SUPPLY CHAIN FINANCING

With our innovative extensive range of product and the expertise of our professional bankers, we are committed to help our clients reaches their dream with our tailored made banking solution.

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Also known as Supplier Finance or Reverse Factoring, Supply chain finance is a set of solutions that optimizes working capital and provides liquidity to businesses. Supply chain finance provides short-term credit that optimizes working capital for both the buyer and the seller. Suppliers can sell their invoices or receivables at a discount to banks or other financial service providers, often called factors. In return, the suppliers get faster access to the money they are owed, enabling them to use it for working capital, while buyers generally get more time to pay. Instead of relying on the creditworthiness of the supplier, the bank deals with the buyer – usually a less risky prospect.

For example, the buyer will attempt to delay payment as long as possible, while the seller seeks to be paid as soon as possible. Supply chain finance works especially well when the buyer has a better credit rating than the seller and can therefore access capital at a lower cost. The buyer can leverage this advantage to negotiate better terms from the seller such as an extension of payment terms, which enables the buyer to conserve cash or use it for other purposes. The seller benefits by accessing cheaper capital, while having the option to sell its receivables to receive immediate payment.

Services included:

  • Extension of Accounts Payable terms
  • Inventory finance
  • Payables discounting
Our solutions aim to enhance working capital by connecting different transactions that moves through the supply chain.

For example, the buyer will attempt to delay payment as long as possible, while the seller seeks to be paid as soon as possible. Supply chain finance works especially well when the buyer has a better credit rating than the seller and can therefore access capital at a lower cost. The buyer can leverage this advantage to negotiate better terms from the seller such as an extension of payment terms, which enables the buyer to conserve cash or use it for other purposes. The seller benefits by accessing cheaper capital, while having the option to sell its receivables to receive immediate payment.