Alliance Financing Group has entered into a Strategic Partnership agreement with Actrade Capital Inc. (Actrade) to provide Alliance's B2B customers with access to Trade Acceptance Drafts (TADs), a unique product specially designed to facilitate short term financing for online and offline purchases of goods and services.

Several features differentiate the TAD Program from other trade payment methods. The TAD Program enables Canadian or U.S. buyers to pay for commercial transactions with payment terms of up to 180 days while suppliers still receive immediate payment. The TAD program also reduces fraud for transactions performed over the Internet and eliminates commercial disputes that may arise.

TAD is ideally suited for high-dollar volume purchases where the supplier would prefer COD payment but offering the buyer payment terms become a critical factor in consummating the transaction. Suppliers benefit with the TAD Program's immediate payment feature, thereby eliminating credit risk and the need to collect the receivable. Plus, with the TAD Program, the buying organization's existing credit lines are preserved.

How the TAD program works

The TAD Program enables Canadian and U.S. buyers of goods or services to pay for purchases with terms up to 180 days while the Canadian or U.S. supplier will receive immediate payment. The size of a TAD transaction can range from ten thousand dollars to several million dollars.

1. Buyer and Supplier both enroll with Actrade. Actrade then approves an unsecured purchasing facility for the Buyer organization allowing them to issue post-dated trade acceptance drafts (TADs) as payment against current invoices that have been issued by the Supplier.

2. Actrade verifies the authentication of the Supplier prior to processing.

3. TADs are issued by the Buyer to (and made payable to) the supplier, thus satisfying the terms of the invoice.

4. Actrade then purchases the TADs from the Supplier; the Supplier receives immediate payment (usually within 48 hours), yet the Buyer maintains open account status.

5. Actrade debits the Buyer's bank account on the due date of each TAD.

Contact Alliance for more information about this unique trade payment method.