When a large buyer takes 90 days to settle, the collector or cooperative that already paid farmers in cash carries the gap. Talangin pays suppliers in full on delivery.
A vegetable supplier delivers on Monday. The goods are used by Thursday. The invoice is still open from October.
A quiet pattern
It is a quiet pattern in almost every fast-growing supply chain. The settlement process sits with the largest institution, and the waiting sits with the smallest business: the collector, the cooperative, the rural trader who has already paid farmers in cash.
What the wait costs
From our own years of transaction and credit data at PasarMIKRO, we estimate that payment delays, expensive bridge borrowing and occasional defaults together erode roughly 30% of annual net income among affected smallholders.
For traders it can bite harder. Margins are often 3 to 4% per trade, while short-term money costs 3 to 5% per month. A supplier waiting 90 days has not simply lost patience. They have lost the next three purchases they could have financed.
A structural gap
None of this requires anyone to act in bad faith. Large buyers need proper verification and approval before they release funds. The gap is structural, and someone has to carry it.
We think it should not be the smallest business in the chain.
How Talangin closes the gap
That is why we built Talangin: we finance verified trades so upstream suppliers are paid 100% on delivery, while the buyer settles on their own schedule.
If this sounds like your supply chain, we would be glad to talk: hello@pasarmikro.id.
Tags
- Supply chain finance
- Talangin
- MSME
- Working capital
