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When exporting goods to buyers overseas, suppliers typically wait 30 - 120 days for payment. Such ‘deferred payment’ is normal in international trade but it ties up capital and can have a crippling effect on cash flow and business growth.
Invoice financing (also known as ‘invoice factoring’) provides the exporter with immediate payment of that debt – by transferring money to the supplier as soon as the goods are shipped and collecting money later from the buyer. In this way, the supplier gets the cash without delay and is protected against non-payment.
Read more about invoice financing here.
Fast release of working capital
Stenn’s financing platform provides fast payment of invoices and frees up working capital that could be tied up for 30 - 120 days in international trades. With invoice financing, suppliers can get their invoices paid as soon as the goods are shipped, yet their buyers will not have to pay for them until later, giving buyers time to receive the goods and make use of them. In competitive international export markets, allowing buyers to pay later gives sellers a competitive advantage. Invoice financing means sellers can offer such terms without tying up their capital and deal with new foreign buyers without risking non-payment of invoices.
Competitive fees
The financing cost for invoices typically ranges from 0.99% to 5.13% of the invoice value. This amount is calculated based on an Annualised Percentage Rate (APR) of 7.9% to a maximum of 11.4%, along with a 3-Month Term SOFR rate (with a reference SOFR rate of 4%).
No risk of buyer default
Stenn's platform offers non-recourse financing, which means that suppliers are guaranteed payment even if the buyer defaults. This feature is especially helpful when dealing with new international buyers.
Read more about invoice financing here.
Find out more in this video from Stenn’s founder.
Stenn offers ‘reverse factoring’ to assist buyers. In this scenario, a buyer can ask a supplier to apply for financing on a transaction they are negotiating. This will mean that the supplier is paid when goods are shipped on an invoice which the buyer will not have to settle until, perhaps, 90, 120 or even 180 days later.
There are several possible advantages for the buyer in this:
- Scenario 1: The supplier and buyer already trade on a ‘deferred payment’ basis, but the buyer is able to obtain much better prices from the supplier if the invoice can be settled when goods are shipped.
- Scenario 2: The supplier and buyer already trade on a ‘payment upon shipment’ basis, but the buyer would prefer to move to ‘deferred payments’ to ease its cash flow and benefit from the goods before payment. However, the supplier is unwilling to tie up its working capital for months and take on the risk of non-payment.
- Scenario 3: The buyer would like to make a first purchase from a new supplier, but the supplier will not agree to deferred payments because of the risk of non-payment with an unknown buyer. The supplier wants to be paid when goods are shipped.
In each of these scenarios, reverse factoring eases cash flow for both parties, eliminates the risk of non-payment and enables new trade deals to be approached with confidence in competitive international markets.
Find out more in this video from Stenn’s Global Head of Credit.
Suppliers who meet the following criteria can apply for invoice finance:
- A supplier must be an export company, a legal entity existing for at least 12 months.
- It must sell consumer or professional goods, such as apparel, automotive parts, electronics, finished goods, food products and ingredients, machinery, equipment, metals, packaging, etc. We can also finance professional services such as software development and consultancy.
- We can finance invoices payable up to 120 days (sometimes up to 180 days as an exception).
- Your buyer will be an importer in a country free of sanctions and cannot be one of your affiliated companies.
- Stenn can not finance invoices connected with oil, gas or coal; conflict minerals; sanctioned goods; weapons and firearms; precious metals; dual-use goods; crypto; pornography.
- Your buyer can not be in a sole proprietorship.
- Your buyer can not be in arrears, insolvent or involved in court proceedings in the last two years.
Buyers/importers seeking to finance turnover must demonstrate good credit standing through profitability, positive equity and a reasonable balance. They will need to meet criteria based on the following two scenarios:
- Case 1: US-based companies looking for financing up to $500 000 (USD) will need to have been in business for at least 12 months and have an annual sales turnover of at least $500 000 (USD).
- Case 2: A Euro-based or North American company looking for finance up to $10 million (USD) will have to be in business for at least 12 months and have an annual sales turnover of at least $3 million (USD).
We can not support companies that have filed for insolvency in the past two years, nor companies in a sole proprietorship.
Stenn can finance invoices for a wide range of consumer or professional goods, such as apparel, automotive parts, electronics, finished goods, food products and ingredients, machinery, equipment, metals, packaging, etc. We can also finance professional services such as software development and consultancy.
Stenn can not finance invoices connected with oil, gas or coal; conflict minerals; sanctioned goods; weapons and firearms; precious metals.
Your supplier will be an exporter in a country free of sanctions, can not be one of your affiliated companies or have been forced into bankruptcy.
Stenn’s fees depend on the amount of finance requested, length of term, etc., ranging from 0.99% to 5.13% of the invoice value. This amount is calculated based on an Annualised Percentage Rate (APR) of 7.9% to a maximum of 11.4%, along with a 3-Month Term SOFR rate on the day the financing is approved (with a reference SOFR rate of 4%).
Faster than a bank, better than a loan
Stenn’s online invoice financing is much faster than a bank (assessment is quick and funds are paid within 48 hours of only two documents being signed) and is better than a loan (it has no influence on credit history, needs no collateral, and requires no lengthy applications and interviews).
Higher funding limits
It also offers a much higher limit than bank credit typically would - up to $10 million (USD) per buyer - and covers you against the risk of your buyer failing to pay your invoice.
Provides huge leverage
It can also give smaller companies tremendous leverage. For example, a company with assets of only $50 000 (USD) could finance a shipment of goods worth $500 000 (USD) if the buyer fits the criteria.
It will provide funding where banks often won’t
Finally, Stenn specializes in financing cross-border trade. Very often banks do not finance international deals because they don’t work in jurisdictions other than their home countries.
Read more about invoice financing here.
Yes. If the buyer defaults it’s a problem for Stenn and not for you as the supplier. You will not have to repay your financing to us. We provide ‘non-recourse’ financing, which means that we take the loss if the buyer defaults on payment.
Stenn advances 90% of the invoice value to suppliers when goods are shipped and the balance later, less pre-agreed fees. There is no need for later reimbursement of that advance payment, no matter what happens. It's our responsibility to claim payment from buyers on due dates.
Invoice financing combines cash-flow control and risk control into one simple package. Credit insurance, meanwhile, is limited only to payment protection in the event of buyer default or bankruptcy.
With credit insurance, if the buyer defaults the supplier may wait months to receive funds and the claim process is often paperwork-intensive. With Stenn’s non-recourse factoring, there is no risk and no time-consuming claim to make in the event of a buyer defaulting. The Stenn platform provides non-payment protection for the supplier and takes the risk.
Finally, Stenn allows suppliers to finance only a single invoice if they wish to. Credit insurance will often require them to cover an entire ledger.
Here are some key reasons:
- Stenn is the largest and fastest-growing online platform for financing small and medium-size businesses (SMEs) engaged in international trade.
- We provide rapid financing services in 74 countries.
- Stenn is fast, automated and easy to use. Using Stenn.com you can apply for financing from $10 000 to $10 million (USD) by signing only two documents.
- We assume your risk. You will not have to repay your finance if the buyer defaults.
- Stenn’s financing fees are extremely competitive.
- We specialize in financing sectors and geographic regions that other providers can’t, or won’t, serve.
- Stenn can finance invoices within hours, compared to weeks (or even months) with other organizations.
- We advance at least 90% of invoice face value, while competitors typically advance 70-80%.
Find out more in this video from our founder.
Stenn is a London-based FinTech that delivers rapid finance to SMEs in global supply chains.
Its high-tech platform processes onboarding, compliance (Know Your Client/Anti-Money Laundering) and risk management in one portal and can unlock working capital within 48 hours. This combination of advanced technology and commercial experience means that Stenn can provide cross-border funding solutions in transactions that banks may refuse.
Stenn specializes in supporting SMEs in 74 countries, has financed over $10 Billion (USD) since 2015 and is backed by financial giants like HSBC, Barclays, Natixis, Goldman Sachs and many others.
Read more here.
Find out more in this video from our founder.
There are several reasons why our reputation is so solid:
- Stenn is based in London and backed by financial giants like HSBC, Barclays, Natixis, Goldman Sachs, and many others.
- We have financed over $10 Billion (USD) of invoices since our formation in 2015.
- Stenn has launched a variety of programs to help small and medium-size companies (SMEs) drive international trade in the developing world.
- We are regularly mentioned in the financial press.
- Stenn is run by a seasoned team of experts from the finance, FinTech, credit, and risk mitigation sectors. Meet our team here
The process is designed to be simple via the Stenn Financing platform:
- You, the supplier, create an account on stenn.com.
- Enter your buyer’s name and assess its financing limit.
- You then submit your invoice and shipping document(s) (e.g., Bill of Lading, Air waybill, CMR documents) to the platform.
- Once your invoice and shipping documents are approved, you will get two documents - Stenn’s Agreement and a Notice of Assignment for the buyer.
- You sign the Agreement, and both you and your buyer sign the Notice of Assignment.
- We send a payment of 90% of the invoice’s face value minus any pre-paid amount to your bank account. We hold as a reserve the remaining 10% for our fees, potential offsets, late payment charges, etc.
- At the due date of the invoice, the buyer pays the invoice to Stenn, and we pay you the balance of any money due, minus our fees.
In those instances when we are required to utilise trade credit insurance, we charge a fee of 0.32% applied to the face value of each invoice regardless of payment terms (so charges are the same for 30-day invoices as they would be with 90-day invoices). There are no other hidden charges.
Find out more in this video from Stenn’s founder.
The process is designed to be simple via the Stenn Financing platform:
- You, the buyer, create an account on stenn.com and assess your financial limit.
- Enter your supplier’s name.
- Your supplier then submits the invoice and shipping document(s) (e.g., Bill of Lading, Air waybill, CMR documents) to the platform.
- Once the invoice and the shipping document are approved, there will be two documents - Stenn’s Agreement for the supplier and a Notice of Assignment.
- Your supplier signs the Agreement, and both of you sign the Notice of Assignment.
- We send a payment of 90% of the invoice’s face value minus any pre-paid amount to your supplier’s bank account. We hold as a reserve the remaining 10% for our fees, potential offsets, late payment charges, etc.
- At the due date of the invoice, you pay the invoice to Stenn, and Stenn pays your supplier the balance of any money due, minus fees.
In those instances when we are required to utilise trade credit insurance, we charge a fee of 0.32% applied to the face value of each invoice regardless of payment terms (so charges are the same for 30-day invoices as they would be with 90-day invoices). There are no other hidden charges.
Find out more in this video from Stenn’s founder.
Yes, no problem. Applying for invoice finance and obtaining a bank loan are vastly different things.
In fact, it is often the case that SMEs choose to finance their invoices because they are over their bank credit limits and need cash from other sources.
If your buyer fits Stenn’s criteria, you can get financed regardless of your current bank credit balance.
Stenn will finance international invoices for both ‘services’ and ‘goods’.
‘Services’ includes industries such as software development and consulting.
‘Goods’ includes most industries dealing in consumer goods, such as:
- Electronics
- Clothing
- Furniture
- Toys
- FMCG (Fast-Moving Consumer Goods)
- Automotive parts,
- Food and ingredients, etc.
Stenn will not finance invoices connected with the following industries: oil, gas or coal; conflict minerals; sanctioned goods; weapons and firearms; precious metals.
If you are not sure whether an industry is acceptable for our services, please contact our sales managers for more details or watch the videos below.
Find out more about sellers/exporters in this video from Stenn’s Global Head of Credit.
Find out more about buyers/importers in this video from Stenn’s Global Head of Credit.
Only two documents need a signature – an Agreement with Stenn’s Financing Platform and a Notice of Assignment with the buyer.
When applying for finance, suppliers submit the invoice and shipping document(s) (e.g. Bill of Lading, Air waybill, CMR documents, Packing List) together with the Purchase Order. We will then assess the application and, if accepted, will issue the two documents for signature.
No, Stenn's digital platform is fully automated and completely online. You apply online, sign documents online and are paid by bank transfer.
We use DocuSign for signing documents.
Stenn pays the face value of an invoice in two steps:
- We initially pay 90% of the invoice’s face value after the invoice’s goods are shipped. We hold as a reserve the remaining 10% for our fees, potential offsets, late payment charges, etc.
- We pay the remaining 10% of the invoice face value (minus any deductions) once the buyer settles (in full) the invoice.
We make all payments to your bank account.
In those instances when we are required to utilise trade credit insurance, we charge a fee of 0.32% applied to the face value of each invoice regardless of payment terms (so charges are the same for 30-day invoices as they would be with 90-day invoices). There are no other hidden charges.
Find out more in this video from Stenn’s founder.
Two documents need a signature before finalising the deal – an Agreement with Stenn’s Financing Platform and a Notice of Assignment with the Buyer.
As soon as the documents are signed, the invoice's goods are shipped, and the invoice is approved, the funds' transfer takes up to 48 hours.
For fast financing, Stenn finances between $10 000 (USD) and $10 million (USD) per one buyer.
Yes. You can finance a single invoice, or a full ledger, according to the needs of your cash flow. It’s up to you to decide on financing volume throughout your financial year.
We can even finance a part of an invoice if the first part was already financed as a down payment.
Easily. Stenn earns fees from companies that choose to finance their invoices with us. If you introduce a new client who finances at least one invoice with our platform, we will pay you a percentage of the fees we earn on every invoice we finance for that client in their first year with us.
Introducing clients to our platform can be a part-time or full-time activity.
Find out more in this video from Stenn’s Chief Finance Officer.
We have a simple system that provides you with a customized link to share with your contacts. When one of your referred contacts requests Stenn financing, you will be credited. You can track the progress of your referrals on the Stenn platform.
Both. Since invoice financing benefits both buyers and suppliers, our services may be initiated by either the buyer or supplier. Suppliers use Stenn to help develop new business relationships and increase their revenue by offering ‘deferred payment’ terms, which is the preferred payment method for buyers as it maximizes their cash flow.
Here are some key reasons:
- Stenn is the largest and fastest-growing online platform for financing small and medium-size businesses (SMEs) engaged in international trade.
- We provide rapid financing services in 74 countries.
- Stenn is fast, automated and easy to use. Using Stenn.com you can apply for financing from $10 000 to $10 million (USD) by signing only two documents.
- We assume your risk. You will not have to repay your finance if the buyer defaults.
- Stenn’s financing fees are extremely competitive and can be as low as 0.99% per month, depending on the financing volume and 3-Month Term SOFR rate (calculation using 3-Month Term SOFR of 4%).
- We specialize in financing sectors and geographic regions that other providers can’t, or won’t, serve.
- Stenn can finance invoices within hours, compared to weeks (or even months) with other organizations.
- We advance at least 90% of invoice face value, while competitors typically advance 70-80%.
Find out more in this video from our founder.
Stenn Certified Representatives (SCRs) are people who actively connect export/import companies to the Stenn financial platform. They earn commission from successful introductions. It can be a full-time or part-time income opportunity.
Find out more in this video from Stenn’s Chief Commercial Officer
An SCR invites potential clients to Stenn’s financial platform in order to offer financial support to those businesses via online invoice financing. To invite a client, an SCR uses the Stenn App interface. This is a convenient and easy-to-use tool which automates the invitation process.
Find out more in this video from Stenn’s Head of Representatives
A Stenn Certified Representative can invite several types of clients to the Stenn Platform. Usually, it will be export/import companies with a minimum turnover of $500 000 - $3 million (USD) per year or more. Stenn can help to grow their turnover, protect sellers from non-payment and give buyers an opportunity to access better terms and conditions.
As soon as the client gets financed and the deal is closed, the SCR will receive a commission from Stenn on every invoice that client finances in their first year with us. Depending on volume, SCRs can be earning well over $60 000 (USD) a year.
Rates of commission and all details concerning payment will be discussed with those who apply for this post.
Find out more in this video from Stenn’s Chief Finance Officer.
