Supply chain financing
Successful companies realise that managing their supply chains effectively is a great source of competitive advantage.
Ensuring that partners in your supply chains have access to sufficient, steady financing on competitive terms is a critical responsibility. However, this needs to be balanced against corporate objectives of reducing working capital, balance sheet improvement and risk management - that means providing this finance on your own is not often an option.
Comprehensive Suite of Solutions
Supply Chain Finance (SCF) is a partnership with selected corporate clients to provide working capital support for their chosen suppliers and buyers. The strength of the client’s supply chain linkage (i.e. the commercial arrangements and relationships between buyer and seller) is given due consideration in evaluating credit quality of suppliers/buyers.
This is very different from the traditional practice of standalone risk evaluation which was focused only on suppliers/buyers financial strength and historic financial performance.
We organise our SCF offerings under two key suites:
- Supplier Finance Programmes
- Buyer Finance Programmes
Supplier Finance Programmes (SFP)
Partner with us to offer financing support to supply chain partners on your procurement leg (upstream). Based on a clear understanding of the objectives and needs of your organisation and your core suppliers, a supplier finance solution comprising of pre-shipment and post-shipment finance is crafted by us.
The focus at all times is to ensure the best fit with your supply chain strategy and needs.
Under the SFP solution, suppliers can choose to be paid upfront by the bank while the corporate fulfils its payment obligation on the due dates. A large number of clients are today using SFP to improve their working capital management, reduce cost of materials, reduce excessive reliance on documentary trade, rationalise their supplier base and loyalty.
Note to Financial Institutions: Ask about our Financial Institution Supplier Finance Programmes (FISFP)
FISFP is designed for the Financial Institutions that would like to provide supply chain finance solutions to their Buyer/Importer Clients who procure from Asia, Africa and the Middle East. It is most appropriate for those with no or limited geographical reach in Asia, Africa and the Middle East but have clients who have large procurement from these regions. We will provide financing to suppliers in these locations based on arrangements between Standard Chartered and the Financial Institutions partner.
Buyer Finance Programmes (BFP)
Are you growing sales in Asia, Africa or the Middle East and need to ensure your distributors have access to steady and competitive finance? Based on a detailed understanding of the objectives and needs of the buyers/dealers and the client, a tailor-made solution is created to ensure the best fit with your supply chain strategy.
Buyers are assessed primarily based on the strength and effectiveness of supply chain between the client and its distributors/ buyers. We extend banking facilities to buyers solely to finance purchases from the client – i.e. we offer flexible solutions to pay the client on behalf of its buyers/dealers and is repaid on due date by the dealers/buyers.
A fast growing number of clients are using this innovative approach to manage receivables risk, shorten Days Sales Outstanding (DSO), improve liquidity, lower cost of financing, strengthen distributor base and grow revenue.
Interested in our Supply Chain Finance Programmes?
We are a leading global provider of supply chain finance solutions and has an end-to-end suite of well tested solutions for both your suppliers and your distributors.
By partnering with us, you can tailor solutions that match your corporate needs of risk management and liquidity as well as meet your supply chain’s needs of access to sufficient, competitively priced financing. You will have the flexibility to choose the right mix in terms of costs, risk and coverage.
Our cash management solutions provide support to your business, including payments, collections and liquidity management services.
Our renminbi capabilities
We're a pioneer in the renminbi business. Leverage our leading market position and gain access to a range of capabilities to settle your trade in RMB.