Receivables Finance

To discount trade receivables on a limited recourse basis and accelerate cash flow

Receivables Finance
  1. ①Your company (Supplier) enters into sales contract with Buyer.
  2. ②Your company ships the goods, issues invoice and records account receivables.
  3. ③Your company assigns the account’s receivables to SMBC. The perfection procedure on this assignment will be completed as per relevant regulations.
  4. ④SMBC pays net proceeds after discounting to your company.
  5. ⑤On maturity date Buyer pays to SMBC the full invoice amount.
  • ・Additional source of potentially cheaper financing for your company
  • ・Lower your company's Days Sales Outstanding (DSO) by getting paid in advance. (without the burden of L/C for both parties)
  • ・Potentially Off-balance sheet for your company (Supplier) subject to your certified accountant and auditors approval.
  • ・Obviate need for currency hedging by getting paid early.
  • ・Draft can be used as underlying instrument instead of invoice.
  • ・In case of commercial disputes there may be a recourse to your company