Redington turned to Finverity for help structuring and delivering a truly tailored working capital solution - Distributor Finance.

What is Distributor Finance?
Distributor Finance, sometimes called Channel Finance, is the provision of financing for distributors of a large anchor supplier (manufacturer or a larger distributor) to cover working capital needs arising from the resale of goods.

The facility enables distributors to access working capital by drawing funding under extended payment terms between the anchor and distributors until they have resold the goods and converted receivables to cash. In effect, it’s a combination of Invoice Discounting to the anchor supplier and Payables Extension to the distributor.

Distributor finance benefits the whole supply chain. The anchor supplier can grow sales without taking additional credit risk on partners, while distributors can utilise the additional liquidity to increase purchasing power and subsequent sales revenue.

In today's tough economic climate, where cash flow management is crucial and market volatility is high, Distributor Finance offers a lifeline to companies like Redington. It allows businesses to maintain liquidity, invest in growth opportunities, and strengthen their supply chains without incurring prohibitive costs or risks.

By collaborating with Finverity and National Bank of Fujairah (NBF) to develop and implement a bespoke Distributor Finance Programme, Redington and its extensive network of trading partners now have seamless access to working capital.



The benefits of the programme include:

• Strengthened relationships with distributors
  The extended credit terms and additional working capital provided to Redington’s distributors have not only facilitated their business reinvestment but also strengthened their relationships with Redington, fostering a more resilient and cooperative supply chain network.

  
  

• Significant sales growth
  Redington projects a $300 million increase in sales over the next 12 months, achieved without significantly raising credit risks. This growth is made possible by the enhanced financial flexibility and extended credit terms provided to their trading partners.

  
  

• Embedded delivery through finverityOS 
  The implementation of Finverity’s award-winning SCF platform, FinverityOS, ensures seamless integration into Redington’s daily operations. This platform’s intuitive user interface allows funds to be drawn with just a few clicks, streamlining the process and reducing operational complexity.