Supply Chain Finance | IFS Capital (Thailand)

Supply Chain Finance (SCF) is a working capital solution that allows Buyers to optimise their cashflow and enhance liquidity.

Why SCF?

  • Optimize cash flow
  • Possible extension of credit term
  • Reduce risk of supply chain disruption as Suppliers have access to early payments

Why IFS?

  • Special rates offered to Suppliers
  • No additional administrative work. Portal can be synchronized with Buyer’s API for automatic invoice upload.

Step 01

Supplier delivers goods or renders services to Buyer

Step 02

Buyer uploads invoice to portal

Step 03

Portal provides early payment offer for acceptance

Step 04

Funding instruction is sent to IFS

Step 05

IFS provides cash advance of up to 100% of invoice value less interest charge to Supplier

Step 06

Buyer makes payment to IFS on due date

Step 07

If any, IFS remits remaining amount to Supplier


Dynamic Discounting (DD) is a working capital solution that enables Suppliers to receive early payments from Buyers, in exchange for a discount.

  • Suppliers can request for early payment at any point once an invoice is approved
  • Suppliers can choose which invoices to be paid early at a discount
  • Discount is calculated dynamically, which offers Suppliers more advantages compared to traditional static discount
How is SCF different from Dynamic Discounting?
  • In SCF, IFS provides the financing to the Suppliers. IFS will then receive payment from the Buyer at due date.
  • In DD, Buyer makes early payment directly to Supplier. Early payment to Supplier can be funded either entirely by Buyer or together with IFS. IFS provides our platform and know-hows in managing the funding of DD trades.
How does a Buyer benefit from Dynamic Discounting arrangement?
  • In DD, the Buyer deploys their own cash to capture discounts, thus generating risk-free returns of greater yield.
  • A Buyer who has excess cash can benefit by paying off their Supplier earlier for a discount. This helps to improve the gross margin.
Why do Buyers find SCF attractive to their business in the long run?
  • SCF can help Buyers retain their Supplier base by offering cash flow options. A stable supply chain helps in long term planning, ensuring minimal disruption to businesses.