Distributor FinancingGrow your distributor network with customised funding solutions

Steady, assured and fast financing

Distributor challenges

Manufacturer challenges

Extended DSO leading to increasing

financing costs

Limited sales growth / distribution network

not growing

COST COST

High cost for distribution network management

Limited ability to meet identified demand due to

insufficient capital

Existing financing limits too low to meet procurement needs

COST

CAPITAL

High cost of finance and collateral security

requirements

Distributors, typically small and medium enterprises, have benefited greatly from Standard Chartered’s Distributor Financing solution. Based on the strength of their relationship with the manufacturer, these distributors now receive steady and assured funding to support their working capital needs, while manufacturers save cost by converting receivables to cash on time.

With a host of customised digital solutions e.g. ERP integration plus EDI, API, Host-to-Host connectivity etc., distributors enjoy highly efficient, automated transaction initiation and management. Any financing request can be initiated by either the manufacturer or their distributors.

Benefits

Distributor

Manufacturer

• An assured and steady source of funding

• Support full working capital cycle

• Simplified facility, often without collateral requirements

• Distributors stocking ability is enhanced

• Builds channel loyalty

• Support for ad-hoc and seasonal sales peaks

• A global bank with a full suite of banking solutions

• Integrated financing and payment on Straight2Bank

• De-risking of balance sheet

• Conversion of receivables to cash on time

• Savings on sales proceeds collection

• Encourages payment discipline among distributors

• Offers better monitoring of distributors’ performance

• Strengthens the relationship with the manufacturer

• Prepared for seasonal fluctuations in sales

2

2

3

3

1

1

Treasury management

Banking services

Credit control

Procurement

Sales management

Financial management

Distributor Finance ProgrammeScalable, replicable

and adaptive

Support distributors’ growth with competitive financingWe have dedicated teams of relationship managers ready to support you.

Financing solutions that work for your distribution channel

Digitally connectedStraight2Bank offers a comprehensive set of features, designed to help increase productivity and manage your company’s finances.

You can initiate financing transactions, inquire account limits and balances and get real time reporting and more, at the convenience of your office or home - from any country.

Straight2Bank

Efficiency Quick on-boarding, lower collateral requirements and competitive interest rates.

Dedicated resourcesWe have a dedicated team of relationship managers to develop the programmes with suppliers and their buyers.

Experienced providerMore than 150 live programmes and providing limits for over 5000 distributors.

We value relationships. The typical distributor financing programmes have been running for at least 10 years. The longest running one is now in its 16th year of operation. That is indicative of our commitment to your success.

How it works

Simple 3-step approval process to gain access to Distributor Finance service.

Manufacturer sign up & recommendation

Distributor site visit

Limit approval and setup

The manufacturer agrees a programme with Standard Chartered and provides a list of distributors who they recommend to join the programme.

Standard Chartered visits distributors on-site to collect business and financial documents for credit analysis, account opening and Straight2Bank setup.

Standard Chartered approves distributor lending limits. Account opening and system setup are completed.

1

2

3

Puchaseorder

Payment ofpurchase

Fundingrequest

1 2 3 4Shipment of

orderRepaymentSubmit

documents

5 6

DistributorPO sent to the

manufacturer who uploads it into Straight2Bank

Manufacturer DistributorShipment and issue invoice and delivery note to distributor

Submit invoice and delivery note to

Standard Chartered

Repayment made to Standard Chartered

on due date

ManufacturerReceives the

funding directly into their account

DistributorRaises a request for

finance against the PO in

Straight2Bank

Distributor

Straight2Bank

Inv

Case study

Finance the distributors’ purchases from the manufacturer against accepted purchase orders or sales invoices

Offer the distributors competitive pricing (which could not be achieved outside of the programme) and require less security

Bilateral limits to distributors as per their procurement needs and working capital cycle

Partial recourse or no recourse to the manufacturer

More than 100 distributors are now participating in the programmeParticipatingDistributors

100%

Client needsA large MNC electronics manufacturer is growing its business extensively in ASEAN and South Asia and recognises the need to alleviate the cashflow issues faced by local market distributors. Many distributors’ growth is hindered by long payment terms and limited access to affordable finance. The manufacturer is aiming to boost sales and loyalty with its distributor network. In the process, it hopes to reduce ancillary cost and risks associated with accounts receivables. The benefits to manufacturers are improved cash flow and a stronger balance sheet.

Our solution

With Standard Chartered’s competitive financing solutions, your distributors can grow and help your business to gain market share

Standard Chartered has worked with more than 150 manufacturing anchors, offering steady, assured and fast financing to more than 5000 distributors in the SME sphere.

Disclaimer

This material has been prepared by one or more members of SC Group, where “SC Group” refers to Standard Chartered Bank and each of its holding companies, subsidiaries, related corporations, affiliates, representative and branch offices in any jurisdiction, and their respective directors, officers, employees and/or any persons connected with them. Standard Chartered Bank is authorised by the United Kingdom’s Prudential Regulation Authority and regulated by the United Kingdom’s Financial Conduct Authority and Prudential Regulation Authority.

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Get in touch with usFrom trade finance to cash management, Standard Chartered supports clients’ financial needs across Asia, Africa, and the Middle East. To learn more about how we can support your growth in these dynamic regions, please get in touch.

Contact your Standard Chartered relationship manager directly.