Fairtrail Finance

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Supplier finance

Pay your suppliers, keep business moving.

Funding to pay your suppliers now, with repayment structured around your business and the purchase behind it.

Funding from £50,000 to £750,000

How we work Talk to our team
A business owner and supplier review an order beside packed goods and components in a warehouse

Supplier-focused Funding for supplier payments

Structured repayment Built around your cash flow

Considered Assessed on the whole opportunity

Your supplier needs paying. Your cash has other commitments.

A supplier payment can fall due before your business has the cash available to meet it comfortably. Supplier finance can help fund that payment, giving your business an agreed period to repay.

We look closely at what you’re buying, the supplier’s terms and how the purchase supports your business. We assess the cash flow expected to repay the funding, where the risks sit and how a structure could manage them.

We look at the purchase behind the payment and what makes repayment workable.

What we look at

  • The goods or materials being purchased and their business purpose
  • The supplier, invoice and agreed payment terms
  • The delivery arrangements and any conditions affecting the purchase
  • The business cash flow and expected source of repayment
  • The available security and how transaction risks can be managed

More room to manage your working capital

A workable supplier-finance structure may help you meet agreed payment dates, maintain supply and preserve cash for other business commitments.

Tell us what makes the payment difficult to fund. We consider the substance of the purchase and the repayment plan to assess whether we can support it.

Every opportunity is subject to underwriting, due diligence and documentation. The right structure will depend on the facts of the transaction.

Supplier finance in practice

Your supplier gets paid. You get more time.

A business has a £75,000 supplier purchase to pay for upfront. Supplier finance settles the purchase, giving the business 90 days to repay.

  1. Before funding

    Agree the purchase

    The business agrees a £75,000 purchase with its supplier, payable upfront.

  2. Day 0

    Pay the supplier

    £75,000 of finance pays the supplier in full, meeting the agreed payment terms.

  3. During the 90 days

    Manage your cash flow

    The business uses the purchase in its operations while retaining cash for other commitments.

  4. Day 90

    Repay the finance

    The business repays £82,206, comprising the £75,000 advance and £7,206 in finance costs.

How the funding adds up

Supplier purchase
£75,000
Amount financed
£75,000
Total finance cost
£7,206
Total repaid on day 90
£82,206

Time to repay

90 days

Your supplier receives £75,000 upfront. Your business repays at the end of the agreed period.

Total finance cost over 90 days £7,206 Including interest and arrangement costs.

Illustrative assumptions only, not a finance quote. Eligibility, security and pricing are assessed individually. No early-payment discount is assumed.

Supplier finance

Your questions answered

A little more detail to help you explore whether funding could work for your business.

Is my supplier paid directly?

Supplier finance is structured to fund payment to your supplier upfront, while your business repays over an agreed period. The payment arrangements and timing would be confirmed as part of the funding terms.

Can funding cover materials used in production?

Yes, we can consider purchases of materials or components that your business will turn into finished goods. We look at the production timetable, expected sales and wider business cash flow to understand how the funding would be repaid.

Can I negotiate an early-payment discount?

Paying upfront may give you scope to negotiate a discount with your supplier. Any discount is agreed between you and the supplier; it is not guaranteed by the funding. Compare any saving with the total finance cost when considering the benefit to your business.

How long can I have to repay?

The repayment period is agreed around the purchase and your business cash flow. Our example shows 90 days, but the appropriate term depends on the transaction and assessment.

What information should I provide about the purchase?

Share the supplier’s quotation or invoice, payment terms, what you are buying and when it is needed. Explain how the purchase supports your business and which sales or other cash flow you expect to use to repay the funding.

Let’s talk about your suppliers

Have a supplier payment to fund?

Tell us who you need to pay, what you’re buying and how you expect to repay. We’ll look at the detail and explore whether a workable structure is possible.

Discuss supplier finance