Working Capital Solutions - Unlocking cash from your fi nancial supply chain
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Working Capital Solutions
[Unlocking cash from your financial supply chain]
EBU001Working Capital Solutions
Having a healthy working capital position is key to your ING’s Working Capital Solutions are well equipped to help you
company’s financial position and stability. You are looking tackle these issues and improve both sides of your balance
to reduce your need for working capital, reduce costs and sheet by applying one or more of our three working capital
improve your financial supply chain. Looking at the future programmes.
your business would benefit significantly if you could:
• Diversify funding
• Improve financial ratios and return on capital employed
• Improve cash flow and optimise working capital
• Realise pricing benefits
• Improve risk management.
Supply Chain Finance Trade Receivables Purchase International Corporate
Programme Receivables Financing
Helps reduce your working capital Source of funding which is scalable to Tailor-made funding solution designed
needs and can increase free cash flow finance trade growth and can help to to mitigate exposure concentrations
improve your financial ratios
Coverage
Our Working Capital Solutions have serviced clients
globally in a broad range of industries, including food &
beverage, steel & non-ferrous metal, packaging, paper,
plastic, construction, building materials, chemicals, energy,
automotive, temporary employment, retail, utilities and
telecommunications and media.
Working Capital Solutions coverage
Working Capital Solutions 2Supply Chain Finance
Supply Chain Finance is a working capital optimisation tool, Supplier X
which unlocks cash, trapped both within a company and in the Client (“Buyer”)
value chain with key suppliers. ING purchases the approved Assets Liabilities A/R
trade receivables that suppliers have on the buyer and
basically steps into the shoes of the supplier. Subsequently Supplier Y
ING will receive payment from the buyer when the invoice A/P
becomes due and payable. A/R
Increased Supplier Z
terms
A/R
Funded
PO
1
Invoice
2 Suppliers
Buyers
3 4
Invoice 6 5
ING ISIS platform
ISIS
ING ISIS: +31 (0)20 501 1234, open Monday-Friday, 8.00-18.00 CET | E-mail: ingisis@ing.nl
Unconfirmed Unverified Confirmed Queried Unconfirmed/ Cancelled E-mail Search Change Sign
ź5 ź4 ź3 ź2 amended ź 1 ź0 alerts password out
Unconfirmed ¬
Customer Type Bank reference Bought Sold Rate Deal date Value date Nominal Interest
ź ź ź ź ź ź ź ź ź ź
ECONFIRM FX BC123455 GBP 1,550,000.00 EUR 1,789,000.00 0.8678 08/07/2013 08/07/2013 USD 2,220,998.00 USD -3,999.15
ECONFIRM FX BC123455 GBP 1,550,000.00 EUR 1,789,000.00 0.8678 08/07/2013 08/07/2013 USD 2,220,998.00 USD -3,999.15
1. Send purchase order (business as usual) 4. Supplier needs cash and requests early payment
2. Send goods/services and invoice (business as usual) 5. ING pays invoice amount minus a small fee
3. Approve invoice and present on platform (this is new) 6. Buyer pays ING invoice amount at due date
Benefits Why ING?
For the buyer • ING offers a fully automated web based SCF solution, which
• A reduction of working capital and increase of free cash complies with the highest possible security standards and
flow through extended payment terms is designed to have a limited impact on existing operations
• Improved relationship with the suppliers, which creates • A detailed supplier analysis based on which an appropriate
opportunities to negotiate better terms and conditions supplier on-boarding strategy can be established that will
• Reduced operational and payment costs. lead to quick wins for our clients.
• A broad international network supports both buyer and
For suppliers supplier on-boarding and facilitates an efficient roll out of a
• Instant liquidity through early payment of invoices and supply chain finance programme.
lower financing costs
• Unlocking working capital and free cash flow improvement
• Attractive source of non-recourse funding, based on buyer’s
credit rating
• Payment certainty and improved transparency on status
of invoices and timing of payment
• Credit risk management and balance sheet optimisation tool.
Working Capital Solutions 3Trade Receivables Purchase Programme
ING’s Trade Receivables Purchase Programme provides
an alternative funding solution to the “seller” based on Client (“Seller”)
securitisation techniques, by purchasing large and diversified
Assets Liabilities
portfolios of trade receivables. The transfer of receivables is
typically executed via a true sale of the receivables to ING or
to a so-called special purpose vehicle (SPV).
Debtor 1
Debtor 2
...
Debtor N
A/R
Funded
Portfolio of Receivables purchase agreement
trade Servicing agreement
receivables
Obligor 1
Obligor 2 Products Purchase price Special purpose
vehicle
Seller True sale or
Obligor 3
Receivables Receivables Purchaser Purchaser
Obligor 4
Obligor ... Collections Collections
Credit Bonds/
insurance loans proceeds
Obligor N policy
Credit
insurer (if any)
Your benefits Why ING?
• Attractive source of committed funding, which offers • ING combines comprehensive global working capital
competitive pricing up to an AA equivalent rating and solutions capabilities with a local presence spanning
is scalable to finance trading growth 40 countries.
• Anonymous access to financial markets • ING has a successful track record with over 250 TRPP
• The possibility to achieve off-balance sheet treatment programmes completed
• Strong balance sheet management tool to improve • An experienced team of professionals is available to
financial ratios and overall pricing cover all aspects of a TRPP transaction, from feasibility
• Multiple sellers and jurisdictions can be included in assessment to documentation.
one programme.
Working Capital Solutions 4International Corporate Receivables Financing
International Corporate Receivables Financing facilitates
clients in raising liquidity through the financing of trade Client (“Seller”)
receivables, inventory and purchase orders. ING is able to
Assets Liabilities
take over debtor risk and it can be tailored to the needs of
our customers as a one-off trade receivable purchase or as a
facility for multiple receivables from the same debtor or group
Debtor 1
of debtors. Receivables financing can be done with recourse
Debtor 2
or on a non-recourse basis. ...
Debtor N
A/R
Funded
Portfolio of
trade Receivables purchase agreement
receivables
Obligor 1
Obligor 2 Products Purchase price
True sale
Obligor 3
Receivables Originator Receivables Purchaser
Obligor 4
Obligor ... Collections Collections
Credit
insurance
Obligor N policy
Credit insurer
(if any)
Your benefits Why ING?
• Diversification of funding sources, scalable to finance • A seasoned team of professionals is available to cover
trading growth at attractive pricing all aspects of an ICRF transaction
• Tailor-made funding solution designed to accommodate • ING combines comprehensive global working capital
exposure concentrations solutions capabilities with a local presence spanning
• Flexible solution designed to capture everything ranging 40 countries and a broad range of industries.
from single debtor receivables to multi-jurisdiction pools in
a single transaction structure
• Possibility to achieve off-balance sheet treatment for
non-recourse transactions.
Working Capital Solutions 5More information
For more information about our
Working Capital Solutions
please send an e-mail to
WCSContact@ing.nl
or visit www.ingcb.com
The registered office of ING Bank N.V. is located at Bijlmer-
plein 888, 1102 MG Amsterdam, Trade Register number
33031431 in Amsterdam. ING Bank N.V. is registered with
the Dutch central bank (DNB) and the Netherlands Authority
for the Financial Markets (AFM) in the Credit Institutions and
Financial Institutions Register. ING Bank N.V. is also subject
to the supervision of the Netherlands Competition Authority
PCM189 1013 © ING Bank N.V.
(NMa). Information about the supervision of ING Bank N.V.
can be obtained from the DNB (www.dnb.nl), the AFM
(www.afm.nl) or the NMa (www.nmanet.nl).
In the context of this publication ‘ING’ and ‘bank’ are under-
stood to mean: ‘ING Bank N.V.’You can also read
