When the goods are taken over by jtw, the balance sheet is reduced by the value of the goods for the period from their delivery to the time of actual demand or from completion to actual sale.
Due to the longer payment terms for the delivery of goods or the immediate payment of the finished goods, the liquidity of the company is improved.
The takeover of the stock by jtw and the extension of the payment terms for the delivery of goods, or the takeover of the finished products and the immediate payment releases tiedup working capital.
Immediate payment of the invoices to the supplier by jtw increases the liquidity of the supplier and improves the relationship with them, which leads to strengthening the supply chain.
Liqidity improves as a result of the balance sheet reduction and the longer payment terms (improved DPO) or the immediate payment of finished products (improved DSO) and reduce liabilities to banks, which optimizes balance sheet ratios such as C2C and ROE.
By taking over the finished products by jtw, the company immediately receives the agreed purchase price. At the time of sale, jtw receives the purchase price agreed from the customer on the due date. The company can thus agree on better sales conditions with the customers.
Due to the later payment terms or the immediate payment of the finished products and the resulting increased liquidity, liabilities towards credit institutions or other borrowed capital can be reduced.
With jtw taking over the inventory and finished goods warehouse, inventory can be managed off the company’s balance sheet and be expanded as needed without impacting the balance sheet, balance sheet ratios or companies rating.
jtw.finance GmbH
Maximilianstraße 2
80539 München
Germany
Tel +49 (0)89 20 500 85 637
Fax +49 (0)89 20 500 81 50
[email protected]