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Supply Chain Finance

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

  • Reduction in working capital requirements through a decrease in days sales outstanding
  • Potentially lower cost of funds than for other financing solutions due to the leveraging of the buyer’s credit rating
  • Reduction of buyer insolvency risk through a sale of the receivable to ANZ
  • Improved buyer loyalty with the potential to offer longer payment terms without an increase in pricing
  • Potential to put you in a winning contract tender position by allowing you to offer extended payment terms

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 on the payment due date. The solution may provide 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

  • Improve supplier loyalty by arranging access to cheap finance and reducing the risk of non-payment
  • Early payment to suppliers for goods sold supports a healthy financial base to provide a consistent service

The Trade Information Network

The Trade Information Network is an innovative platform that enables you to securely share trade information with banks of your choice. This enables banks to better assess risks and provide trade financing earlier in the supply chain, including for small and medium-sized enterprises who have traditionally experienced difficulty in accessing trade finance. Learn more about the Trade Information Network in the video below.

 

 

More information

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