Supplier Finance
Competitive financing costs and early payment on receivables
Do you have an invitation to enroll in the Supplier Finance Early Payment Program?
Already have online access? Sign On. To confirm your Buyer’s eligibility, email us at supplieronboarding@wellsfargo.com.
Explore early payment opportunities
Participation in Wells Fargo’s early payment program may help your company turn accounts receivable into cash on a more timely basis, reduce financing costs, and enhance working capital. Wells Fargo provides the option to receive cash early at a competitive rate that may leverage a buyer's financial strength.
How the early payment program works
- Supplier ships goods and invoices to buyer. (Day 1)
- Using existing buyer process, buyer approves invoices for payment and sends an approved invoice file to Wells Fargo. (Approx. Day 10)
- Supplier is notified of buyer invoice approval and sees settlement details.
- Supplier may elect early payment of invoice less discount, initiating invoice sale to Wells Fargo (Approx. Day 10)
- Buyer funds Wells Fargo for the full amount of the payment due on the invoice due date.
Sample savings calculation
In this example, the supplier would save $87,389 annually and get paid on day 10 instead of day 120. Terms and discount margins vary by program. Please contact a Supply Chain Finance representative for final pricing.
Without Program
With Program
Annual Spend (Estimated)
$10,000,000
$10,000,000
Proposed Payment Terms
120
120
Payment Received Day
120
10
Current Cost of Capital
9.500%
9.500%
Discount Margin (Spread)
N/A
1.750%
Benchmark Rate (Term SOFR)
N/A
4.890%
Program All-in Rate
N/A
6.640%
Carry Cost through Payment Date
(120 days @ 9.500%) $26,389
(10 days @ 9.500%)
Discount Cost
N/A
$202,889(110 days @6.640%)
Total Cost
$316,667
$229,278
Annual Savings with Program
N/A
$87,389
Potential benefits of selling invoices to Wells Fargo
Selling your buyer-approved invoices to Wells Fargo offers many advantages
Improved liquidity and lower cost of borrowing
- Accelerated cash flow
- Lower cost of carry
- Reduced accounts receivable and days sales outstanding
- Reduced capital costs
- Reduced borrowing pressure
Flexible purchase options
- Simple discount calculation
- No Wells Fargo processing fees – only discount cost
- Automatic discounting after acceptance of approved invoices or other preferred timing (e.g., daily, weekly, by invoice aging, etc.)
- If a supplier does not elect to be paid early, buyer will provide full payment on due date and Wells Fargo will pass funds to the supplier
Payment transparency
- Invoice detail visibility on each transaction
- Email notification of full remittance detail for each payment
- Embedded CTX data with ACH payments capability
- Historical transaction details
Flexible payment options
- Wells Fargo will pay in any bank account you provide
- No limit to the amount a supplier can discount
Competitive financing costs and early payment on receivables
Do you have an invitation to enroll in the Supplier Finance Early Payment Program?
Already have online access? Sign On
To confirm your Buyer’s eligibility, email us at supplieronboarding@wellsfargo.com
Rates, terms, and payment cycles are for representative purposes only. Terms are mutually agreed between Wells Fargo Bank, N.A. and the supplier. Nothing herein constitutes a credit commitment. Participation and selection is subject to further review and documentation.
Products and services may require credit approval and may change due to market conditions. Wells Fargo Global Receivables and Trade Finance is the trade or business name for certain asset-based lending services, senior secured lending services, accounts receivable and accounts payable financing services, purchase order financing services, factoring, and letters of credit and other trade financing products of Wells Fargo & Company and its subsidiaries.
RO-4955880
LRC-1025
