MWI in effect purchases the inventory at a set time. As an example, 45 days after receipt of title-retained goods set up a secured area within the customer’s premises under MWI control, the purchase is affected. At that point title passes and MWI purchases the inventory at a discount to re-sell it upon demand or at a set maximum of days thereafter to the customer. But if the customer fails, or cannot purchase the goods with the minimum turnover mandate, MWI has the right to sell back the product to the original vendor, or otherwise, that vendor arranges for its re-sale to another customer.
The unprecedented downtown not only with the U.S. but major world economies has rendered customer financing of products scarce or non-existent. Predominate is floor plan and inventory financing that has all but vanished with many of the most active financial providers exiting the market. MWI has stepped into the void to develop credit logistics financing. It works as a partnership between the seller of goods (and the strength of their credit) with MWI serving as the lender/trader that purchases the inventory at a set date (but supported by a full recourse repurchase agreement) and the ultimate customer.
Credit logistics financing program
Supply Chain Financing