Paying early is paying yourself out of cash
Shortening terms for a struggling supplier works exactly once, and it comes straight out of your own working capital position.
For tier 1 suppliers
Your suppliers get funded. Not out of your cash, and not on your credit line.
You sit between an anchor's schedule and a sub-tier that finances your purchase orders out of pocket. When one of them runs short, it becomes your late delivery. We let a funder finance those tier 2 invoices directly — with no early-payment programme for you to run, no facility to contract, and no exposure added to your books.
Your position in the chain
Tier 1
OEM
Anchor issues you a PO
Your order book, their credit
Your order book, their credit
T1
You issue a PO to tier 2
Castings, machining, material
Castings, machining, material
T2
Tier 2 invoices you
Financed by the funder, not by you
Financed by the funder, not by you
Your terms don't move. You still pay the invoice on its original due date —
to whoever holds it.
The squeeze
You absorb sub-tier fragility whether or not you caused it
The anchor holds you to a schedule. Your tier 2s hold the parts. If a machine shop can't fund next month's material, the delay lands on your delivery performance — and the usual fixes all cost you money.
Your own facility is finite
Extending a guarantee or lending your credit standing downward consumes headroom you need for your own growth and tooling.
You find out late
The first hard signal that a tier 2 is capital-constrained is usually a missed promise date — after the expedite window has closed.
What you get
Sub-tier liquidity you don't have to fund, and sight of who's straining
Because we can prove your purchase order sits behind your tier 2's invoice — and that your purchase order exists because of anchor demand — a funder can price that invoice off the chain instead of off a small supplier's balance sheet.
- Suppliers financed at delivery without early payment, discounting, or cash from you.
- Terms and cash flow unchanged. You pay on the original due date, as you do today.
- Health indicators on the tier 2s tied to your open purchase orders — funding demand, payment behaviour, concentration.
- Fewer capacity surprises and fewer expedite premiums driven by supplier cash, not capability.
- A stronger position with the anchor as the tier 1 whose sub-tier stays reliable and transparent.
What you contribute
- Permissioned ERP access to the purchase orders you issue to tier 2, and the anchor POs or contracts behind them.
- Invoice acknowledgement through the same connection — confirming what you received matches what was ordered.
What you don't take on
- No facility, guarantee, or credit commitment.
- No early-payment programme to operate.
- No change to your payment terms or DPO.
- No obligation to fund any supplier yourself.
Your only operational change is confirming, through data you already hold, that a delivery happened.
Compared with the alternatives
The options you have today for a cash-short tier 2
| Pay tier 2 early | Extend your own credit | Deep-tier financing | |
|---|---|---|---|
| Cost to you | Direct working-capital hit | Facility headroom consumed | None — funder capital |
| Your payment terms | Shortened | Unchanged | Unchanged |
| Credit exposure taken | Yours | Yours | Funder's, priced off the chain |
| Scales across suppliers | No | No | Yes — per transaction |
| Sub-tier visibility gained | None | None | Health & criticality signals |
Next step
Point us at one anchor programme you supply
We'll trace the tier 2 invoices sitting behind your purchase orders on it, and show you which of them a funder can finance now — and which of those suppliers we'd flag.