How Distributors Use Supplier Financing to Extend Terms

In episode 50 of Wholesale & Distribution with Fexingo, Lucas and Luna explore how distributors can use supplier financing — specifically reverse factoring and dynamic discounting — to improve cash flow and strengthen supplier relationships. They break down the mechanics of a typical reverse factoring program, using the example of a mid-sized industrial distributor with $50 million in annual purchases. Lucas explains how the distributor can extend payment terms from 30 to 90 days while suppliers get paid early through a third-party financier. Luna raises the tension: smaller suppliers may feel squeezed by longer terms. Together they walk through how to structure the program so both sides win, including tips on technology integration and negotiating with banks. The episode closes with a forward look at how embedded finance could make supplier financing a near-automatic feature of distribution platforms. No theory — just a concrete playbook for turning payables into a strategic tool. #SupplierFinancing #ReverseFactoring #DynamicDiscounting #CashFlow #Distribution #SupplyChain #WorkingCapital #TradeCredit #B2BFinance #PaymentTerms #Procurement #Liquidity #EmbeddedFinance #Business #FexingoBusiness #BusinessPodcast #WholesaleDistribution #ChannelPartners Keep every episode free: buymeacoffee.com/fexingo