Distributor Finance is based on your sales activity through your distributors. Standard Chartered Bank will agree with you on the distributor selection criteria upfront, according to which you will nominate qualified distributors to join our DF programme. We will provide stable financing support for the nominated distributors at a competitive financing cost. By joining in this program, your distributors will get sufficient funds to purchase your products. That will help you grow your sales, increase the loyalty of the distributors and strengthen your anchor position in the supply chain.
In the past year, Standard Chartered China has provided Distributor Finance solution to 24 anchor companies and hundreds of distributors. Our clients are mainly from consumer electronics, auto supplies, FMCG, medical equipment and supplies and, etc.
- Linked to Anchor’s sales to the Buyer
- Buyer’s credit limit is based on Anchor’s recommendation and Standard Chartered Bank’s own credit evaluation
- Full / nil / partial recourse to the Anchor
- Bank pays the Anchor upfront on agreed dates and proceeds will be collected from the Buyer on the due date
- Strength of the supply chain linkage between the Anchor and the Buyers
- Standalone balance sheet strength of the Buyer
- Anchor agrees to stop supplies to the Buyer when asked by the Bank, in case Buyer defaults
- Accelerates Anchor’s Account Receivable conversion cycle and de-risking of balance sheet
- Increases the Anchor’s sales turnover by providing enhanced working capital to the distribution chain during peak / festival season
- Enhances the channel loyalty
- Electronic transaction management and enhanced process transparency with real-time reports
- Dedicated supply chain and implementation teams ensuring efficient distributor on-boarding and faster deal completion
For more information, please contact your relationship manager, transaction banking sales consultant, or visit sc.com/cn
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