Presentation on theme: "Receivable management Ireneusz Kowalewski Trade Finance Department Head tel. 657 7272 Mateusz Niemczyk Trade Sales Head."— Presentation transcript:
Receivable management Ireneusz Kowalewski Trade Finance Department Head tel. 657 7272 firstname.lastname@example.org Mateusz Niemczyk Trade Sales Head tel. 657 7051 email@example.com
2 Receivable discounting solution Single obligor approach Full recourse versus non-recourse Financial versus non-financial Public Sector Bank’s role in receivable management –1. Receivable discounting Supplier financing Target market Advantages for buyer: Payment terms, pricing negotiations, relationship Advantages for supplier: Liquidity, no collateral, low costs Supplier 1 2 3 4 1. Supplier issues the invoices / delivers the goods 2. Byuer accepts the invoices and sends them to the Supplier 3. The Supplier submits the application for receivables discounting together with the invoices and buyer’s acceptance on invoice 4. The Bank credits the Supplier’s account 5. Buyer credits BH account on the invoices due dates 5 Buyer
3 Receivable discounting –electronic platform Electronic request for discounting Web-based reports for all parties Settlement and reconciliation on due date System security and efficiency
4 2. Trade Revolving Loan (Handlowy Kredyt Rewolwingowy) Working capital revolving loan Supported by acknowledged assignment of receivable Level of eligible receivables electronically verified – weekly Size of revolving line adjusted – weekly Payments matched against individual invoices (electronically) Unique solution on the market – end to end process covered by electronic platform Weekly verification of adequacy of collateral and subsequent automatic weekly adjustment of the available line Comprehensive Early Warning MIS Monthly verification of Customer’s debtor performance More efficient use of Client’s assets (higher advance rates as compared to currently offered loans supported by receivables) Providing comprehensive information to a customer on payments (matched with individual invoices) Enhanced debtor payment discipline through soft collection function provided by the Bank
Limited recoursediscounting Limited recourse trade receivables discounting for OECD countries 180 days Eligible: open account trade receivables with payment terms up to 180 days insurance agreement Program under specific insurance agreement between KUKE SA and Citibank Handlowy exporter does not make self- insurance Citibank Handlowy is the beneficiary of the policy, the exporter does not make self- insurance in KUKE SA 95% the insurance covers 95% of invoice value payment, political and catastrophic the policy covers payment, political and catastrophic risk Soft-collection and recourse procedure, conducted by Citibank Handlowy and KUKE SA New product underway: domestic receivables discounting with KUKE SA insurance 3. Limited recourse export receivable financing
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