What is UBS Supply Chain Finance?

Optimization of the profitability along the supply chain through the sustainable integration of the procurement, invoicing and financing processes on a single online platform.

Which parties are involved in UBS Supply Chain Finance?

The buyer of the goods/services; the supplier of the goods/services that have been ordered; and UBS as the neutral party and the provider of the solution that makes the transactions via e-banking possible.

Who initiates UBS Supply Chain Finance?

UBS Supply Chain Finance is initiated by the buyer (not by the supplier).

How can a supplier participate in the program?

The supplier receives an invitation to Supply Chain Finance from the buyer. If the supplier is interested, he must register with UBS, and the onboarding process is initiated.

What is the onboarding process?

The onboarding process includes integrating the supplier on the basis of the compliance checks conducted by UBS and providing the required documents and authorizations in e-banking.

What is the role of UBS in the entire process?

UBS has a neutral role, as the existing banking relationship or financing that the supplier has will not be affected. Moreover, the receivables are not bought by UBS; they are merely paid earlier.

What does the buyer have to do so that the seller can request early payment for receivables?

In order for bills to be paid early, the buyer has to send UBS an SCF payment order (NRA = non revocable acceptance).

Are there any differences between the products "letter of credit," "supply chain finance" and "open account payment"?

Supply Chain Finance is a solution between a letter of credit and an open account payment. SCF combines the simple processing and low costs of an open account payment with the high level of security found with a letter of credit.

When does Supply Chain Finance make sense as a solution?

Supply Chain Finance makes sense when a company has recurring business transactions with important suppliers.

What is the minimum number of suppliers or transactions required to implement UBS Supply Chain Finance?

The buyer needs to have at least 10 suppliers with about four transactions each per year.