Supply Chain Finance
To mitigate payment risk and improve cash flow
We have our flagship web-based system platform to provide Supplier finance to multiple Suppliers of a Buyer collectively.
- ①Your company enters into sales & purchase contract with Supplier
- ②Your company enters into Payment Agreement with SMBC/SPC providing irrevocable, unconditional obligation to pay for its payables on maturity date.
- ③Your Supplier enters into Receivable Purchase Agreement with SMBC/SPC
- ④Your Supplier delivers goods and issues invoice.
- ⑤Your company uploads the invoice data and approves the same on the website. This invoice data can be viewed on the system by Suppliers from the next business day.
- ⑥Your Suppliers log-in to website and offer its receivable for sale to SMBC/SPC to obtain advance payment on date chosen by Supplier. The perfection procedure on this assignment will be completed as per relevant regulations.
- ⑦SMBC/SPC pays to your Suppliers net of discounting interest.
- ⑧Your company pays full invoice amount to SMBC on maturity date.
- ・Extend your payment terms, Days Payable Outstanding (DPO)
- ・Simplify your payment processing via SMBC
- ・Provide liquidity to Suppliers at lower cost of funding based on your confirmed payables and your credit.
- ・Potentially off-balance sheet for Suppliers (subject to certified accountants and auditors approval)
- ・Help your Suppliers obviate the need for currency hedging
- ・Reduce supply chain risk by injecting liquidity in supply chain.