Vietnam's retail market is witnessing explosive growth with a series of large and small supermarket chains springing up like mushrooms after the rain. However, behind the glory of the retail industry, suppliers are facing a difficult problem: lack of business capital. Let's Bizzi Learn about solutions to advance sales invoices through the article below.
Capital challenges of suppliers for supermarket chains
However, behind the halo of this growth are the mounting difficulties that suppliers are facing, especially the problem of capital. Suppliers to supermarket chains often have difficulty maintaining a stable cash flow due to long payment periods, which can be up to several months. This puts them in a state of “capital starvation”, not having enough finance to maintain production, business activities and expand scale.
- Debt collection time is prolonged: Normally, suppliers have to wait from 1 to 6 months to receive payment from supermarket chains. This causes their cash flow to become clogged, making it difficult to maintain production and business activities.
- Low credit limit, difficult to access loans: Suppliers, especially small and medium-sized enterprises, often have difficulty accessing loans from banks due to low credit limits, cumbersome procedures and collateral requirements.
- Lack of effective cash flow management system: Many suppliers do not have a professional cash flow management system, leading to not clearly understanding the financial situation, making it difficult to make accurate business decisions.
These challenges create a vicious cycle: lack of capital leads to difficulties in production and business, thereby making it even more difficult to access capital. If this situation lasts, the business may fall into bankruptcy.
Consequences of capital shortage
Prolonged lack of capital not only limits the supplier's ability to expand its business but also causes serious consequences such as delivery delays, production interruptions, and even the risk of bankruptcy.
- Limit the ability to expand business: Lack of investment capital prevents businesses from expanding production and business, missing many development opportunities.
- Production interruption: Insufficient capital to buy raw materials and pay workers, leading to production interruptions, delivery delays, and affecting the reputation of the business.
- Risk of bankruptcy: If the lack of capital persists, the business may fall into insolvency, leading to bankruptcy.
Financial solutions to finance advance sales invoices: Lifesaver for suppliers
In order to solve the capital problem for suppliers, Bizzi Financing has partnered with Validus, Southeast Asia's leading financial platform, to launch the "Sales Invoice Advance Financing" solution. This is considered a breakthrough financial solution, bringing many practical benefits to suppliers:
- Advance up to 100% invoice value: Bizzi allows suppliers to advance up to 100% of sales invoice value, helping them quickly obtain the necessary capital to maintain business operations.
- No collateral required: Unlike bank loans, Bizzi does not require suppliers to have collateral, making it easier for them to access capital.
- Funding limit up to 3 billion VND: Bizzi provides flexible financing limits of up to 3 billion VND, meeting the diverse capital needs of suppliers.
- Competitive interest rates: Bizzi is committed to providing competitive interest rates compared to other unsecured loan packages on the market, helping to minimize the financial burden on suppliers.
- Simple procedure, online 100%: Bizzi's registration and disbursement process is done completely online, saving time and effort for suppliers.
- Centralized management platform: Bizzi provides an online platform for suppliers to easily track information about invoices, debts, limits and account balances.
- Online tool for loan package consultation: Bizzi has an online tool that helps providers quickly find the right loan package for their needs.
The future of financial solutions to advance sales invoices to suppliers
The cooperation between Bizzi and Validus is expected to create a breakthrough in the field of supply chain finance in Vietnam. The solution of “Advance Invoice Financing” is not only a temporary solution to help suppliers overcome current difficulties but also an inevitable trend of the future, contributing to promoting the sustainable development of the retail market.
With outstanding advantages, this solution promises to attract the attention of many suppliers, opening up opportunities to access capital more easily and effectively. This is also a testament to the continuous efforts of Bizzi and Validus in applying technology to bring creative financial solutions to meet the increasing needs of the market.
If you are a supplier facing capital difficulties, do not hesitate to contact Bizzi for advice and support.
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