The new BPO payment term

Size: px
Start display at page:

Download "The new BPO payment term"

Transcription

1 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 Project, ICC EPCA, Brussels, 22 March 2013

2 Today s SCF offerings start when Supply Chains are over Extended SCF opportunity Current SCF scope Ordering Production Delivery Invoice Goods Acceptance Initiation Purchase Order Certificates Transport Invoice Issuance Invoice Approval Higher risk assurance & financing services Low risk No risk (Early) services 2

3 Trade contract Today s SCF offerings are offered within closed models 3-corner closed model 4-corner interoperable model Too many portals! Trade contract s s Industry Standards works with own bank s Multi-bank standards s 3

4 Introducing a new payment term for corporates BPO is a new payment term in the ICC Int l Sales Model Contract LC Established B2B practices BPO OA Purchase Orders Transport docs Certificates Invoices C2B contracts facilitating the provision of risk & financing services UR BPO rules govern an irrevocable and conditional electronic inter-bank payment obligation s' ICC SWIFT 's An industry-wide transaction matching platform that implements the BPO using ISO A legally binding rulebook owned by the ICC and based on ISO standards 4

5 The Obligation (BPO) A BPO is an irrevocable undertaking given by a bank to another bank that payment will be made on a specified date after successful electronic matching of data according to an industry-wide set of rules. ICC Uniform Rules for Obligations Therefore, a BPO offers: An assurance of payment Risk mitigation for all parties Possible use as collateral for finance An alternative instrument for trade settlement 5

6 Industry standards Developed by international standardisation bodies Trade Finance instruments (E.g. UCP 600, URDG 758, ISP98, URC 522, URBPO) MT standards (for L/Cs, Demand Guarantees, Collections) ISO standards (for BPO) Industry standards are industry-owned and technology-neutral. They offer a dependable legal and operational framework. 6

7 Advice Data Data BPO combines the best of both worlds Contract Contract Contract Application Letter of Credit Obligation Open Account LC Issuing Issuance LC Advising Obligor Data Recipient s s services based on paper document processing services based on electronic trade data exchange services limited to payment processing Array of risk, financing and processing services to address both cash management and trade finance needs 7

8 New accelerated and dematerialised bank services Ordering Production Delivery Invoicing Goods & Acceptance cash mgmt Purchase Order (PO) Certificates Transport Invoice Issuance Invoice Approval risk mitigation Pre-shipment finance Post-shipment finance Early payment processing Transforming open account payments into SCF opportunities 8

9 The BPO builds upon electronic data matching Matching of contract data BPO is established A 1) Sign contract (PO) 2) PO data 3) SO data TSU 4) Match PO/SO data & confirm B Matching of data A 5) Datasets TSU 6) Match requested datasets & confirm 5) Datasets B BPO is due Transfer of funds A 7) Debit buyer FIN 9) Pay seller B Trade is settled 8) Transfer funds PO= Purchase Order; SO= Sales Order 9

10 Live BPO banks s with live transactions + 1 corporate case study Live s Region Intra / Interbank transations Locations of live corporate supply chains Corporate case study of China APAC Intra in China Inter CN Ito Yokado s Chinese suppliers of Tokyo Mitsubishi UFJ APAC Intra Inter JP, HK, CN, TW Ito Yokado Korea Exchange Standard Chartered Siam Commercial APAC Inter KR Automotive industry (in development) EMEA Intra BE, OM BP Chemicals Octal Plastics APAC Inter TH PTT Polymer Marketing Co (in development) 10

11 Thank you To contact SWIFT's Trade and Supply Chain team, send us an at Join our LinkedIn group Supply Chain on SWIFT 11

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

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

Is het nieuwe, digitale betalingsinstrument, The Bank Payment Obligation (BPO), de toekomst in de internationale handel?

Is het nieuwe, digitale betalingsinstrument, The Bank Payment Obligation (BPO), de toekomst in de internationale handel? Is het nieuwe, digitale betalingsinstrument, The Bank Payment Obligation (BPO), de toekomst in de internationale handel? Marc van Maanen en Hugo Verschoren NTHR-Symposium Elektronisch Contracteren 11 april

More information

Supply Chain Finance for Corporates

Supply Chain Finance for Corporates Supply Chain Finance for Corporates Managing risk, finance and processing efficiency in a multi-bank environment Webinar, 30 June 2011 Our SWIFT speakers today André Casterman Head of Cash, Trade and Supply

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 Contents Industry standards are a critical foundation for any competitive eco-system...

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

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 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

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

BANK PAYMENT OBLIGATIONS The Way Forward in International Trade? Geneva, 14 November 2013

BANK PAYMENT OBLIGATIONS The Way Forward in International Trade? Geneva, 14 November 2013 BANK PAYMENT OBLIGATIONS The Way Forward in International Trade? Geneva, 14 November 2013 Agenda Welcome: Caroline Ming (ACCE) Introduction and panel moderator: Alexander Troller (LALIVE) Presentations:

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

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

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

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

TSU/BPO: Is paper still essential for Trade transactions?

TSU/BPO: Is paper still essential for Trade transactions? /BPO: Is paper still essential for Trade transactions? SIBOS Boston - October 1, 2014 Daisuke Kamai Head of e-trade Product, Transaction Banking Division, The Bank of Tokyo-Mitsubishi UFJ, Ltd. Copyright

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

Engaging new perspectives on supply chain business in Asia

Engaging new perspectives on supply chain business in Asia Engaging new perspectives on supply chain business in Asia Michael Kang, Korea Exchange Bank Daisuke Kamai, Bank of Tokyo Mitsubishi Xiong Yuanmeng, Bank of China Alan Wong, SWIFT Agenda Setting the scene

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

SWIFT s Corporate and Supply Chain Market Management team

SWIFT s Corporate and Supply Chain Market Management team Digitising Trade Finance using ISO 20022 Facilitating multi-banking in supply chain finance to mitigate payment risks and enable financing opportunities using ISO 20022 standards and the BPO SWIFT s Corporate

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

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

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

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

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

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

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 & 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

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

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

The BPO & Friends have a Stranglehold on the LC and will soon finally lay it to rest.

The BPO & Friends have a Stranglehold on the LC and will soon finally lay it to rest. The BPO & Friends have a Stranglehold on the LC and will soon finally lay it to rest. Alas poor Letter of Credit! I knew him well, Reader: a fellow of infinite costliness and complexity, but most excellent

More information

GUIDE TO INTERNATIONAL PAYMENT METHODS. Making international trade accessible to every business

GUIDE TO INTERNATIONAL PAYMENT METHODS. Making international trade accessible to every business GUIDE TO INTERNATIONAL PAYMENT METHODS Making international trade accessible to every business 2 As the globe is becoming smaller and international trade is becoming easily accessible, the issue of moving

More information

CERTIFIED TRADE FINANCE & BANKING Join Banks in Prestigious Designation

CERTIFIED TRADE FINANCE & BANKING Join Banks in Prestigious Designation CERTIFIED TRADE FINANCE & BANKING Join Banks in Prestigious Designation ADVANCED STUDIES TRAINING COACHING - ASSIGNMENT Be the Top Professional in - Trade Finance & Banking Specialisation in : SWIPE YOUR

More information

Want to start or grow your import/export business? Learn how from industry experts. View our training schedule. International Payment Methods

Want to start or grow your import/export business? Learn how from industry experts. View our training schedule. International Payment Methods Want to start or grow your import/export business? Learn how from industry experts. View our training schedule International Payment Methods As the globe is becoming smaller and international trade is

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

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

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

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

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

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

Understanding the Risks of Standby LCs

Understanding the Risks of Standby LCs Understanding the Risks of Standby LCs Global Transaction Services Cash Management Trade Services and Finance Securities and Fund Services Understanding the Risks of Standby Letters of Credit and Guarantees

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

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

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

Citi s Capability for SWIFT MT798

Citi s Capability for SWIFT MT798 Citi s Capability for SWIFT MT798 Frequently Asked Questions Transaction Treasury and Services Trade Solutions 2 Treasury and Trade Solutions What is the MT798? SWIFT s Trade for Corporates, the MT798,

More information

Diagnostic. Short term finance constraints in Turkey

Diagnostic. Short term finance constraints in Turkey Diagnostic Short term finance constraints in Turkey Short term finance instruments and methods Banks have long provided trade finance and working capital services processing information, managing documents,

More information

Pricing Guide from Regulators

Pricing Guide from Regulators Pricing Guide from Regulators Version 2013-09 Z1 RMB Account Service Trade Service Rate Min. Max. Z3 Rate Min. Max. Z1.1 Outward Remittance Z3.1 Draft Z1.1.1 Via HVPS - - Handling Fee: Amount

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

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

SWIFT supporting the corporate market

SWIFT supporting the corporate market SWIFT supporting the corporate market Elie Lasker SWIFT Journée SWIFTNet pour les entreprises - Reuters Utsit, Paris, 12th February Slide 1 Journée SWIFTNet pour les entreprises - Reuters Utsit, Paris,

More information

TradeWiz Opinion on BPO

TradeWiz Opinion on BPO TradeWiz Opinion on BPO Amsterdam 2012 The hidden opportunity of the Bank Payment Obligation In their role as a trusted partner in the area of Trade Finance, TradeWiz consultants often find themselves

More information

www.tradefinance.training Training Online A new era is emerging in the world of Trade Finance. Technology continues to transform the environment and reduce the need for paper. In such a world it is important

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

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

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

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

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

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

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

ISO development Payment and Trade Messaging Standards Interoperability

ISO development Payment and Trade Messaging Standards Interoperability ISO 20022 development Payment and Trade Messaging Standards Interoperability Bangkok, 25 March 2015 Kiyono HASAKA Payments and Cash Management SWIFT Standards Asia Pacific Agenda ISO 20022 setting the

More information

Educational report. Observations on the Evolution of Trade Finance and Introduction to the Bank Payment Obligation

Educational report. Observations on the Evolution of Trade Finance and Introduction to the Bank Payment Obligation Educational report Observations on the Evolution of Trade Finance and Introduction to the Bank Payment Obligation Foreword At the dawn of 2013, the world continues to wrestle with several serious global

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

Documentary credits, collections and bank guarantees

Documentary credits, collections and bank guarantees Documentary credits, collections and bank guarantees Documentary credits, collections and bank guarantees This book is aimed primarily at import or export companies purchase department employees, CFOs,

More information

Case Study. Inaugural BPO Transaction by China Merchants Bank

Case Study. Inaugural BPO Transaction by China Merchants Bank Case Study Inaugural BPO Transaction by China Merchants Bank Identification of Opportunity During the initial stages of the co-operation, the transaction banking department at China Merchants Bank visited

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

ACI Global Trade Manager

ACI Global Trade Manager PRODUCT LINE FLYER ACI Global Trade Manager Links all transaction participants (buyer, seller, banks and third parties) through a common collaborative platform Shortens the cash cycle for the buyer and

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

Closing the Trade & Supply Chain Finance Gap:

Closing the Trade & Supply Chain Finance Gap: Closing the Trade & Supply Chain Finance Gap: Selected Observations ARTNeT Research Workshop Macau, China Alexander R. Malaket, CITP, President OPUS Advisory Services International Inc. Key Messages Trade

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 Certified Application for Corporates - Trade and Supply Chain Finance

SWIFT Certified Application for Corporates - Trade and Supply Chain Finance Service Partner Programme SWIFT Certified Application for Corporates - Trade and Supply Chain Finance Label Criteria 2016 This document explains the business criteria required to obtain the SWIFT Certified

More information

Supply Chain Finance. SMMT Meet the Funder. 24 th October 2013. Improving Working Capital through effective Financial Supply Chain Management

Supply Chain Finance. SMMT Meet the Funder. 24 th October 2013. Improving Working Capital through effective Financial Supply Chain Management Supply Chain Finance Improving Working Capital through effective Financial Supply Chain Management SMMT Meet the Funder 24 th October 2013 SUPPLY CHAIN FINANCE Why Use Supply Chain Finance? Protect your

More information

MODULE 2 PRICING, FINANCING, PAYMENT METHODS DRAFTED BY: MYCCI BULGARIA

MODULE 2 PRICING, FINANCING, PAYMENT METHODS DRAFTED BY: MYCCI BULGARIA MODULE 2 PRICING, FINANCING, PAYMENT METHODS DRAFTED BY: MYCCI BULGARIA NOVEMBER 2012 Contents PRICING, FINANCING, PAYMENT METHODS...2 INTRODUCTORY NOTES:...2 ABSTRACT:...2 PRICING...3 Price, pricing &

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

Bank Guarantees in International Trade

Bank Guarantees in International Trade Bank Guarantees in International Trade Table of contents Preface.................................................... 3 Acknowledgement.......................................... 4 Introduction...............................................

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

Mastering working capital to build financially sustainable supply chains: A research perspective

Mastering working capital to build financially sustainable supply chains: A research perspective Mastering working capital to build financially sustainable supply chains: A research perspective Simon Templar I would like to acknowledge the assistance of the International Supply Chain Finance Community

More information

Leipzig. 23 May 2013. Michiel Steeman, Nyenrode Business University. Twan van Lankveld, Dinalog

Leipzig. 23 May 2013. Michiel Steeman, Nyenrode Business University. Twan van Lankveld, Dinalog Leipzig 23 May 2013 Michiel Steeman, Nyenrode Business University Twan van Lankveld, Dinalog 1 www.scfcommunity.org 2 SCF STRATEGY SCF STRATEGY SCF STRATEGY SCF STRATEGY SCF STRATEGY SCF STRATEGY SCF STRATEGY

More information

TERMS AND CONDITIONS APPLICABLE TO CREDIT INSTITUTIONS

TERMS AND CONDITIONS APPLICABLE TO CREDIT INSTITUTIONS ERSTE BANK HUNGARY ZRT TERMS AND CONDITIONS APPLICABLE TO CREDIT INSTITUTIONS Effective from: 01 September 2014 1. General Provisions 1.1. These Terms and Conditions (hereinafter TC ) apply to all correspondent

More information

Appendix 4 to the Fish Pool Rulebook. Finalisation, default and settlement of Non-Cleared (bilateral) trades

Appendix 4 to the Fish Pool Rulebook. Finalisation, default and settlement of Non-Cleared (bilateral) trades Appendix 4 to the Fish Pool Rulebook Finalisation, default and settlement of Non-Cleared (bilateral) trades Table of contents: 1. General provisions:... 2 2. Matching of Non-Cleared Trades... 2 3. Confirmation

More information

SITPRO. International Trade Guides. Financial. Methods of Payment in International Trade

SITPRO. International Trade Guides. Financial. Methods of Payment in International Trade SITPRO International Trade Guides Financial Methods of Payment in International Trade Methods of Payment in International Trade This guide explains the different methods of getting paid and the different

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

Export Initiative Renewable Energy

Export Initiative Renewable Energy Export Initiative Renewable Energy Wind Energy Sector Tunisia Financing Opportunities and Risk Mitigation Project Finance International: Dr. Joachim Richter www.export-erneuerbare.de PFI Corporate Profile

More information

The Swiss Value Chain

The Swiss Value Chain The Swiss Value Chain The Swiss Value Chain The Swiss Value Chain links trading on the Swiss stock exchange with the services of post-trading, which include the clearing and settlement of securities transactions

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

Working Capital Solutions. Marc Huijben Laurent de Coster International Business Week October 2012

Working Capital Solutions. Marc Huijben Laurent de Coster International Business Week October 2012 Working Capital Solutions Marc Huijben Laurent de Coster International Business Week October 2012 Our Team at the conference Agenda ING Working Capital Solutions - Introduction WCS Products Supply Chain

More information

Appendix 16 Trade Finance

Appendix 16 Trade Finance Appendix 16 Trade Finance Trade finance is the term used to describe the means by which companies finance and secure payment for the provision of goods and services. It is usually used to describe international

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

prepared by Ozgur Eker CDCS Certified Documentary Credit Specialist

prepared by Ozgur Eker CDCS Certified Documentary Credit Specialist different needs, different usage Commercial Letters of Credit Commercial letters of credit are primary payment method in international trade. Commercial credits are used mainly in exporting and importing

More information

FACTORING AND FORFEITING. the faster way to get your money

FACTORING AND FORFEITING. the faster way to get your money FACTORING AND FORFEITING the faster way to get your money 3 CONTENTS FACTORING 4 DOMESTIC FACTORING 5 1. Supplier s factoring (Reverse factoring) 5 2. Selective factoring with right of recourse 6 3. Individual

More information

Banking Facilities For Pharma Industry. Ramana Murty Malla 20 th Sept14

Banking Facilities For Pharma Industry. Ramana Murty Malla 20 th Sept14 Banking Facilities For Pharma Industry Ramana Murty Malla 20 th Sept14 Agenda Indian Pharma Sector Update Treasurer / CFO Objectives Cash Management Products Trade Finance products Short term and Long

More information

The Lee Kong Chian School of Business Academic Year 2015 /16 Term 1

The Lee Kong Chian School of Business Academic Year 2015 /16 Term 1 The Lee Kong Chian School of Business Academic Year 2015 /16 Term 1 FNCE310 TRADE FINANCE Instructors Name : Jayesh Avlani / Cheng Yam San Title : Adjunct Faculty of Finance Email : jayeshavlani@smu.edu.sg

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

GXS Active. Orders. Optimizing the Procure-to-Pay Process. Order Planning and Execution. Order Lifecycle Management. www.gxs.com

GXS Active. Orders. Optimizing the Procure-to-Pay Process. Order Planning and Execution. Order Lifecycle Management. www.gxs.com www.gxs.com SM GXS Active Orders Optimizing the Procure-to-Pay Process GXS Active Orders automates the procure-to-pay process for companies interacting with a global and diverse supplier community. Active

More information

A Global Online Dispute Resolution System: Is China Ready to Join?

A Global Online Dispute Resolution System: Is China Ready to Join? A Global Online Dispute Resolution System: Is China Ready to Join? Qisheng HE Wuhan University Institute of International Law Outline I. UNCITRAL and Global ODR System II. The Practice of ODR in China

More information

SEPA DATA MODEL. Reason for Issue Approved by the EPC Plenary on 13 December 2006

SEPA DATA MODEL. Reason for Issue Approved by the EPC Plenary on 13 December 2006 Doc: EPC029-06 (Version 2.2) 13 December2006 OITS SG SEPA DATA MODEL Abstract Document Reference Issue This document sets out the SEPA Data Model which is referred to in the SEPA Credit Transfer and Direct

More information

LECTURE NO.8 THE ROLE OF GUARANTEES AND BONDS IN INTERNATIONAL TRADE

LECTURE NO.8 THE ROLE OF GUARANTEES AND BONDS IN INTERNATIONAL TRADE LECTURE NO.8 THE ROLE OF GUARANTEES AND BONDS IN INTERNATIONAL TRADE A guarantor issues a guarantee or bond, usually a bank or an insurance company, on behalf of an exporter. It is a guarantee to the buyer

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