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Taking inventory

Safe and secure financing for your suppliers

Support your small and medium-sized suppliers meet your growth expectations.

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Reliable

Red Sky's commitments

We ensure the following for you:

danger
No added risks
With Red Sky your underlying contractual rights are unchanged
payment
No added costs
Red Sky charges no fees to Buyers and unlocks cash for suppliers at a cheaper rate than domestic options
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Unchanged operations
Your payment terms and payment periods don't change
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Trust and security
Red Sky is a London based financial institution registered with the FCA
Trusted by
Lineage
Fresh-Pride
Walmart
Dole
Butternut Box
Omnitrade

Benefits

Advantages for you

Strengthen relationships and make your supply chain your competitive advantage.

Resilient exporters

Enabling exporters with access to capital supports them through periods of growth and secures your supply chain

Business woman with tablet

Stronger relationships

Supporting your suppliers with finance makes you a preferable buyer in the supply chain and cements critical relationships in growing product categories

Undisrupted
supply chain

Ensure your supply chain is undisrupted by cash flow squeezes - enabling you to make larger, more frequent orders and increasing supply chain agility

24/7
support

A dedicated account manager available to support you at any time

Process

How it works

Five easy steps in the financing lifecycle.

Invoice upload

upload

The seller submits invoices for goods provided to overseas customers

Verification

verification

The invoice is digitally verified and the buyer approves for early funds release

Advance Payment

payment

Red Sky advance the seller 90% of the invoice value

Collection

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We collect incoming payments from the buyer in line with existing payment terms

Settlement

complete

Once the invoice is settled, we pay the seller the remaining balance, minus our fees

Discover

More information

  • Invoice financing (also known as factoring) is a financial service where a business uses its invoices to release cash flow into their business. This allows the business to receive immediate cash flow instead of waiting for the payment terms to lapse.

  • Suppliers usually need invoice financing because demand for their product is increasing - but are being paid on credit. This means as they load and send more and more shipments they quickly run out of cash. This need is most pressing for high quality, reliable suppliers who are favoured by their buyers in a particular industry.

    This is also frequently seen in exporters of seasonal products.

  • Red Sky provides immediate cash flow to suppliers by releasing cash on invoices that are due but not yet paid. This helps suppliers manage their working capital more efficiently meet scheduling demands from buyers and sudden large or more frequent orders.

  • Having a financially resilient supply chain means a tighter vertical integration with suppliers ensuring they can hit volume commitments. It also makes suppliers more agile enabling larger and more frequent orders at shorter notice.

    You can become a preferred buyer as your trade can release cash into their business faster than other companies.

    Being able to grow your business with trusted suppliers that you know deliver good quality products is critical to building resilient and long term supply chains.

  • In emerging markets banks often only provide lending if it is security backed and often require personal guarantees on family homes. This limits the amount of trade suppliers can do as often the value of assets (e.g. production facilities) is lower than the value of trade that they can export. It also puts them at personal financial risk in the case of a buyer default.

    Red Sky provides unsecured lending to trusted suppliers to ensure they can access the finance they need at a fair and equitable price.

  • For you as a buyer, invoice financing means that you will need to pay Red Sky instead of your original supplier for the invoices that have been financed. There are no fees or additional risks or liability you take on in the process.

  • No, as a buyer, you are not required to pay any fees for the invoice financing service provided by Red Sky.

  • No, you do not take on any additional risk. Your payment terms and conditions remain the same, and your relationship with the supplier continues as usual.

  • All invoices will be paid to Red Sky until one of the parties decides to break the contractual agreement between Red Sky, the supplier and customer.

  • The only change is the payment destination. Instead of paying your supplier directly, you will make the payment to Red Sky's bank account as specified in the notification you receive.

  • If you have any questions regarding a financed invoice, you can contact your supplier directly or reach out to a dedicated Red Sky account manager for assistance.

  • If you accidentally pay your supplier instead of Red Sky, notify both parties immediately to resolve the issue. The supplier may need to transfer the payment to Red Sky to settle the financed invoice.

  • No, your payment terms will remain the same. The due dates and payment amounts specified in the invoice will not change due to the financing arrangement.

  • Yes, you can still negotiate payment terms with your supplier. However, once an invoice is financed, the payment must be made to Red Sky according to the agreed terms.