Motorcar Parts of America, Inc. announced it has launched a vendor supply chain financing program designed to enhance payment terms and improve cash flow for both valued vendors and the company. The platform will be administered by a FinTech company, which services suppliers in more than eighty countries in multiple currencies, MPA said. The company said it is engaging a syndicate of supply chain financing institutions to support the extension of terms for its accounts payable.
The online platform will provide suppliers with future visibility for payment of approved invoices and the ability to receive early payment options, with the company maintaining its non-recourse accounts payable treatment.
“The launch of this supply chain financing program complements our strategic focus on neutralizing working capital requirements and opportunities to increase cash flow. We look forward to reporting further milestones as the strategic rollout of this program evolves,” said Selwyn Joffe, chairman, president and chief executive officer.
