In today’s unpredictable economic climate, smartphone distributors in emerging markets face significant challenges with cash flow due to currency fluctuations. Payments to OEMs are made in USD, while sales are in local currencies like the Naira. This instability leads to potential financial losses when converting currencies, making it difficult for distributors to extend credit to retailers, thus impacting sales and profitability.
Sentinel Domino offers an innovative solution designed to stabilize your margins, improve cash flow, and enable you to offer better credit terms to retailers.
How Sentinel Domino Works
Upfront Cash Provision
With Sentinel Domino, you get immediate cash for retailer purchases, based on purchase orders. This advance is provided right after a sale, protecting you from the risks associated with currency devaluation. You can access cash quickly and use it to grow your business, without waiting for delayed payments from retailers.
Flexible Credit Terms
Distributors can offer retailers credit terms of up to 30 days, allowing them ample time to sell their stock. The beauty of this service? Sentinel Domino guarantees repayment within the agreed period, ensuring a predictable cash flow cycle.
Currency Hedging
By paying distributors upfront in USD, Sentinel Domino helps hedge against exchange rate volatility. This feature ensures that your profit margins remain stable, regardless of fluctuations in the currency market.
Key Benefits
For Distributors
- Protection from Currency Risks: With upfront cash in USD, you secure stable margins.
- Improved Cash Flow: Immediate access to cash enables better inventory management and enhances business growth.
- Competitive Advantage: Provide extended credit to retailers without the financial burden, strengthening your market position.
For Retailers
- Extended Credit Terms: Retailers gain more time to sell inventory, which boosts stock turnover.
- Increased Purchasing Power: Retailers can buy larger quantities without the pressure of upfront payments.
For OEMs
- Increased Sales Volume: As distributors are able to stock more products, they place higher volume orders, boosting sales.
- Enhanced Market Penetration: More favorable credit terms mean better product availability and increased market reach.
Why Choose Sentinel Domino?
With Sentinel Domino, distributors can confidently navigate economic instability, offering better terms to retailers and ensuring smooth cash flow management. This innovative service empowers you to grow your business, increase your profitability, and stay competitive in the market, even during times of volatility.
Ready to stabilize your margins and streamline your operations? Get in touch with us today to learn more about how Sentinel Domino can transform your business.