Supply Chain Finance Programme Pricing Model

Model the economics of SCF programmes — reverse factoring/payables finance, receivables discounting, and dynamic discounting — from both buyer and supplier perspectives. Compare cost vs. WACC, yield to funder, and NPV of early payment.

Reverse Factoring Receivables Discounting Dynamic Discounting Client-Side · Zero PII Cat-26

Scope & reliance — Illustrative financial model using standard SCF pricing formulae. Not financial advice. Rates, spreads, and benchmarks are indicative only — verify against live market pricing. All calculations performed locally in your browser. Zero PII transmitted. CC BY 4.0.

▸ Programme Type

Reverse Factoring Payables finance — funder pays supplier early; buyer settles at original terms Receivables Discounting Seller advances against unpaid invoices at a discount; reserve released on collection Dynamic Discounting Buyer uses own cash to pay early; earns a yield on surplus liquidity

▸ Programme Parameters

Invoice Face Value ($)

Original Payment Terms (days)

e.g. 90 DPO

Early Payment Terms (days)

Days after invoice date supplier is paid early

Annual Discount / Financing Rate (%)

Rate offered by buyer or funder

Buyer Credit Rating (RF only)

Drives funder's cost of funds

Supplier's Own Borrowing Rate (%)

For savings comparison

Monthly Programme Volume ($M)

Total invoices per month across programme

Funder Spread Over Buyer Cost (bps) — RF

Typical: 50–150 bps

Advance Rate % — Receivables Discounting

Typically 80–90% of invoice value

Per-Invoice Economics

Item	Amount ($)	Notes

Annual Programme P&L

Item	Annual ($)	Notes

Break-Even Analysis

Mode Comparison — Cost to Supplier (Annual, % of Invoice)

Market Benchmarks

Typical RF Spreads: 50–150 bps over buyer's credit cost. Investment-grade buyers (A/BBB) typically achieve all-in supplier rates of 3–5%.
Receivables Discounting: Typically 0.5–2% above buyer's credit spread; advance rates 80–90%.
Dynamic Discounting: Buyer earns 1–3% annualised yield on cash deployed early. Competitive for buyers with excess liquidity above WACC.
Supplier Benefit: SME suppliers with high borrowing costs (7–12%) typically save 3–8% vs. their own facilities through RF programmes.