Payable Financing Solutions
Empower your vendors with early payments through tailored financing solutions. Improve liquidity, strengthen supplier relationships, and optimise working capital all backed by buyer credibility and digital ease.
Reverse Factoring is initiated by the buyer to help the sellers receive early payment. The buyer signs a Payment Services Agreement and its sellers assign receivables to the bank via Factoring Agreement and get paid early at a discount rate agreed with the buyer. On the due date, the buyer repays the bank.
Benefits:
- Early payment and liquidity for suppliers
- Competitive rates for all suppliers, based on the credit profile of the buyer
- Simple documentation and end-to-end digital solution.
- No change in buyer's accounting treatment of trade payables*
*Subject to buyer’s internal policies/auditor’s interpretation.
How does Reverse Factoring work?
- Sale & Delivery of goods – Buyer signs the purchase agreement with the supplier and receives the shipped goods.
- Documentation – Buyer submits the accepted invoices digitally to the Bank for discounting
- Discounting – Supplier assigns receivables to the bank under Factoring Agreement & the Bank discounts the accepted invoices submitted by the buyer.
- Repayment – The bank receives payment from the buyer on the due date.
The Bank signs an agreement with the buyer and provides upfront discounting of the accepted invoices to the suppliers. On the due date, the buyer makes payment to the Bank directly.
Benefits:
- Early payment and liquidity for suppliers
- Competitive rates for all suppliers, based on the credit profile of the buyer
- Simple documentation and end-to-end digital solution.
- No change in buyer's accounting treatment of trade payables*
*Subject to buyer’s internal policies/auditor’s interpretation.
How does Payable Financing work?
- Sale & Delivery of goods – Buyer signs the Paying agent & financing agreement with the supplier and receives the shipped goods.
- Documentation – Buyer submits the accepted invoices digitally to the Bank for discounting
- Discounting – The bank discounts the accepted invoices submitted by the buyer.
- Repayment – The bank receives payment from the buyer on the due date.
A unique unsecured facility offered for vendors basis accepted bills/invoices by the Corporate. The buyer and vendor enter into an agreement with the Bank. Limit is assigned to the vendor basis corporate recommendation and requisite due diligence on the vendor. Bills accepted by the Corporate for the vendor are discounted by the Bank and repaid by the Corporate on respective due dates.
Benefits:
- Credit Facility basis corporate tie-up
- Unsecured Facility backed by accepted bills or invoices by the Corporate
- Instant Sanction and Limit Setup on digital platforms.
How does Vendor Bill Discounting work?
- Corporate onboarding – Onboarding through execution of Corporate Arrangement Letter
- Vendor onboarding & limit setup – Vendor Assessment and Limit Setup done basis the credit profile of the vendor.
- Discounting – Corporate acceptance on invoice/bill for Vendor Discounting, with an option of Digital BoE Generation.
- Repayment – The bank receives payment from the buyer on the due date.