ING in Russia

ING in Russia

Supply Chain Finance

Supply chain finance (SCF) is a working capital optimisation product that links large buyers (corporates), their suppliers and ING Bank through a web-based platform where suppliers can view their buyer-approved receivable and choose early repayment on them at a small fee.

About supply chain finance

SCF which provides non recourse financing to the key suppliers of large corporate buyers, aims to improve FINANCIAL efficiency of the supply chain and substantially reduce the working capital need of both buyers and suppliers.

It creates a true win-win for all the parties involved as one of the most attractive tools for companies to diversify funding sources, enrich and solidify the relationships with their trade partners.

 

ING SCF proposition

SCF services rendered by ING Bank aim at large corporate buyers, willing to implement innovative working capital optimisation solution and deliver value in their supply chain.

SCF solution delivered by ING Commercial Banking in Russia is localised for the Russian market. It has a fully compliant legal framework constructed in accordance with Russian law, provides for neutral accounting and tax treatment and delivers financing in Russian rubles.

ING SCF offering is available to our clients on the basis of a fully automated SCF platform.

The ING SCF Platform is a web-based portal with interface in both Russian and English, to which the buyer and its key suppliers are provided access. The key features and benefits of the platform include:

  • The buyer uploads information on invoices to the platform via a secure connection and in an automated way. The information is shown at the portal to the suppliers who log on with the previously received passwords.
  • Suppliers have a complete overview of their receivables on the buyer: which invoices have been approved, what is disputed, what credit notes have been applied, when is payment due and in which currency.
  • The ING SCF Platform offers the possibility to suppliers to advance their trade receivable payment via a simple click of the mouse. Transparency is complete as the ING fee is shown: no hidden fees or charges apply.
  • The supplier determines if, when and what invoices are traded. The possibility to always automatically trade all approved invoices is also available (auto-trading).
  • The ING SCF Platform is set up to have a minimum impact on existing processes and procedures. Additionally, several downloadable reports are available in a format of choice (pdf, excel, csv, etc). Information for reconciliation can thus be easily extracted and used.

 

Benefits for buyers

  • Longer payment periods (Days of Payment) by negotiating term extensions
  • Reduction of cost of goods sold by negotiating higher discounts
  • The ING SCF Platform increases transparency and eliminates the need for manual inquiries on invoice status
  • The win-win value creation the relationship between the supplier and buyer.

 

Benefits for suppliers

  • Improved access to liquidity, as receivables can be turned into cash ‘on demand’
  • Improvement of Days of Sales Outstanding
  • Diversification of financing sources
  • Flexible invoice management and financing service
  • Favourable SCF interest rate versus supplier’s alternative financing options
  • Reduction/elimination of credit risk on client and possible savings in credit insurance
  • Creates visibility and improves status transparency of accounts receivable
  • Better solving of payment disputes and reconciliation
  • Improved cash flow forecasting and balance sheet management
  • Non recourse sale of receivables
  • Automated payment processes
  • No commitment fees, no audit fees
  • On-demand ability to match tenor and amount to exact need.