Supply Chain Finance provides a range of financing and risk mitigation solutions designed to optimise working capital and liquidity in domestic and international supply chains. Some products are provided directly to the suppliers, others via buyers. Below we describe the two types of solutions ANZ offers.

Receivables Finance

Receivables finance is a supplier-led working capital solution, where the seller (ANZ customer) sells to ANZ the trade receivable due from its buyer (approved by ANZ), on a limited recourse basis to the seller. ANZ has the right to receive payment from the buyer and in the event of non-payment ANZ has the ability to enforce this right against the buyer.

Mechanics of Receivables Finance

  1. The supplier receives a purchase order for goods from their buyer
  2. The supplier fulfils the order by delivering the goods and invoicing the buyer – evidencing a future payment obligation of the buyer
  3. If the buyer has been approved by ANZ the Supplier can present the invoice together with a purchase request to ANZ
  4. If ANZ accepts the purchase request ANZ will purchase the invoice at the pre-agreed purchase price
  5. ANZ takes an assignment over the purchased receivable
  6. At the invoice due date the buyer pays the full invoice value to ANZ

Potential Benefits of Receivables Finance

Payables Finance

Payables finance is a buyer-led, digital solution that allows a buyer (ANZ’s customer) to arrange early payment of approved invoices due to suppliers at a future date. The solution provides suppliers with access to lower cost liquidity by leveraging the buyer’s stronger credit rating.

Mechanics of Payables Finance

  1. The buyer places an order for goods with its supplier
  2. The supplier fulfils the order by delivering the goods and invoicing the buyer – evidencing a future payment obligation of the buyer
  3. The buyer uploads the approved invoice and provides a payment undertaking to ANZ that they will pay the full invoice value to ANZ on the invoice due date
  4. The supplier is able to view all accepted invoices on the supplier portal and request a selection of invoices or all invoices to be paid early by ANZ
  5. ANZ pays the supplier at the requested early payment date at a discount to the invoice face value
  6. At the invoice due date the buyer pays the full invoice value to ANZ

Potential Benefits of Payables Finance

For more information on ANZ Trade and Supply Chain Finance products please contact the Trade Finance Desk via email or phone 1300 269 487

For more information on how ANZ can help you grow your business internationally please visit the ANZ Be Trade Ready site.