Procurement Financing for Industrial & MRO Parts
Flexible financing strategies for our customers
The MRO parts business ist sometimes linked to complex value chains that require flexible financing strategies: In order to meet fixed payment terms in the procurement of industrial parts, adapted interim financing concepts are necessary. At KTB, we develop individual financing concepts for our customers worldwide in Europe, China and the United States in order to secure liquidity for value-added processes and make required parts permanently available.
Individual financing concepts for your procurement
Many manufacturers view MRO procurements as tail-spend processes operated through multiple vendors without sufficient supply chain management. Through factoring and strategic consolidation within existing value chains, we at KTB can save significant costs for our customers in the procurement of goods. In this way, we achieve the shortest possible capital commitment for customers within the scope of ongoing transactions to ensure a smooth manufacturing process and minimize risks. Financing MRO parts procurement in international trade has been part of our business for over 45 years.
Improve workflow and save costs: KTB services around financing
- Securing liquidity through interim financing for international MRO trading
- The flexible development of individual financial concepts ist one of our greatest strengths in the import-export business.
- Handling of international MRO procurement via our own KTB central warehouses
- Consolidation of suppliers and goods for workflow optimization
- Use of modern ERP and DMS systems for cost-saving process optimization
Frequently Asked Questions
What is procurement financing?
Procurement financing describes financing concepts for purchasing goods and materials along the supply chain, designed around fixed payment terms in complex value chains. Generally it concerns how the period between purchase and later inflow of funds can conceptually be bridged, as part of liquidity management and not a specific product offer.
What does bridge financing in procurement mean?
An interim financing bridges the period between purchasing goods and paying for them later and is a building block of liquidity assurance in procurement. Such bridging concepts are generally common in international trade, since time often passes between order, transport and sale during which capital is tied up.
What is factoring?
Factoring means selling receivables to a third party and is one of the financing concepts KTB can accompany within procurement. Generally, factoring is used to convert open receivables into available funds sooner; it is an established working-capital tool.
How does consolidation in purchasing relate to financing?
By consolidating suppliers and orders, procurement processes can be bundled, forming the basis for considering tail spend and financing concepts. Bundled, transparent purchasing volumes generally make payment-flow planning easier, as many small transactions are combined into manageable units.
Which systems does KTB use around procurement financing?
KTB uses modern ERP and DMS systems for cost-efficient process optimisation and handles international MRO procurement through its own KTB central warehouses. ERP systems generally consolidate purchasing and inventory data and DMS systems manage related documents; a continuous data basis is the usual prerequisite for cleanly assessing payment terms and financing concepts at all.
Our Services
As a specialized provider, we ensure smooth processing with high service quality.