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Supply Chain Solutions

Optimising the management of your working capital and cash flow

With its extensive local presence and dedicated local SME relationship management teams, Ecobank is able to support the entire supply chain of its large corporate and institutional customers. Working in close partnership with its ‘anchor’ customers, Ecobank can provide inventory-financing solutions adapted to the requirements of their distributors. The Group also provides supplier financing and customised asset-based financing to optimise the working capital cycle of its corporate customer base.

  • SUPPLIER FINANCE SOLUTIONS

    Efficiencies for suppliers. Reliability for buyers.

    Ecobank is the bank of first choice of a number of large corporate organisations, who naturally engage in the purchase of goods and services from other companies. Ecobank makes facilities available to its suppliers, once the buying corporate has confirmed that the goods/services they ordered, meet agreed conditions and that payment has been scheduled. These only cover specific sales agreed with the corporate buyer. The corresponding repayment is made directly by the corporate buyer to Ecobank.

    The net effect is that the performance risk of the supplier is mitigated by the fact that each individual supplier deemed important to the corporate is earmarked and consequently recommended to Ecobank, under agreed terms.

    A major benefit to the supplier is the potential substitution of the supplier’s credit risk with that of the corporate buyer, and an opportunity for a lower financing rate. The supplier also enjoys more timely and efficient payments.

    You as the buyer benefit from a reliable supply source, supported with supply chain financing from Ecobank and often with extended periods of days payables.

  • DISTRIBUTOR (DEALER) FINANCE SOLUTIONS

    Greater value for corporate seller and distributor supply chains

    Our solutions for dealers covers distributors in select industries including

    • Pharmaceuticals
    • Detergents and Personal Care products
    • Food and Beverage
    • Flour/Sugar
    • Petroleum products
    • Telecoms

    Finance in the form of direct payments to the manufacturers or service providers (of usually larger corporate clients) is offered to help finance the purchases of products by distributors. Repayments are then made via daily/periodic lodgement of sales proceeds in distributors’ accounts. The corporate seller provides the required sales invoice and documentation to Ecobank for processing.

    The anchor/buyer benefits from:

    • A lower risk than with traditional finance facilities, due to the stronger supply chain links between the corporate seller and distributors and the ability to spread the risk over a diversified pool of proven distributors/dealers
    • Faster conversion of its receivables to cash
    • Potential for a de-risking of the balance sheet when financing of its distributor is done with or without partial recourse
    • The enforcement of payment discipline to distributors/ dealers by the bank
    • Prompt supply of raw materials to prevent disruption in the manufacturing process
    • Improved working capital position leveraging on supplier or distributor credit
    • Enhanced market share through increased volume of sales

    The supplier/distributor benefits from:

    • an assured and steady source of finance
    • a possible interest rate benefit over existing borrowings by their association with the corporate seller.

    In addition to trade loans for import and export finance, inventory and warehouse financing options, other related solutions within receivables based finance are available from Ecobank.

  • OMNI eFSC (Electronic Financial Supply Chain)

    Our network for your supply chain

    eFSC leverages the technology of Ecobank OMNI, our Pan-African corporate banking portal;

    • electronically linking corporate clients, their buyers, suppliers and Ecobank, creating an advantageous ecosystem
    • optimizing Working Capital throughout the end-to-end supply chain for both buyers and sellers
    • offering ease of visibility along the supply chain

    As part of Ecobank’s Network Advantage, Omni offers this integrated financial supply chain solution to connect your buyers, suppliers and Ecobank in one stable place. It delivers end-to-end visibility of:

    • Document management – electronic control over invoicing, purchase orders and debit/credit notes
    • Financing – dedicated pre-approved credit lines, automated finance requests and customisable controls
    • Payments – set up of instructions for payment of accepted invoices on due dates or agreed dates
    • Reconciliation – auto-match and reconciliation of invoices against purchase orders, credit/debit notes and collections
    • Full security – best-in-class user access, authorisation controls, encryption and security software

    Key user features:

    • Electronic exchange and acceptance of purchase orders and invoices with counterparties
    • Automated matching of accepted purchase orders and invoices
    • Auto-payments set up against accepted invoices
    • Ability to request drawdown on preapproved loans for advance payments on accepted orders or to discount accepted invoices
    • Reconciliation of payments against accepted invoices and generating of customised reporting