Supply Chain Financing (SCF)
It is now estimated that over 75% of the world trade is conducted on Open Account basis led by large corporates. This form of trade is cost saving, efficient and gradually even adopted by smaller corporates.
Once the buyers become comfortable with sellers/suppliers over a period time they opt to Open Account transactions and an agreement is reached with their financier. Due to the cost factor it is becoming more popular among corporates. These transactions are not done on an one off basis, rather it is merely done on a revolving basis. “Buy now and pay later” is the is the best term that describes the “Open Account”.
CIB Finance supports and facilitates SCF transactions to its clients.
SCF Process:
Buyer and CIB Finance (financier) enter into an SCF agreement with the seller.
Upon shipping the goods Seller will raise an Invoice to the Buyer.
Seller submits the invoice to CIB Finance (financier).
Buyer approves the invoice.
CIB Finance pays the seller (discounted amount plus less charges)
At maturity CIB Finance debits Buyers account for the invoice value plus charges.
Our excellent services have established a long-standing relationship with our clients in conjunction with world’s leading financial institutions and our Corporate advisory expertise. Our advisory experts work closely with ICC Banking Commission and TBML professional bodies.
Our clients import/export goods ranging from commodities, apparel, electronic components, consumer appliances and speciality products. Our structured Trade solutions are provided to Asia, Africa, Middle East, Europe and rest of the world.
All our products are subject to ICC rules such as UCP 600, URDG 758, URC 522, URR 725 and ISP 98.
In the event you are looking for a partner to finance or support your business please contact our experts/officers.