With key accounts purchase, your company enters into a contract with Wells Fargo Capital Finance to sell receivables related to business you do with investment-grade or near-investment-grade buyers.
The image above shows the relationship between the seller, buyer, and Wells Fargo. In this example, the seller ships the goods to the buyer and generates an invoice on Day 1. Wells Fargo buys the invoice and pays the seller on Day 5. The buyer then pays Wells Fargo on the invoice due date, which could be up to 90 days after the product is purchased.
With flexible and easy setup (compared to securitization), key accounts purchase programs with Wells Fargo may help you:
- Mitigate risk
- Enhance working capital
- Optimize your balance sheet
- Improve supply chain liquidity