Supply Chain Financing

Supply Chain Financing

The Supplier Finance is a bilateral financing programme through which Standard Chartered Bank offers packaged finance facilities to key suppliers of the customer‟s company. This finance is provided strictly to those suppliers which have a direct linkage to the customer‟s company and is based on the strength of the underlying relationships that the customer has with those suppliers.

  • This will help lower working capital level
  • Administrative costs will be minimized with Standard Chartered Bank which will enable the customer with payments and collections from the customer‟s business partners.
  • Increases partner loyalty.
  • Ability to enjoy price discounts from suppliers
Bank Requirements
  • Master agreement for whichever solution the customer wishes to avail of (Supplier or Buyer Finance).
  • The customer will also need to be in close touch with the Relationship Manager and ensure to advise Standard Chartered Bank of any adverse information pertaining to the customer‟s business partners

Receivable Services

Receivable Services
  • Receivable services is the purchase and subsequent discount of invoices raised by a supplier on selected buyers. This can be with or without recourse to the supplier.Standard Chartered Bank can help to structure without recourse funding using credit insurance to insure receivables purchased, by allocating internal limits on approved buyers or using bank guarantees issued in the buyer’s name.
  • Factoring facilities can be on a disclosed or undisclosed basis. A disclosed facility is one in which the buyer is advised of the purchase of the invoices by the bank from the seller, whereas the undisclosed facility is where the buyer is not advised. The maximum tenor for factoring is normally 120 days from the invoice date. The maximum funding under factoring must not normally exceed 90% of the total invoice value.
  • Mitigate the risks of buyer default
  • Protection against non payment
  • Improve or protect company financial ratios.
  • Better cash flow
Bank Requirements
  • All funding must be covered by Group Account Managers or bank guarantees
  • Must sign Receivable Purchase Agreement
  • Must have an approved Factoring facility

Vendor Pre Pay (VPP)

Vendor Pre Pay (VPP)
  • Vendor Prepay is an offering under Supplier Financing Programme “targeted at Big buyer Small seller relationships”; most often evidenced by high volume of small to medium value transactions. The Bank will purchase such receivables from the vendor and prepay them on a without recourse basis. The Bank retains the right to decide which receivables it would like to purchase and 100% financing of the assigned receivable is possible. The primary obligor under this arrangement would continue to be the Buyer and this would mean predicating risk on the payment ability of the Buyer.
  • Advantages of VPP
For Anchor –

The underlying Anchor needs satisfied by this product are:

  • Integrated payment system also supports their supply chain financing needs
  • Make supply chain cost competitive by reducing procurement cost
  • Resilient supply chain and option to build strategic alliances with suppliers in tough times.
  • Increase days payable outstanding; stretch working capital by extending the credit period
  • Back end integration
For Spoke –

The underlying Supplier needs are:

  • Immediate visibility of approved invoices through Straight2Bank.
  • Quicker access to liquidity.
  • Reduce default risk in balance sheet
  • Localized financing at competitive rates thereby freeing existing credit lines
  • Provide working capital support for sales growth

FI Trade Loans

FI Trade Loans

Under this product, Standard Chartered Bank provides direct or indirect financing to financial institutions (“FI Clients”, (Banks Only)) to fund the provision of credit facilities by such FI Clients to their corporate customers against the Import, Export or Reimbursement obligations of such corporate customers.

In the context of this, the financing to FI client could be offered via the following products,

  • LC Refinancing
  • Trade Advances
  • Refinancing under Reimbursements
  • Pre-export Finance for Financial Institutions
  • Re-negotiation of Export Letters of Credit
  • Post-acceptance financing of Export Bills under LC
  • Financing of avalized collection bills
Supply Chain Financing Supply Chain Financing


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