· Kalamata Capital Group and its affiliates (Kalamata) have partnered with a technology-enabled, non-bank, online financing company that empowers suppliers and buyers to facilitate B2B purchases with confidence.
· Kalamata has been facilitating the financing and purchasing of much needed PPE from around the world to support first responders of COVID-19 in the United States.
· Kalamata has stepped in at a time when more traditional financing options such as banks and other lenders have been less willing to provide capital.
· Kalamata is facilitating 30-120 day payment terms for up to $10 million per PPE order.
Kalamata Capital Group is a financial technology company that provides small businesses with funding. Kalamata and its affiliates have partnered with a technology-enabled, non-bank, online financing company that specializes in supply chain finance to help facilitate the purchasing of desperately needed PPE in the United States.
Supply-chain financing is the financing of receivables, whether via traditional factoring arrangements where suppliers sell their accounts receivable at a discount to get cash faster or via short-term loan to the buyer to pay their supplier immediately while allowing the buyer to retain traditional 30-120 day payment terms.
Given the immense demand, many PPE manufacturers are now requiring cash payments upfront before PPE manufacturing begins versus offering traditional 30-120 payment terms after goods have been delivered, increasing the importance of working capital flexibility. Demand for non-bank supply chain financing has escalated as banks have stopped providing loans to many companies, further constraining their working capital flexibility just when their needs have increased due to changes in payment terms mandated by many counterparties.
Supply chain financing alleviates the working capital constraints of all parties in the PPE supply chain including manufacturer, distributor and retailer. Specifically, supply chain financing facilitates the payment to the PPE manufacturer upfront while also offering 30-120 day payment terms to the distributor via a short term loan to the distributor. Additionally, once PPE is delivered to a distributor, supply chain financing enables “the second leg” of the PPE value chain by facilitating traditional payment terms between the distributor and end retailer via a factoring arrangement. These “back to back” supply chain financing offerings create a seamless working capital solution throughout the PPE value chain.
With supply chain financing, the money keeps flowing and companies can get cash to their suppliers quickly to gain immediate access to PPE supply that is urgently needed but tough to finance given the macroeconomic environment.
About Kalamata.com, LLC
Kalamata.com, LLC (the parent company of Kalamata Capital Group) and its affiliates provide innovative tools and valuable services to make small and medium-sized business (SMB) commerce and transactions easier and faster. The Company's integrated tools and services platform provides SMBs and the entire SMB ecosystem, including sourcing partners, with critical functionalities they need to engage with customers, access funding, manage their operations, analyze their data in real-time, and run their IT in order to grow their businesses. Founded in 2013, the company is headquartered in Bethesda, MD. For more information, visit www.kalamatacapitalgroup.com
The original press release can be found here: https://www.prnewswire.com/news-releases/kalamata-capital-group-and-affiliates-are-facilitating-supply-chain-financing-for-personal-protective-equipment-ppe-301050868.html
SOURCE Kalamata Capital Group LLC