Receivables Finance

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

Receivables Finance
  1. Your company (Supplier) enters into sales contract with Buyer.
  2. Your company ships the goods, issues invoice and records account receivables.
  3. Your company assigns the account’s receivables to SMBC. The perfection procedure on this assignment will be completed as per relevant regulations.
  4. SMBC pays net proceeds after discounting to your company.
  5. On 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