Barclays introduces supplier finance service

UK banking group Barclays has launched an online supplier finance service designed for its corporate customers.

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Barclays introduces supplier finance service

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The bank says the system allows both parties to a commercial transaction to manage working capital requirements and business processes associated with the supply chain more effectively.

The service enables buyers to better manage payment terms and enhance their days payables outstanding (DPO), while suppliers will benefit from an accelerated payment option, offering a discounted early settlement of their trade receivables, reducing their days sales outstanding (DSO).

Angela Potter, head of Barclays International Trade and Cash Solutions, comments: "As corporate supply chains become increasingly complex, businesses require more sophisticated means to help manage working capital. The Barclays Supplier Finance Service provides an effective tool to both improve working capital positions and enhance the efficiency of business processes."

Potter says both buyers and suppliers will be able to benefit from the service. Suppliers are able to access competitive receivables finance through their inclusion within a buyers supply chain programme, while buyers can enhance payment terms without adversely affecting their supplier relationships.

"The efficiency improvements should come at a welcome time for treasurers as they contemplate important changes in the payments arena such as Sepa," adds Potter.

Earlier this year Lloyds TSB said it was teaming with US investment bank JPMorgan to provide a supplier finance service aimed at UK investment-grade corporate and global businesses.

The service - launched by Lloyds TSB's commercial finance unit - enables UK organisations to offer their suppliers the choice of when to receive payment, which may be earlier than agreed payment terms.

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