Description of the franchise model:
PayEx has developed a trading model in which all trades are
made with a purchasing company. PayEx finances and administers the purchasing
company’s payment flow and ensures that all supplier invoices are paid on the
due date. A supplier also has the option to receive payment before the due date
and thus improve its liquidity.
The purchasing company delivers the goods to the connected
distributors using a service called Custodial Inventory, in which PayEx ensures
ownership of the goods for the purchasing company and receives payment for
goods sold in the stores. Under this model, the purchasing company retains
ownership of the goods until they are sold, with a right of segregation in the
event of bankruptcy. A distributor can thus increase the flow of goods without
being dependent on liquidity or the amount of capital tied up in the
business. Each distributor has a limit
for its inventory, which is communicated to the suppliers on a daily basis.
For a description of other inventory financing solutions,
please contact us.
Benefits of the trading model:
- Guaranteed payment by PayEx on the invoice due date
- View the store’s limit each day
- Receive early payment of invoices
- Secured and controlled distribution
- One invoicing and contractual party for the whole chain
- Facilitates expansion and the launch of new franchise stores
- Ability to increase sales, as stores are not limited by
their liquidity
- Ability to increase sales as the chain expands
- No need for credit insurance or factoring (if early payment
option is exercised)
- Approved POS or other ECR software
- Connects to PayEx Trading Platform