Many corporations are looking for innovations to strengthen relationships with core suppliers or improve the economics of their supply chains. Our flexible Supply Chain Finance product range provides both suppliers and buyers with financing opportunities during distinct phases of the financial supply chain.

• Pre-Shipment finance: This process begins at the placement of a confirmed order by the buyer. Suppliers may request via our FSC platform short-term finance, after purchase orders have been authenticated by the respective buyers
• Post-Shipment finance: This may be triggered by the electronic provision of invoice information to us. Invoice information can be provided by suppliers (unapproved) or by buyers (approved). On an integrated end-to-end process flow basis, previous Pre-Shipment finance transactions may be automatically converted into Post-Shipment finance transactions
• Confirmed payable: After invoices have been approved by buyers and corresponding account payable are booked in the buyer’s ledger, buyers may provide us with confirmed payables information. This information is posted to on our FSC Portal and made accessible to relevant suppliers in a secure environment. By leveraging their good financial standing, strong buyers may provide selected suppliers with attractive funding opportunities and other advantages
• Distributor Finance: Distributor Finance provides finance to creditworthy distributors in order to finance their purchase of finished goods from manufacturers. The benefits are access to working capital, increased liquidity, improved cash flow and better management of trading relationships. Many corporates also use Distributor Finance solutions to increase their sales through the distributor network
• Receivable Finance: Corporate clients (sellers) increasingly choose to enter into revolving Receivables Purchase Agreements (RPAs) with Deutsche Bank to obtain access to alternative funding. Non-recourse receivables purchase programs provide access to additional liquidity, mitigate risks from non-payment and reduce Days Sales Outstanding (DSO). They also achieve sales growth in cases where the ability to sell is restricted by a lack of internal credit appetite on their customers

Ring-fenced green or sustainable transactions

• 100% of the underlying exports/imports or supported projects are allocated to a specified purpose, which clearly meets sustainability criteria as per internationally recognized taxonomies
• Relevant examples of taxonomies are the EU Taxonomy for Sustainable Activities, the Green Bond and the Green Loan Standard by the Loan Markets Associations (LMA)
• The number and complexity of sustainability Key Performance Indicators (KPI) can be jointly discussed and individualized to allow a pragmatic approach as every client setup is unique. Regardless of the agreed KPI structure, all solutions have in common that they provide clear financial incentives and thereby send a strong message to our client’s stakeholders, demonstrating the company’s commitment and innovative approach to sustainability

Inclusion of an ESG-linked incentive to the financing structure

• The seller(s) is/are incentivised towards sustainable behaviour, e.g. via paying a favourable price upon strong sustainable performance or paying an extra penalty in case sustainability targets are not met
• Depending on the Supply Chain Finance solution at hand, there are various forms of implementing such a mechanism – ranging from highly individualised sustainability targets defined for one seller to standardised sustainability performance metrics for a large base of suppliers
• Regardless of the sustainability technique used to structure the programme, all solutions have in common that they provide clear financial incentives and thereby send a strong message to our client’s stakeholders, demonstrating the company’s commitment and innovative approach to sustainability