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How to Structure a Supply Chain Finance Transaction

WHAT IS A SUPPLY CHAIN FINANCE TRANSACTION?

Supply chain finance is a financing method designed to support suppliers fulfill their orders especially in regard to a reputable and financially stable customer. The off taker equally benefits by extending their day’s payable and thereby managing their business better.
From the sponsors (banks) perspective this is a medium risk, short term, high income transaction income product. The risk is anchored on the reputation and credit worthiness of the off taker with whom the supplier does business with regularly.
If well-structured with the right parties has the opportunity to rake in more income with less risk and minimal provisional as regards to the regulators expectations of safe lending practices.
Transaction Checklist Items NEGOTIABLE Industry Address Audited Financials Procurement Policy/Supplier On boarding Protocols Memorandum and Articles of Association NON NEGOTIABLE Company Name Annual Turnover CRB number
PARTIES Off taker – usually the B…
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The Pigeon Network - Cape to Cairo

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