Download - Receivables financing - Standard Chartered
Monetise receivables for future growth
Creating value for Clients
Managing working capital has always been critical to the long-term financial health of
businesses. In today’s challenging economic and financial climate, businesses are looking
towards receivables financing to optimise working capital, reduce buyer credit risk and
enable growth for their business and partners in their ecosystem.
With new technology revolutionising the receivables financing landscape, businesses are
presented with great opportunities to optimise their working capital for future growth.
Standard Chartered Receivables Financing solution is designed to support the flexibility of
client’s business needs and improve business’ competitive value.
It helps client to generate liquidity by monetising receivables. The limited recourse financing
option also allows clients to mitigate buyer credit risk. By having their collections and
reconciliation professionally managed by us, clients can enjoy greater business efficiency.
Financing
Collection & Reconciliation
Buyer Credit Protection
ExportInvoice
Financing
Receivables Financing
With Recourse
Receivables FinancingLimited
Recourse
Factors Chain International
Offer credit protection to over 40 million buyers through
Standard Chartered’s network
Global insurance partners
Multi-jurisdictionalFlexible solutions to meet your business objectives and customer needs
Multi-currency
Cover payment
risks of more than
10,000 buyers
Large programs
via our distribution/
syndication channels
Long tenor
receivables financing
(more than one year
credit term)
Build on clients’
existing or new credit
insurance policies
Benefits Challengesyou may be
facing
Increased buyerpayment risk
Liquidity tiedup in accounts
receivable
Complex collectionsand reconciliation activities across
multiplegeographies
Standard Chartered offers you
Immediate access to cash
Buyer creditrisk protectionacross various geographies
Collections and reconciliation
services
• Funding up to 100%of eligible invoice
• Improved liquidity and working capitalratios
• Enhanced balance sheet efficiencyfrom an investor point of view
• Limited recourse financing solution
• Increasing sales beyond your internal credit appetite
• Follow up andtracking of paymentsfrom buyers
• Efficient sales ledger management viadigital solutions
How it works
Standard Chartered purchases receivables owned by our clients from a selected pool of
buyers. Subject to the terms in the Receivables Purchase Agreement (RPA), Standard
Chartered will provide financing of up to 100% of the value of the eligible invoice.
Straight2Bank
Before program Accelerate availability of In case of buyer commencement, Client funds by submitting default or insolvency,
signs a sales contract with documents to Standard Standard Chartered will Buyer and a Receivable Chartered via assume buyer risk under
Purchase Agreement (RPA) Straight2Bank limited recourse structure with Standard Chartered
Client Sells and ships goods
to buyers
Sales and delivery of goods
Collection and Reconciliation
PaymentFinancing
1 2 3 4
Buyer Pays Standard Chartered
on invoice due date
Standard Chartered Standard Chartered Makes a payment against the Standard Chartered follows up approved invoice to the Client with buyers, track invoices and
provide reconciliation services
Inv
Client collects payment from the buyer60
DSO
days
Client needs A Europe-based multinational electronics company is growing its business extensively in Case Study ASEAN and South Asia where buyers generally request at least 60 days payment tenor.
It’s challenging for this European MNC to grant large buyer limit internally in view of local
currency liquidity, limited understanding of the underlying buyer risk, potentially high risk of
buyer non-payment, and difficulties of buyer collections.
Our solution A multi-geography Receivables Financing facility is offered to each of the client’s subsidiary
in the ASEAN and South Asian countries:
One master receivables purchase agreement is signed to include
client’s subsidiaries across multiple geographies
Up to 100% of invoice value is financed based on buyers’ credit
worthiness and track record
Financing can be made in original invoice currency or one
of G10 currencies
No recourse to seller in case of buyer’s default and/ insolvency
Standard Chartered follows up with buyer payment and reconciles
the payment at both subsidiary and client group level
With this solution, our client is able to
expand their business significantly,
while mitigating counterparty risk,
improve cash conversion, and benefit
from reduced administrative work.
Day67
No Receivables Financing
With Receivables Financing
Shipsgoods
Shipsgoods Issues invoice
Receive financingof up to 100% ofvalue of invoice from Standard Chartered
Issues invoice Inv
0 DSO
days
*
Day7
Day1
Inv
Client Standard Chartered collects paymentfrom the buyer
* conditions apply
Start financing your Receivables with Standard Chartered to drive maximum value for your working capital today
Get in touch with us
From trade finance to cash management, Standard Chartered supports clients’ financial
needs across Asia, Africa, and the Middle East. To learn more about how we can support
your growth in these dynamic regions, please get in touch.
Contact your Standard Chartered relationship manager directly.
Disclaimer
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