Supply Chain Financing
Supply Chain Financing is an arrangement that allows buyers to extend their payment terms to their suppliers and where suppliers can get paid earlier than the usual 60-90 days or even 120 days. This arrangement benefits both buyer and supplier because the buyer can optimize working capital while the supplier generates cash flow, thus lowering risks and disruptions in the supply chain.
Features of Supply Chain Financing:
IT IS NOT A LOAN
Supply Chain Financing is an extension of a buyer’s accounts payable and is not considered a loan. For the suppler, it is a true sale of their receivables.
IT IS NOT FACTORING
Supply Chain Financing is initiated by the buyer who agrees to pay an invoice early for a discount. The buyer benefits by getting a discount off the invoice amount while the supplier benefits by getting paid earlier.
IT IS NOT JUST FOR LARGE COMPANIES
Supply Chain Financing is suitable for companies of all sizes and credit ratings, including SME suppliers.
Benefits to Buyer
- Offers additional working capital financing by extending payment terms
- Allows payment to suppliers without acquiring a loan
- Provides leverage to negotiate favorable terms and discounts with suppliers
- Improves relationships with supplier
Benefits to Supplier
- Improves working capital through cash received earlier than later
- Obtain financing up to 100% of the invoice amount
- Take advantage of competitive interest rates
- More efficient reconciliation of credit and invoice
- No additional security required
Application Criteria
Eligibility
• Accessible to businesses involved in export and import trading and who are legally registered in Singapore.
• Companies who have transactions on open account terms and on a recurring basis (i.e. one-off sales or purchases do not qualify)
*Other eligibility criteria may apply depending on the Financier(s).
Documents to Submit
• NRIC copy (front and back) of directors/ partners/sole-proprietor
• Individual Income Tax Notice of Assessment (NOA) of directors/partners/ sole-proprietor for the last 2 years
• Company bank statements for the last 6 months
• Company financial reports/statements for the last 2 years
• Latest Aging List (Accounts Receivable & Accounts Payable)
• Supporting relevant project/contract documentation.
*Requirements may vary depending on the Financier(s).
Start Your Application Today!
Start Your Application Today!
We help our clients obtain the right financial assistance by objectively assessing their business profile and documents before finding the most suitable financial institutions that could give them the highest loan approval chances.
We also try to get the best deal for our clients by looking for the lowest interest rates in the market, but this could still vary depending on the company’s financial standing and profile.
If your company is not able to qualify for a loan at the moment, we also advise on what areas you can improve in order to qualify in the future.
Get started in 4 easy steps.
1. Fill up the form and submit
2. Engaged by our assigned consultant
3. Consultant presents on the proposed business solution
4. Get your funds upon approval
How It Works
• Upon receiving your inquiry, our assigned Business Consultant will get an overview of your business finance.
• The assigned Business Consultants will brief you on the application process, the best suited solution and credit facilities for your business based on your needs during the scheduled appointment.
• We will assist you with the full process of your application until approval and disbursement.
• During the process, additional documentation required to aid in the application approval might be requested from you.
• Please allow 2 to 4 weeks* for the assessment, submission, negotiation and approval of your application.
• If approved, disbursement takes about 3 to 5 working days upon signing of the Letter of Offer.
Fill up the form
Every client is important to us and we do our best to meet the estimated timeline given.
* Subject to the credit facility proposed and applied for, processing time may take longer or shorter.
