/require extended terms like 60, 70 or 90 days and it's getting more difficult to negotiate this.  We are interested in seeing if there are reasonable solutions so we can get our funding quicker.

    Don Kolczak CTB
    Vice President, Finance
    M2 Logistics, Inc.
    Green Bay WI

  • 2.  RE: Supply Chain Finance

    Posted 10-07-2023 10:24

    Hi Don,

    I would stay clear of customers requesting 60-90 days. They will ask, it just doesn't make financial sense.  Due to high interest rates which in turn result in high borrowing costs they are essentially asking you to finance their logistics cost. They won't pay the premium for the carried costs nor the opportunity cost to tie capital.

    Ryan Menezes
    Director | Sales & Logistics Operations
    Vonova Logistics
    Charlotte NC