Supply Chain Finance for Corporates

Size: px
Start display at page:

Download "Supply Chain Finance for Corporates"

Transcription

1 Supply Chain Finance for Corporates Managing risk, finance and processing efficiency in a multi-bank environment Webinar, 30 June 2011

2 Our SWIFT speakers today André Casterman Head of Cash, Trade and Supply Chain David Hennah Market Manager Trade and Supply Chain Marie-Christine Díaz Market Manager Trade and Supply Chain 2

3 Agenda Challenges and trends Payment Obligation Case studies Key benefits Conclusion 3

4 Key objectives in the financial supply chain Making trade receivables and liabilities visible Physical Supply Chain Inventory turnover 1 2 How to improve my purchase-topay process, extend my payment How to reduce my order-to-cash cycle, free 3 terms or get discounts for early What is my credit risk? up cash and get credit payment? as early as needed? 5 How to allocate capital efficiently to support my production process? Supplier Accounts Receivable Working Capital Management Accounts Payable Buyer 4 Where is my cash and my liabilities? How to improve my liquidity forecasts? Treasury management Financial Supply Chain 4

5 Market trends and challenges for Corporates Win-win financing models Working Capital Management Technology evolution Globalisation Documents dematerialisation Workflows automation Emergence of closed 3-corner platforms Integrated supply chain networks Multiple trade partners Multi-bank relationships Payment guarantee Receivables factoring Centralised treasury Vendor Inventory financing Liquidity planning Payables discounting Regulatory impact Credit management (KYC) 5

6 Agenda Challenges and trends Payment Obligation Case studies Key benefits Conclusion 6

7 ICC extends to Open Account In order to enhance the status of the Payment Obligation as an accepted market practice SWIFT is actively collaborating with the International Chamber of Commerce ing Commission (ICC) The ICC has now created an ICC-BPO working group to support the development of a globally accepted standardised environment and establishment of the BPO as a neutral industry-wide practice This in turn will help banks to extend their supply chain finance business in a 4-corner model The working group is co-chaired by the ICC and SWIFT and held its first meeting in Zurich Switzerland in March 2011 Co-chairs are: Dan Taylor (JPMorgan) and André Casterman (SWIFT) Nine banks are participating ICC will appoint a new Vice-Chair to lead the Open Account activities. SWIFT in Trade and Supply Chain 7

8 SWIFT for Supply Chain Finance Working Group and adoption of BPO Working Group Other banks 8

9 Secure and optimise your trade transactions with Payment Obligation A legally binding, valid and irrevocable bank payment obligation based on a minimum set of matched transaction data and being adopted by the ICC An open messaging platform using ISO20022 standards that implements the BPO in a multibank environment Payment Obligation Supplier Open messaging platform Buyer Business-to-business practices A commercial agreement between buyer and seller 9

10 Payment Obligation flows Minimum data subset Order number, Product name & quantity Amount, currency, date Buyer & seller (name, address) BICs of the banks Business Role Supplier/Exporter Recipient bank Obligor bank Buyer/Importer BPO Trade Services Utility (TSU) Tchin Wa manufacturer BBBBCNSH PPPPUS33 Big-Mart distributor Trade processing 1. Contract and Paper documents 2. Electronic data matching Financing services Pre-/post shipment finance Payables finance Payment processing a/c + Guaranteed payment a/c - CNY 100,000 USD 15,370 Fees Risk commitment fee and service charge Risk commitment fee, payment fee and service charge 10

11 Extending your reach through an open and multibank instrument 3-corner closed model 4-corner open model Multi-bank Buyer/ Importer / Service Provider Seller/ Exporter Seller/ Exporter Trade contract / Service Provider Trade contract BPO Buyer/ Importer Buyer/ Importer High on-boarding and KYC costs Limited players driven by dominant corporates Different payment risk mitigation frameworks Limited to post-shipment finance Limited costs thanks to interoperable standards Available to any corporate through its own bank Common payment risk mitigation framework Open to pre/post-shipment finance 11

12 Agenda Challenges and trends Payment Obligation Case studies Key benefits Conclusion 12

13 Supply Chain Finance models facilitated by the Payment Obligation Supply Chain Finance Pre-Shipment Post-Shipment Collateral Confirmed purchase order Shipment documents Approved bills or receivables Buyer Purchase order commitment to pay Import finance Extended payables Supplier Pre-shipment finance (purchase order finance) Post-shipment finance Approved payables finance Receivables purchase Source: adapted from the BAFT-IFSA Product Definitions for Open Account Trade Processing and Open Account Trade Finance, 13 December

14 Case 1: Seller mitigates the risk of non-payment or payment delay Buyer commits to pay the seller (no financing) 2 I need to offer payment assurance to my supplier and confirm the purchase order 1 I want to be certain that I will be paid on time BPO TSU Buyer BPO Obligor BPO Recipient Seller I will substitute for the creditworthiness of my customer and guarantee the payment to the seller s bank (BPO) for a fee 3 4 I can offer the guarantee of payment to my customer based on the BPO issued by the buyer s bank 14

15 Case 2: Buyer mitigates the supplier default risk Buyer supports pre-shipment finance for the supplier 2 I want my businesscritical supplier to increase its financial resilience and will confirm the purchase order BPO 1 I want to access costeffective financing to cover my working capital expenditure TSU Buyer BPO Obligor BPO Recipient Seller 3 I will guarantee the payment (BPO) to the seller s bank upon the confirmed purchase order 4 I will offer preshipment finance to my customer based on the BPO Financing services 15

16 Case 3: Supplier mitigates liquidity risk Supplier gets post-shipment finance 2 I want my businesscritical supplier to increase its financial resilience and will confirm the transport or commercial data BPO TSU 1 I want to be paid as early as possible after the shipment to the buyer Buyer BPO Obligor BPO Recipient Seller I will guarantee the payment (BPO) to the seller s bank based on the submission of compliant transport or commercial data 3 4 I will offer earlier payment to my customer based on the BPO issued by the buyer s bank Financing services 16

17 Case 4: Buyer and optionally seller mitigate their liquidity risks Buyer gets import finance and optionally seller gets post-shipment finance 2 I accept the goods delivered by my seller but would like to pay at a later date BPO 1 I shipped the goods to the buyer and I want to be paid on time, or optionally in advance TSU Buyer BPO Obligor BPO Recipient Seller 3 I will guarantee the payment (BPO) to the seller s bank and will offer the extension of payment terms to my customer for a fee 4 I can offer the guarantee of payment to my customer based on the BPO issued by the buyer s bank, and optionally, I can provide the payment in advance if required Financing services 17

18 Agenda Challenges and trends Payment Obligation Case studies Key benefits Conclusion 18

19 A new payment risk mitigation and financing instrument Contract Contract Contract Buyer Seller Buyer Documents Seller Buyer Documents Seller Documents Application Letter of Credit Advice Documents Data Payment Obligation Data Open Account LC Issuing Documents Issuance LC Advising BPO Obligor Data BPO Recipient Buyer s Seller s Payment services based on paper document processing Payment services based on electronic trade data exchange Payment services limited to payment processing Array of risk, financing and processing services to address both cash management and trade finance needs 19

20 BPO offers the best of both worlds Better than Letter of Credit Electronic presentation of data instead of physical documents Improve quality and objectivity of compliance verification Quicker process as it focuses only on data relevant for financing Can be added at any time, for any amount value Easier access to financing services Better than Open Account Better payment risk mitigation than Standby L/C Facilitate win-win trade relationships Reduced on-boarding and operational costs Enhanced trade transaction processing and reconciliation Can be used as collateral for financing 20

21 BPO offers the best cost vs. risk performance Transaction processing costs (service fees) Low High High Open Account Payment guarantee on Open Account Payment Obligation Payment risk (payment delay or default risk) Letter of Credit Low 21

22 Key benefits of BPO Trade and payment efficiency Trade Finance instrument Letter of credit (L/C) Payment Obligation (BPO) Open account with payment guarantee Market practice UPC 600 (ICC) BPO (ICC) URDG758 Type Cost Manual verification of original paper documents Electronic data submission and matching (TSU) New Manual issuance of documents Speed Supply Chain Finance Payment risk Collateral for financing Finance access and cost Finance risk mitigation Buyer s bank s guarantee to pay Buyer s bank s guarantee to pay Buyer s bank s guarantee to pay, only if default Letter of credit BPO None 22

23 Agenda Challenges and trends Payment Obligation Case studies Key benefits Conclusion 23

24 Illustration Key considerations for your business case Working capital optimisation (CCC) Get paid quicker (from 10 to 5 days), Extended payment terms Better cash allocation to inventory and transportation Reduction of loans and interests, Better financing terms Quality and compliance Improved business relationships Better credit rating and credit risk management Lower rate of litigations Adjacent benefits Financial benefits Business case Costs Operational benefits Trade transaction processing Lower on-boarding costs Improved cash management Lower auditing, collection, accounting effort Lower rate of investigation (~50 EUR/ txn) 24

25 Addressing your challenges today Win-win financing models Working Capital Management Technology evolution Payment Obligation (BPO) Trade Services Utility (TSU) ISO20022 Standards Globalisation SWIFT for Corporates Treasury Cash Management Trade Finance 25

26 Thank you To contact the SWIFT's Trade and Supply Chain team, send us an at 26

The new BPO payment term

The new BPO payment term The new BPO payment term Extending Supply Chain Finance to the PO level André Casterman Head of Corporate and Supply Chain Markets, SWIFT Member of the ing Executive Committee, ICC Co-Chair Obligation

More information

Bank Payment Obligation

Bank Payment Obligation Payment Obligation IIBLP - 2012 Singapore Annual LC Survey Conference David Dobbing SWIFT Standards Agenda Introduction How it works Uniform Rules for Payment Obligation Adoption and Case Studies 2 Introduction

More information

Enhancing Supply Chain Finance with Bank Payment Obligation (BPO)

Enhancing Supply Chain Finance with Bank Payment Obligation (BPO) Enhancing Supply Chain Finance with Bank Payment Obligation (BPO) Peter Chin Sibos 2013 Dubai September 17, 2013 Copyright 2001 2013 Premium Technology, Inc All Rights Reserved BPO Enhancing Open Account

More information

Bank Payment Obligation A new payment method

Bank Payment Obligation A new payment method Bank Payment Obligation A new payment method SWIFT s Corporate and Supply Chain Market Management team supplychain@swift.com July 2016 Digitisation of trade with BPO - a new payment method in your sales

More information

A new start for Supply Chain Finance

A new start for Supply Chain Finance White Paper The Payment Obligation: a new payment term to secure and finance trade A new start for Supply Chain Finance In Q2 2013, the banking industry releases a unique set of legal and technology standards

More information

ISO20022 Trade Services Dashboard Description of business processes. ISO20022 - Trade Services Description of Business Processes

ISO20022 Trade Services Dashboard Description of business processes. ISO20022 - Trade Services Description of Business Processes ISO20022 Trade Services Dashboard Description of business processes 1 Trade Services Description of Procurement: Sub-Functions Tendering Ordering Delivering Invoicing Process for buyer to contact potential

More information

A new start for Supply Chain Finance

A new start for Supply Chain Finance White Paper The Payment Obligation: a new payment term to secure and finance trade A new start for Supply Chain Finance Contents Industry standards are a critical foundation for any competitive eco-system...

More information

Frequently Asked Questions for Banks

Frequently Asked Questions for Banks Bank Payment Obligation (BPO) Frequently Asked Questions for Banks Prepared by the ICC Banking Commission Summary and highlights As the Bank Payment Obligation (BPO) has been adapted by the ICC Banking

More information

Reducing Risk Through Bank-Assisted Open Account

Reducing Risk Through Bank-Assisted Open Account Reducing Risk Through Bank-Assisted Open Account Written by Bottomline Technologies and David Hennah of SWIFT This article was first published by GTNews Despite the recent credit crisis, globalisation

More information

Trade Finance & Liquidity Management. - 5 May 2010 -

Trade Finance & Liquidity Management. - 5 May 2010 - Trade Finance & Liquidity Management - 5 May 2010 - Agenda Trade Finance Concepts & Trends SWIFT Trade Finance Offering BIS Solutions in the Trade Space Managing Liquidity BIS Solutions on Liquidity Mgt.

More information

BANK PAYMENT OBLIGATION: FINANCIAL INSTRUMENTS TO MANAGE RISK IN THE OPEN ACCOUNT TRADE

BANK PAYMENT OBLIGATION: FINANCIAL INSTRUMENTS TO MANAGE RISK IN THE OPEN ACCOUNT TRADE BANK PAYMENT OBLIGATION: FINANCIAL INSTRUMENTS TO MANAGE RISK IN THE OPEN ACCOUNT TRADE J.P. Morgan Michael Quinn, Managing Director, Global Trade Product Management Executive Qatar National Bank Imre

More information

Shift from Letters of Credit to Open Account using Electronic Supply Chain Management Tools

Shift from Letters of Credit to Open Account using Electronic Supply Chain Management Tools Shift from Letters of Credit to Open Account using Electronic Supply Chain Management Tools Christopher A. Conn Senior Business Manager Trade & Supply Chain Management Americas Banking Initiatives SWIFT

More information

A 2010 GLOBAL TRANSACTION BANKING HANDBOOK:

A 2010 GLOBAL TRANSACTION BANKING HANDBOOK: A 2010 GLOBAL TRANSACTION BANKING HANDBOOK: in association with: Platinum sponsor: Gold sponsor: Silver sponsor: www.financial-i.com TRADE & SUPPLY CHAIN FINANCE Honing in on efficiencies The financial

More information

TD Bank, N.A. Global Trade Finance. Strategies for Smart Business Growth & Market Expansion November 6, 2014

TD Bank, N.A. Global Trade Finance. Strategies for Smart Business Growth & Market Expansion November 6, 2014 TD Bank, N.A. Global Trade Finance Strategies for Smart Business Growth & Market Expansion November 6, 2014 1 Topics to be Covered Compliance KYC & KYCC Basic Requirements Goal of Your Trade Provider World

More information

Uniform Rules for Bank Payment Obligations

Uniform Rules for Bank Payment Obligations Uniform Rules for Bank Payment Obligations Version 1.0 Uniform Rules for Bank Payment Obligations Version 1.0 Uniform Rules for Bank Payment Obligations Copyright 2013 International Chamber of Commerce

More information

Supply Chain Finance

Supply Chain Finance Supply Chain Finance Leveraging Modern Technology To Transform Innovative Vietnam Banking Services Gerald Huang Banking Vietnam 2015 Hanoi May 19, 2015 LOCAL BUSINESS ENVIRONMENT Retail Sales grew Services

More information

Supply Chain Finance for Corporates

Supply Chain Finance for Corporates Finance for Corporates Webinar for Experts Extending your Trade Finance options using BPO Webinar, 29 June 2012 Join Teleconference (Phone) Click Country/Region to select country code Complete phone number

More information

An Introduction to the Financial Supply Chain. Mapping the processes and finding the opportunities

An Introduction to the Financial Supply Chain. Mapping the processes and finding the opportunities An Introduction to the Financial Supply Chain Mapping the processes and finding the opportunities Table of Contents Project definition Objectives Scope and approach Key concepts Supply chain definitions

More information

Optimizing Payment Cycles for Trade Payables and Receivables

Optimizing Payment Cycles for Trade Payables and Receivables Optimizing Payment Cycles for Trade Payables and Receivables Houston Treasury Management Association Space City Cash Conference September 2013 Madeline Sprague, HSBC Bank USA, N.A. Global Trade & Receivables

More information

INTERNATIONAL PAYMENT METHODS

INTERNATIONAL PAYMENT METHODS S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L INTERNATIONAL PAYMENT METHODS Broward Economic and Small Business Development Export Readiness Semiar February, 2012 Abby Martinez Vice President

More information

Introduction to the contractual aspects of the BPO

Introduction to the contractual aspects of the BPO Introduction to the contractual aspects of the BPO August 2014 SWIFT s Corporate and Supply Chain team supplychain@swift.com Agenda BPO impacts on contracts Corporate-to-corporate space Corporate-to-bank

More information

I. Details of bottlenecks in the management of trade receivables and liabilities before TSU:

I. Details of bottlenecks in the management of trade receivables and liabilities before TSU: Standardised confirmation of receivables: TSU a new (bank) solution with plenty of potential By Herbert Broens, Head of Export Department Bayer AG Contact: Herbert.broens@bayer-ag.de or Herbert.broens@t-online.de

More information

PURCHASE SALE. Customised Solutioning and Advisory Services. Global Transaction Services Simplified Banking. Customised Solutions

PURCHASE SALE. Customised Solutioning and Advisory Services. Global Transaction Services Simplified Banking. Customised Solutions Customised Solutioning and Advisory Services ING Vysya Bank offers advisory services relating to FEMA, EXIM Policy, URC, UCPDC, URDG, ECA Financing and ECGC through vastly experienced trade finance practitioners

More information

BAFT-IFSA Product Definitions for Traditional Trade Finance Publication Date: May 2011

BAFT-IFSA Product Definitions for Traditional Trade Finance Publication Date: May 2011 BAFT-IFSA BAFT-IFSA Product Definitions for Traditional Trade Finance Publication Date: May 2011 1 BAFT-IFSA Product Definitions for Traditional Trade Finance Section 1: Introduction Banks have long provided

More information

Trade Finance and Supply Chain Update

Trade Finance and Supply Chain Update Treasury Services Trade Finance and Supply Chain Update Presentation to CLACE XXVIII Latin American Conference on Foreign Trade June 3-5 June, 2012 John Hernandez Treasury Services john.hernandez@bnymellon.com

More information

FAQs Trade Finance. ecobank.com

FAQs Trade Finance. ecobank.com FAQs Trade Finance ecobank.com TRADE FINANCE FAQS Q. What are the products used by banks in international trade? A. Cheques, transfers, bill of exchange, documentary bill, documentary collection, letter

More information

Flashcards for Chapter 6 Introduction to Working Capital Management [ ]

Flashcards for Chapter 6 Introduction to Working Capital Management [ ] Flashcards for Chapter 6 Introduction to Working Capital Management [ ] [Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract

More information

Citi s Trade University

Citi s Trade University Citi s Trade University Joint Webinar with World Trade Magazine Retailing and the Financial Supply Chain the Links to Success Thursday, June 21st, 2007 11:00 a.m. to 12:00 p.m. (Eastern Time) This presentation

More information

Frequently Asked Questions Banks...

Frequently Asked Questions Banks... Discussion Paper Prepared by BPO Education Group Frequently Asked Questions Banks...... Highlights n The Bank Payment Obligation is an instrument designed to provide risk mitigation and the basis for financing

More information

SUPPLY CHAIN FINANCE : A new way for trade banks to strengthen customer relationships

SUPPLY CHAIN FINANCE : A new way for trade banks to strengthen customer relationships White Paper SUPPLY CHAIN FINANCE : A new way for trade banks to strengthen customer relationships Business solutions through information technology TM Entire contents 2007 by CGI Group Inc. All rights

More information

Commonwealth Bank Australian Grains Conference

Commonwealth Bank Australian Grains Conference Commonwealth Bank Australian Grains Conference Steve Scott Head of Trade and Working Capital Finance Agricultural Commodities 31 July 2013 Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian

More information

Bank Payment Obligation Corporates Perspective

Bank Payment Obligation Corporates Perspective A new financial supply chain management tool: Bank Payment Obligation Corporates Perspective 10, June 2015 This year s topics include amongst others: What is a Bank Payment Obligation (BPO)? Benefits of

More information

BAFT-IFSA. BAFT-IFSA Product Definitions for Open Account Trade Processing and Open Account Trade Finance

BAFT-IFSA. BAFT-IFSA Product Definitions for Open Account Trade Processing and Open Account Trade Finance BAFT-IFSA Product Definitions for Open Account Trade Processing and Open Account Trade Publication Date: December 13, 2010 (Original) / REVISED May 2011 and Open Account Trade Section 1: Introduction Banks

More information

2007 AFP Trade Finance Survey. Report of Survey Results. Underwritten by

2007 AFP Trade Finance Survey. Report of Survey Results. Underwritten by 2007 AFP Trade Finance Survey Report of Survey Results Underwritten by 2 2006 Association for Financial Professionals, Inc. All Rights Reserved www.afponline.org 2007 AFP Trade Finance Survey Report of

More information

Financial Instruments

Financial Instruments There are two basic forms of Letters of Credit: Standby (SBLC) and Documentary (DLC). Financial Instruments Documentary Letters of Credit can be either Revocable or Irrevocable, although the first is extremely

More information

NEW MODELS FOR SCF THOMAS FAKHOURI BASWARE FINANCING SERVICES

NEW MODELS FOR SCF THOMAS FAKHOURI BASWARE FINANCING SERVICES NEW MODELS FOR SCF THOMAS FAKHOURI BASWARE FINANCING SERVICES SUPPLY CHAIN FINANCE THE WORKING CAPITAL OPPORTUNITY Today s supply chain finance solutions typically: Offer access to advantageous financing

More information

Trade Services Utility (TSU) Bank Payment Obligation (BPO)

Trade Services Utility (TSU) Bank Payment Obligation (BPO) Trade Services Utility () Bank Payment Obligation (BPO) Case Study First Forfaiting on /BPO in the world Vale International S.A. The Bank of Tokyo-Mitsubishi UFJ, Ltd. SWIFT Vale s Challenges and Benefits

More information

THE EVOLUTION OF THE FINANCIAL SUPPLY CHAIN

THE EVOLUTION OF THE FINANCIAL SUPPLY CHAIN THE EVOLUTION OF THE FINANCIAL SUPPLY CHAIN WORKSHOP: EUROPEAN SUPPLY CHAIN FORUM EINDHOVEN UNIVERSITY OF TECHNOLOGY NOVEMBER 2013 By DIRK E. DRIESSENS MAE, MBA 1 The Solutions to Finance Working Capital

More information

Global Transaction Banking Survey 2012

Global Transaction Banking Survey 2012 Global Transaction Banking Survey 2012 Global Transaction Banking Survey 2012 A report from About this survey Executive summary This is the third survey Misys has conducted with Finextra evaluating the

More information

Payment Factories: different ways of achieving payment efficiency. Jonathan Jordan EMEA Payments Market Manager, Citi Transaction Services

Payment Factories: different ways of achieving payment efficiency. Jonathan Jordan EMEA Payments Market Manager, Citi Transaction Services Payment Factories: different ways of achieving payment efficiency Jonathan Jordan EMEA Payments Market Manager, Citi Transaction Services The term Payment Factory is becoming increasingly talked about

More information

Supply Chain Finance Overview. January 2013

Supply Chain Finance Overview. January 2013 1 Supply Chain Finance Overview January 2013 What s in a Name? What is Supply Chain Finance? What does it really mean? Financial Times: Supply chain finance allows a supplier to sell its invoices to a

More information

Holistic Supply Chain Management A Focused Approach to Supply Chain Management through the Lens of Working Capital Management

Holistic Supply Chain Management A Focused Approach to Supply Chain Management through the Lens of Working Capital Management Holistic Supply Chain Management A Focused Approach to Supply Chain Management through the Lens of Working Capital Management A GT Nexus White Paper Executive Summary There is a renewal of interest in

More information

Global Transaction Services

Global Transaction Services Global Transaction Services Cash Management Trade Services and Finance Securities and Fund Services Maximizing the Benefits of Export Letters of Credit: A Risk Mitigation Tool William E. Morrissey Director

More information

Corporate and Investment Banking. Open Account Trade Finance Solutions

Corporate and Investment Banking. Open Account Trade Finance Solutions Corporate and Investment Banking Open Account Trade Finance Solutions Open Account Trade Finance Solutions Standard Bank your trade partner in, for and across Africa Open Account Trade Finance Solutions

More information

Go beyond trade finance automation

Go beyond trade finance automation Trade Services Solution insight Go beyond trade finance automation End-to-end trade services to drive sales and boost margins Turn transaction efficiency into service leadership & product innovation How

More information

SWIFT for Corporates SPIN 2009. Barbara Sacchi. 15 th June 2009

SWIFT for Corporates SPIN 2009. Barbara Sacchi. 15 th June 2009 SWIFT for Corporates SPIN 2009 Barbara Sacchi 15 th June 2009 Business needs Cash visibility has become critical Where is my cash? Can I move my cash? Can I reach all my banks? MT 940 MT 101 Multi-bank

More information

Partnership for Global Reach Trade Products Brochure

Partnership for Global Reach Trade Products Brochure I I Partnership for Global Reach Trade Products Brochure I I INTRODUCTION Whether you are a buyer or seller of goods or services, we at Hong Leong Bank, with our extensive network of agent banks worldwide

More information

ROLE OF TRADE FINANCE

ROLE OF TRADE FINANCE Volume 3, Issue 5 (May, 2014) Online ISSN-2277-1166 Published by: Abhinav Publication Abhinav National Monthly Refereed Journal of Research in ROLE OF TRADE FINANCE Hemanshu Kapadia Proprietor, Practicing

More information

Bank Payment Obligations (BPOs) Basics for Corporates

Bank Payment Obligations (BPOs) Basics for Corporates Bank Payment Obligations (BPOs) Basics for Corporates What you need to know in order to start replacing Standby Letters of Credit and/or Documentary Letters of Credit (LCs) with the BPO or BPO-Plus process

More information

Supply Chain Finance Software Vendors: GT Nexus

Supply Chain Finance Software Vendors: GT Nexus Supply Chain Finance Software Vendors: GT Nexus 2013 Company Name. All rights reserved. Reproduction of this report by any means is strictly prohibited. TABLE OF CONTENTS WHY SUPPLY CHAIN FINANCE?... 4

More information

Solution Summary: Payments centralisation

Solution Summary: Payments centralisation Solution Summary: Payments centralisation Companies of all sizes, across a wide range of industries, profiles and geographies are increasingly seeking to centralise business support functions such as finance,

More information

Trade Finance Operations

Trade Finance Operations Trade Finance Operations A Solutions View on Traditional Trade Products Beirut, Lebanon, March 2010 Alexander R. Malaket, CITP, President OPUS Advisory Services International Inc. Summary Trade finance

More information

SUPPLY CHAIN FINANCE Promoting Sales Growth through Innovative Financing

SUPPLY CHAIN FINANCE Promoting Sales Growth through Innovative Financing SUPPLY CHAIN FINANCE Promoting Sales Growth through Innovative Financing Zurich 19 October 2015 Agenda Presentation 30 min Panel Discussion 30 min Q&A with the Audience 30 min - 2 - Introduction of Panelists

More information

CUSTOMER JOURNEY GUIDE - TASDEER FINANCIAL SERVICES

CUSTOMER JOURNEY GUIDE - TASDEER FINANCIAL SERVICES CUSTOMER JOURNEY GUIDE - TASDEER FINANCIAL SERVICES APPLY Submit an official request letter and all the requested documents (for ) 1 Day Client Meets with TASDEER RM Discovery Your Journey with TASDEER

More information

Integrating Payables and Receivables to Unlock Working Capital

Integrating Payables and Receivables to Unlock Working Capital Integrating Payables and Receivables to Unlock Working Capital Approved for 1 CTP / CCM recertification credit by the Association of Financial Professionals May 2009 Introductions David Kunz Treasury Management

More information

Introduction to and Comments on Bank Payment Obligation (BPO) T. O. Lee Consultants Ltd. 10 Westbury Court Richmond Hill, Ontario L4S 2L1 Canada

Introduction to and Comments on Bank Payment Obligation (BPO) T. O. Lee Consultants Ltd. 10 Westbury Court Richmond Hill, Ontario L4S 2L1 Canada Introduction to and Comments on Bank Payment Obligation (BPO) T. O. Lee Consultants Ltd. 10 Westbury Court Richmond Hill, Ontario L4S 2L1 Canada www.tolee.com Email: experts@tolee.com 0 Copyright 2013

More information

FusionBanking Trade Innovation Software overview. Operational excellence in trade finance. Trade automation to transform service

FusionBanking Trade Innovation Software overview. Operational excellence in trade finance. Trade automation to transform service FusionBanking Trade Innovation Software overview Operational excellence in trade finance Trade automation to transform service To ensure continued success in Asia and to support our domestic clients more

More information

Supply chain finance: From myth to reality

Supply chain finance: From myth to reality 22 McKinsey on Payments October 2010 Supply chain finance: From myth to reality Trade finance is a cost-intensive and highly specialized business dominated by a small number of global banks. Given the

More information

INTERNATIONAL FINANCIAL SETTLEMENTS

INTERNATIONAL FINANCIAL SETTLEMENTS INTERNATIONAL FINANCIAL SETTLEMENTS Dr Katarzyna Sum Chair of International Finance Warsaw School of Economics Lecture information The material for the lectures is available on my website http://akson.sgh.waw.pl/~ksum/

More information

Innovative Trade Finance Solutions for SMEs

Innovative Trade Finance Solutions for SMEs Innovative Trade Finance Solutions for SMEs Murali Subramanian EVP, Transaction Banking Head 20 th April 2011 Overview of ADCB Incorporated in 1985 following a merger of 3 banks Owned 64.8% by Government

More information

SWIFTNet Trade Services Utility

SWIFTNet Trade Services Utility SWIFTNet Trade Services Utility Helping banks meet the supply chain challenge Slide 1 SWIFTNet Trade Services Utility Setting the scene What is the TSU? TSU Enabled Services Current Status Slide 2 Setting

More information

International Services.

International Services. Business International Services. Going the extra mile for your business. Contents. Sending and receiving money Sending money abroad...1 International Moneymover...1 International drafts...1 Receiving money

More information

Trade Payables Solutions

Trade Payables Solutions Trade Payables Solutions With GSCF, you can improve your working capital without compromising relationships in your supply chain. Our Trade Payable Solutions allow you to extend your DPO with your Suppliers;

More information

CHAPTER 9: BANKING DOING BUSINESS IN GREATER PHOENIX, U.S.A. 9.1: THE U.S. BANKING SYSTEM 9.2: ESTABLISHING A U.S. BANK ACCOUNT

CHAPTER 9: BANKING DOING BUSINESS IN GREATER PHOENIX, U.S.A. 9.1: THE U.S. BANKING SYSTEM 9.2: ESTABLISHING A U.S. BANK ACCOUNT CHAPTER 9: BANKING 9.1: THE U.S. BANKING SYSTEM Unlike banks in many countries, U.S. banks are not government-owned and managed. They provide deposit facilities for the general public, provide loans for

More information

Index. call options 102 cap and floor options 103 capital goods 125 capital markets 145 capital risk 111 cargo insurance 16

Index. call options 102 cap and floor options 103 capital goods 125 capital markets 145 capital risk 111 cargo insurance 16 Index acceptance 50 accessory obligation 71 Act of God 24 advance payment 35 advance payment guarantee 77 adverse business risks 20 advising bank 48, 73 air waybill 43 amendments 55 annuities 150 anti-corruption

More information

Click to edit. style. Tom Tsaganos Speaker VP, Commercial Bank Foreign Exchange. Lisa Spano Speaker VP, Treasury Services, Trade Finance and Logistics

Click to edit. style. Tom Tsaganos Speaker VP, Commercial Bank Foreign Exchange. Lisa Spano Speaker VP, Treasury Services, Trade Finance and Logistics Sept / Oct 2007 T R E A S U R Y & S E C U R I T I E S S E R V I C E S Click to edit Solutions to Help You Execute: A Discussion Master with title Experts in Foreign Exchange and Trade style Charles Darwall

More information

Get ahead of the curve in global trade finance

Get ahead of the curve in global trade finance Get ahead of the curve in global trade finance When your customer says, I want my bank to Can your bank meet the need? We have the ability to turn to CGI and ask them to modify the solution or to roll

More information

F101: Evaluating Payment Solutions

F101: Evaluating Payment Solutions F101: Evaluating Payment Solutions Presenters: Erik van Winkel, Manager, Edgar, Dunn & Company Steven van der Poel, EMEA Travel Manager, NetApp Agenda Erik van Winkel Global vs. local travel payment needs

More information

Raise the anchor. FEATURE 4 March 2015. One of the most reliable growth stimuli for SMEs is value chain financing.

Raise the anchor. FEATURE 4 March 2015. One of the most reliable growth stimuli for SMEs is value chain financing. Raise the anchor FEATURE 4 March 2015 One of the most reliable growth stimuli for SMEs is value chain financing. Qamar Saleem, Martin Hommes and Aksinya Sorokina explain how this works and why it is good

More information

SWIFT e-invoicing consultation

SWIFT e-invoicing consultation SWIFT e-invoicing consultation October 2008 Legal Notices Copyright SWIFT 2008. All rights reserved. You may copy this publication within your organisation. Any such copy must include these legal notices.

More information

Xynergy Commercial Capital LLC

Xynergy Commercial Capital LLC Xynergy Commercial Capital LLC How Can Work For You The Problem Short of cash and must pay suppliers, lease, bills and salaries? No need for stress, get your payments in advance for your invoices and pay

More information

Global Transaction Services

Global Transaction Services 0 Global Transaction Services Cash Management Trade Services and Finance Securities Services Fund Services Unlocking the Benefits of Export Letters of Credit Phyllis Kai-Kee Director/Global Product Manager

More information

9. LETTERS OF CREDIT General Letter of Credit Issuing Bank

9. LETTERS OF CREDIT General Letter of Credit Issuing Bank 9. LETTERS OF CREDIT 9.1 General (a) Clearing Members may use a letter of credit drawn in compliance with these Procedures and the Clearing Membership Agreement ("Letter of Credit") to satisfy Original

More information

The Bolero Multi-Bank Solution - Automation of Trade Finance Instruments

The Bolero Multi-Bank Solution - Automation of Trade Finance Instruments The Bolero Multi-Bank Solution - Automation of Trade Finance Instruments The trend of corporates implementing a multi-banking trade finance solution is being driven by a very compelling business case.

More information

Trends in Supply Chain Finance

Trends in Supply Chain Finance Trends in Supply Chain Finance SupplierPay Meeting 17 November 2014 David Gustin Managing Director, Global Business Intelligence Co-founder, Trade Financing Matters Copyright 2014 Global Business Intelligence.

More information

2011 Meridian Partners Limited. Meridian Partners Trade Financing

2011 Meridian Partners Limited. Meridian Partners Trade Financing Meridian Partners Trade Financing About Us Meridian Partners provides you with the legal requirements of a registered office address in Hong Kong, a corporate secretary, telephone, fax and mailing services.

More information

WELCOME! Introduction. Celebrating. &PrimeRevenue. PrimeRevenue Hong Kong. 2012 PrimeRevenue, Inc.

WELCOME! Introduction. Celebrating. &PrimeRevenue. PrimeRevenue Hong Kong. 2012 PrimeRevenue, Inc. WELCOME! Introduction Celebrating Ethe Factor Network establishment of &PrimeRevenue PrimeRevenue Hong Kong 2012 PrimeRevenue, Inc. Global Reach Today, we transact business in 50 countries Our platform

More information

FORFAITING. A useful tool in Trade Finance

FORFAITING. A useful tool in Trade Finance 1. What is Forfaiting? 2. Which instruments are eligible for forfaiting? 3. Why does the Exporter like the forfaiting tool? 4. What is the advantage for the Importer? 5. Any advantage for the Importers

More information

Telecom Expense Management

Telecom Expense Management Telecom Expense Professional Cost Group Ltd. Control your costs Manage your assets Transform your business Visit us online: www.pcmg.co.uk/tem Your Challenges. For most companies, fixed and mobile communications

More information

Adding Value in Corporate Trade and Supply Chain Finance

Adding Value in Corporate Trade and Supply Chain Finance Adding Value in Corporate Trade and Supply Chain Finance Kyrgyzstan Trade Market Major Exports US$2.294BN (2012 est) Gold, Cotton, Wool, Garments, Meat, Tobacco; Mercury, Uranium, Hydropower; Machinery;

More information

When Treasury Meets Trade Trade finance as a key working capital optimization tool.

When Treasury Meets Trade Trade finance as a key working capital optimization tool. FEBRUARY 2012 When Treasury Meets Trade Trade finance as a key working capital optimization tool. Chris Bozek, Managing Director, Head of Global Trade and Supply Chain Products, Bank of America Merrill

More information

Exploring Exports: Financing Your Export Sales

Exploring Exports: Financing Your Export Sales Exploring Exports: Financing Your Export Sales Presented by: Scott K. Hibbard, Vice President International Trade Finance February 9, 2012 Agenda Overview: Global Trade Trends Trade Cycle, Trade Risks,

More information

Transform Invoice Management with a Hybrid of Cloud and On-Premise Software

Transform Invoice Management with a Hybrid of Cloud and On-Premise Software SAP Brief SAP Business Suite SAP Invoice Management Objectives Transform Invoice Management with a Hybrid of Cloud and On-Premise Software Achieve a higher level of performance Achieve a higher level of

More information

SMART PAYMENTS - BETTER DECISIONS BANK ACCOUNT MANAGEMENT E BANK ACCOUNT MANAGEMENT BEST PRACTICES IN BANK ACCOUNT MANAGEMENT. www.tis.

SMART PAYMENTS - BETTER DECISIONS BANK ACCOUNT MANAGEMENT E BANK ACCOUNT MANAGEMENT BEST PRACTICES IN BANK ACCOUNT MANAGEMENT. www.tis. SMART PAYMENTS - BETTER DECISIONS E BANK ACCOUNT MANAGEMENT BANK ACCOUNT MANAGEMENT BEST PRACTICES IN BANK ACCOUNT MANAGEMENT www.tis.biz CONTENT 1. Introduction...2 2. Corporates and the ebam Project...2

More information

Improving Accounts Payable Processes to Deliver Bottom-Line Cost Savings

Improving Accounts Payable Processes to Deliver Bottom-Line Cost Savings VISA COMMERCIAL SOLUTIONS visa accounts payable automation white paper Improving Accounts Payable Processes to Deliver Bottom-Line Cost Savings Author: Nick Marchetti, Senior Business Leader, Visa Inc.

More information

global trade management

global trade management whitepaper global trade management Improve Working Capital & Streamline Global Trade WHITEPAPER Global trade management 2 about Economies of the world are becoming increasingly global in nature. This is

More information

Contents. Why is export finance needed? What types of export finance are available? Which currencies can be borrowed? How are risks managed?

Contents. Why is export finance needed? What types of export finance are available? Which currencies can be borrowed? How are risks managed? Contents Why is export finance needed? What types of export finance are available? Which currencies can be borrowed? How are risks managed? What terms of interest apply? Is state-supported financing a

More information

Contract Management The Mavericks Won t Like This!

Contract Management The Mavericks Won t Like This! Contract Management The Mavericks Won t Like This! Keith Wallis How Much Did That Project Cost? Real Life Example Original contract amount $500K Variations scope changes not visible Total variations =

More information

Citi. Integrated Freight Processing for the U.S. Government. A powerful e-solution for managing and paying transportation-related expenses

Citi. Integrated Freight Processing for the U.S. Government. A powerful e-solution for managing and paying transportation-related expenses Citi Integrated Freight Processing for the U.S. Government A powerful e-solution for managing and paying transportation-related expenses Finally a better way to receive, audit and pay freight invoices

More information

Accounts Payable Automation

Accounts Payable Automation Accounts Payable Automation Dataline - a brief history Launched as privately owned company, based in Chatswood, Sydney. Became a leading proponent of distributed non-impact MICR technology We remain the

More information

Your Logo Here Creative Ways to Finance Your Working Capital Needs. February 22, 2012 2/24/2012

Your Logo Here Creative Ways to Finance Your Working Capital Needs. February 22, 2012 2/24/2012 Your Logo Here Creative Ways to Finance Your Working Capital Needs February 22, 2012 1 Trade Finance Tools Classic Trade Products: Letters Of Credit, Collections, Open Account Enhanced Trade Products:

More information

THE WORKING CAPITAL CYCLE IN INTERNATIONAL TRADE

THE WORKING CAPITAL CYCLE IN INTERNATIONAL TRADE THE WORKING CAPITAL CYCLE IN INTERNATIONAL TRADE Introduction The working capital cycle is the period of time which elapses between the points at which cash is used in the supply/production process, to

More information

Southern California AFP Luncheon

Southern California AFP Luncheon Working Capital Unharness your Cash Flow Southern California AFP Luncheon Michael Diekmann Director, Bank of America Merrill Lynch October 10, 2014 Understanding Working Capital Working Capital... = Current

More information

PAYMENT TERMS AND EXPORT FINANCE RESOURCES

PAYMENT TERMS AND EXPORT FINANCE RESOURCES GENERAL INFORMATION A successful export transaction starts with the negotiation of a sales contract and ends with a timely payment. The buyer/importer gets the product they want and pays the seller/exporter

More information

The CFO s motivation...

The CFO s motivation... The CFO s motivation... What do you consider to be the key financial priorities for your organization for the year ahead? Strategic Priorities 35% 48% 45% 43% 72% Improving operational efficiency Optimising

More information

Kuehne + Nagel Investor Day. April 27, 2007 Otto Schacht Senior Vice President, Global Seafreight Kuehne + Nagel International AG

Kuehne + Nagel Investor Day. April 27, 2007 Otto Schacht Senior Vice President, Global Seafreight Kuehne + Nagel International AG April 27, 2007 Otto Schacht Senior Vice President, Global Seafreight Kuehne + Nagel International AG Agenda Market trends / challenges Customer and Kuehne + Nagel IT solutions Customers initiatives 27/4/07

More information

Riccardo Crestani Corporate Finance RISK MANAGEMENT IN TRADE FINANCE: TOOLS TO CREATE VALUE

Riccardo Crestani Corporate Finance RISK MANAGEMENT IN TRADE FINANCE: TOOLS TO CREATE VALUE Riccardo Crestani Corporate Finance RISK MANAGEMENT IN TRADE FINANCE: TOOLS TO CREATE VALUE KING S COLLEGE London 27 th July 2016 Summary TRADE FINANCE (Financial point of view) WORKING CAPITAL (Maturity)

More information

NEW YORK INDEPENDENT SYSTEM OPERATOR, INC. WORKING CAPITAL POLICY AND PROCEDURE

NEW YORK INDEPENDENT SYSTEM OPERATOR, INC. WORKING CAPITAL POLICY AND PROCEDURE Note: This Policy is an interim policy which clarifies the provisions for working capital funding in the current NYISO tariffs, as delineated below. This Policy is subject to change, subsequent to FERC

More information

WORKING CAPITAL & CASH MANAGEMENT

WORKING CAPITAL & CASH MANAGEMENT WORKING CAPITAL & CASH MANAGEMENT STRATEGIES TO PROTECT THE FINANCIAL POSITION OF YOUR BUSINESS PRESENTATION BY HM Nhende 1 Overview of the Presentation Definition of Working Capital Components of Working

More information