How we do it.
After proving themselves and their product in the marketplace, our partner (a mid-size company) is experiencing increased demand for their product.
Their customers (mid and large corporates) require the product to be supplied under a 4-year contract, with the corporate paying monthly over the contract term.
Our partner has a limited ability to continue funding the costs of the product they are required to deliver upfront, whilst payment from the customer is stretched over the 4-year contract period. They are not a bank, and have limited capital.
Eqwe work to tailor their supply contract with the customer so that we can pay our partner the total cost of the product on delivery. This gives them the funds to pay for the product, book profit on the initial supply, and transfer the 4-year credit risk of the customer to Eqwe, all without the customer signing any further agreements.
The client continues to pay our partner, from which Eqwe collect monthly amounts attributable to the equipment and our partner continues to earn and book its annual service and maintenance income over the contract term.