Alternative Distribution Financing (ADF), the financing arm of Global Supply Chain Finance (GSCF) Group, has launched a new accounts payable-based financing service.

ADF´s trade payables financing (or, as the company calls it, synthetic receivables), allows distributors to extend payment terms towards key suppliers without requiring the legal involvement of the supplier or changes to the existing supplier’s terms and conditions.

The facility has a simple structure based on the distributor´s confirmed payables towards its supplier.

The facility is financed by ADF Switzerland and is managed by GSCF via its technology platform.

Kendall Stevens, CEO of GSCF Group says that he expects this specific product to become a multi-billion dollar business within the next nine to 12 months. “[The service] represents a terrific value proposition to companies from any industry that operate with certain supplier-concentration and are looking to enhance working capital. ADF provides competitive financing terms, which added to the product expertise of GSCF, makes our payables offering a very attractive and comprehensive solution,” he says.

“We are experiencing a lot of demand for trade payables financing programmes from the market, having recently activated various facilities in the Middle East and South Africa, for distributors across industries.”

GSCF Group is a Swiss-based service provider focused on structuring and servicing supply chain finance programmes.