Receivables Financing Driving maximum value for your working capital

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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