The idea

The main idea behind Supply Chain Finance is ensuring a collaboration between the parties. In other words, to establish a long lasting financial value by emphasizing the business vision on a joint approach and not anymore on the single entity. The process is initiated by the buyer, who enables his key suppliers to benefit from his better credit rating and consequently, to get earlier an easier access to liquidity at a low discount permitting them to secure the production and to reduce the debtor risk of deliveries.

UBS Supply Chain Finance permits the participants to effectuate all the transactions whenever needed and in a completely independent manner. Moreover the existing banking relationships continue to persist and are not affected in any way by the program or UBS.

The idea
  1. The buyer orders goods/services from the supplier.
  2. The supplier sends goods/provide services to the buyer with the associated invoices.
  3. The buyer sends a SCF Payment Order (NRA = non-revocable acceptance) to UBS via KeyDirect. UBS receives the SCF Payment Order and makes these available online, providing both, the buyer and the involved suppliers, with a transparent overview of their finances and exact due dates.
  4. The suppliers can select via online platform the payments they want to receive earlier. Meanwhile the resulting discount is clearly visible.
  5. If the supplier needs a fund request before the predefined due date, UBS transfers the discounted amount to the bank account of the supplier.
  6. The buyer is debited only on the due date. In case the supplier does not request an earlier payment, his receivables are paid on the due date.