Supplier Finance is the financing of suppliers against assignment of their monetary claims to a Buyer. The Bank buys monetary claims of the Supplier to its debtor.
Basic requirements to the Supplier:
- Shipments shall be carried out under a supply contract, services rendered or purchase (not escrow, commission or consignment, etc.)
- The agreement must provide deferred payment terms (not exceeding 150 days)
- Form of payments must be non-cash only
- The amount of financing does not exceed 90% of the shipment
- The Supplier assigns its receivables to the Bank with the signing of an Agreement of financing with assignment of monetary claim
- After signing the Agreement the Supplier receives financing (up to 90% of the receivables due from the Buyer).