Supply Chain Management
Bank of the West delivers a comprehensive range of supply chain management solutions1 to help suppliers and buyers reduce cash trapped in their working capital.
Smart supply chain management solutions can help your business:
- Reduce the financing costs across your supply chain by monetizing current assets and extending current liabilities
- Access additional sources of funding
- Mitigate payment risk
- Enhance key working capital metrics
Supplier financing benefits for buyers
Supplier financing can help your business be a more attractive commercial partner, enabling you to pay your critical suppliers early while controlling your cost of goods.
Supplier financing benefits
- Receive extended payment terms from suppliers that agree to change the invoice maturity to a later date and/or reduce the price you pay suppliers for goods by paying suppliers early.
- Hold cash longer thanks to increased trade payables and Days Payable Outstanding (subject to auditor confirmation).
- Enable your suppliers to receive cash early without having to use their bank lines at a cost based on your credit risk.
- Secure and strengthen your relationships with key suppliers.
Receivable purchasing benefits for suppliers
Receivables purchasing offers an alternative source of liquidity to conventional working capital financing. It also helps your business manage credit or concentration risk if you have a large portion of receivables tied up with a single buyer.
Receivable purchasing benefits
- Transfer payment risk to your banking partner and reduce the risk concentrated with a single buyer.
- Monetize your receivables before their maturity date.
- Boost your liquidity and improve your balance sheet ratios.
- Be a more attractive supplier by adapting to your buyers’ desired payment terms.
Global Trade Solutions case study
When a leading global beverage company wanted to strengthen its balance sheet and access working capital by transforming its receivables into cash, Bank of the West proposed a solution, leveraging its close relationship with parent company BNP Paribas and its strong track record working with the company’s U.S. subsidiary.
Bank of the West’s Global Trade Solutions (GTS) team delivered an Accounts Receivable Purchasing solution that helped transform the company’s receivables into cash directly without having a short-term line of credit as a liability on its balance sheet. The GTS team put in place a $30 million program to purchase the company’s receivables, including invoices due from a key account debtor. Bank of the West’s familiarity with the client and its creditworthiness helped facilitate the transaction.
The solution enabled this multinational company to achieve its balance sheet and financial ratio objectives both in the U.S. and at a global group level. This soon led to a second program for other account debtors on an insured basis
Supply chain management solutions through the BNP Paribas global network
With BNP Paribas as our parent company—the No. 2 trade finance provider in the world2 and a leading player in supply chain management solutions—we connect our clients to global trade expertise and resources that set us apart from our peers, including:
- Teams based in most regions3 worldwide dedicated to supply chain management solutions
- A proven track record of milestone supply chain management transactions worldwide
Some BNP Paribas facts:
1Credit subject to approval.
22012 Euromoney survey.
3The Americas, Europe, Asia and the Middle East.
4BNP Paribas Supply Chain Management Group, as of August 30, 2015. The transaction count is for Europe and North America only.
5Global Finance magazine awards, 2016.
6Certain capital markets & investment products referred to in this document are: (i) not insured by the Federal Deposit Insurance Corporation (FDIC); (ii) not deposits or other obligations of the financial institution and are not guaranteed by the financial institution; and (iii) subject to market fluctuations or investment risks, including possible loss of value and/or loss of the principal invested.
Investment and Insurance Products:
- NOT FDIC INSURED
- NOT BANK GUARANTEED
- MAY LOSE VALUE
- NOT A DEPOSIT
- NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY