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Supply Chain Finance (SCF) has been developed in order to optimize the conditions of the payment terms with selected б¦ÆåÅÆ suppliers.   The SCF Program allows our suppliers to get access to funding from financial institutes – partners of program at highly attractive conditions, under the pledge of revenue, or assignment of claims under a contract with б¦ÆåÅÆ.
The implementation of SFC will improve the efficiency of interactions between б¦ÆåÅÆ and its own suppliers.

Advantages for б¦ÆåÅÆ suppliers upon participation in SCF:

• Less documentation (compared to other banking instruments)

• Attractive discount rate

• Additional funding source

Participation conditions:

• Suppliers must have contracts for a total amount of more than 30 mln. Rubles.(or an equivalent sum in another currency)

• Suppliers must have an amount of account receivables from б¦ÆåÅÆ totaling more than 5 mln. Rubles.(or equivalent in another currency)

• Some suppliers may be able to join the SCF program if their contracts total an amount less than 30 mln. Rubles.

• Payments conditions between б¦ÆåÅÆ and suppliers should correspond to common market practice.

Example

Suppliers with contract terms of:

• Amount of funding – 100 mln. Rubles.

• Payment due in 90 days

• Difference between using other financial instruments compared to SCF – 5%

Benefits:

1. Reducing the cost of financing 100 000 000 * 0,05 * 85/365 = 1 164 384 rubles

2. Additional cash flow totaling 100 000 000 mln. Rubles.

3. Reducing the requirement of financing from other sources: 100 000 000 * 85/365 = 23 287 671 rubles

Different ways of program realization are possible subject to contract conditions, mutual requirements of б¦ÆåÅÆ, a supplier and a bank/factor – partner. E-document flow is allowable in certain cases.  
Request for participation in the Program or for additional information could be sent to the following contacts.