Whether you are a supplier or a buyer, your profitability is affected by your trading partners' ability to raise funds efficiently. If your major buyers want to move from letter of credit terms to open account terms, can you still obtain pre-shipment financing from your bank? Can your sales cycle generate cash fast enough if your major suppliers want to reduce your credit term? If you are facing these challenges, have a chat with our supply chain finance specialists to customise a solution for you.
The supply chain financing solution.
If your suppliers request to move from letter of credit to open account terms, supplier financing may be the solution for you. We can provide pre-shipment financing to them based on your confirmed purchase orders or post-shipment financing with or without recourse.
If your buyers need a longer credit term to raise the funds to pay you for the goods than what you can afford, do not miss out on the incremental revenue that these buyers could otherwise bring in. Let us offer them the buyer financing solution.
This helps you to manage your balance sheet better. It offers quick and reliable financing through the sale of invoices or accounts receivable. Under this programme, we extend financing on approved receivables for up to 90 per cent of invoice values on a recourse or non-recourse basis.
- Convert your receivables to cash
Standard Chartered Bank will purchase your receivables drawn on pre-approved buyers subject to an agreed credit and buyer's limit.
- Protect your receivables against non-payment
We will purchase your receivables on a non-recourse basis, subject to arrangement. This will relieve you of credit risk on the buyer, and (subject to the agreement of your auditors) may improve your balance sheet as it would no longer remain a contingent item.
Because you are offering us your portfolio of receivables and not just single invoices, financing will continue as long as there are fresh unpaid invoices in your portfolio. This way, your quantum of financing grows along with your business.
- Collection and payment follow-up
You may wish to courier invoices and shipping documents directly to your buyer, in which case you need only provide us with copies of invoices as evidence of receivables for purchase. However, if you are not familiar with collection procedures, you may still submit original invoices to Standard Chartered Bank for collection and we will dispatch the documents and follow up on payment.
- Receivables management
Free your staff for more important work by letting Standard Chartered Bank manage your sales ledger for you. We will match incoming payments to invoices, and generate regular reports to help you plan sales efforts.
- Collateral requirements
No physical collateral is required. Financing is against receivables due to you as evidenced by copies of invoices addressed to your buyer.