How does funding against invoices work?

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  • Vivek Mittal #3835

    I’m trying to understand how this concept works?

    The pharmacy buys supplies from their supplier. The supplier invoices the pharmacy. Marketlend gives the pharmacy the funds to pay the invoice immediately, thereby enabling the pharmacy to get better discounts from the supplier.

    Marketlend own the supplies till the funds are repaid?? This is the part I don’t fully understand. The pharmacy would be selling these items in the shop – so, how does Marketlend own the supplies? The supplies will be delivered to the pharmacy and they can start selling them immediately – so what is the security?

    leotyndall #3836

    Marketlend owns the supplies until the final payment is made, and places a
    security interest on the collateral of the company.

    Marketlend has a security interest to the value of the outstanding loan over all stock owned by the
    pharmacy, including but not limited the supplies they purchased with our stock.

    The security is a personal property security interest over all present and future collateral of the

    In a default scenario, we would then go to the administrator and make a claim for any stock that
    was purchased with our funds, as well as we would call upon the guarantees to claim for any
    monies we cannot collect. We can call on the guarantee at anytime when a default occurs, we don’t
    need to wait to get the proceeds of stock. We would set off any further proceeds to them.

    We have to accept that some supplies we cannot claw-back, e.g. if they had sold items and did not
    reduce our loan but we would then trace the monies and claim the monies.

    Reality is we are more likely to get money from the guarantees or the windup of the company as we have rights on all assets to the value of the loan, and then any other monies are a set off for the

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