Supply Chain Financing

Objectives

Working capital financing in order to accelerate Supplier cash flow based on acceptance of foreclosed invoices.

Financing Principles

Conventional and Sharia.

Debtor Criteria

• a Supplier recommended by the Principal who carries out activities in the framework of export or export support activities;
• Have a trade relationship (as a Supplier) with the Principal for at least 1 (one) year;
• Companies, management and shareholders based on OJK SLIK have collectability Current.
• Have business activities for at least 2 (two) years;
• There is no negative information and no legal issues involved company or ultimate owner, management and shareholders.
• Not an affiliation/business group of Principal, except for affiliation/business group of BUMN Companies.

Currency

Available in Indonesian Rupiah or foreign currency at Indonesia Eximbank.

Interest Rate

Discount rate.

Fees/costs

• Provisions;
• Commitment Fees;
• Administration;
• Late Charge;
• Expedited Payment.

Scheme

1. LPEI has PKS with Principal (Debtor / Non Debtor);
2. The Principal submits a Recommendation Letter regarding prospective Suppliers to LPEI;
3. The Principal submits a Work Order/Purchase Order/Sales Order to the supplier;
4. Supplier sends the following goods with bills / invoices to the Principal.
5. The principal accepts the bill/invoice from the supplier or provides a confirmation letter and sends it back to the supplier by attaching a BAST;
6. The supplier submits an application for withdrawing the SCF facility from LPEI by attaching the invoice/invoice that has been accepted or by enclosing a confirmation letter from the Principal, BAST and other required documents;
7. LPEI confirms to the principal the bills/invoices accepted by the principal;
8. LPEI disburses SCF financing to Suppliers according to bills/invoices accepted by the principal or based on a confirmation letter to the account designated by the Supplier/operational account;
9. The Principal pays the Supplier's receivables/bills no later than the maturity date to LPEI by means of the Principal paying directly to LPEI or LPEI debiting the Principal's account in the amount of the invoice/invoice funded by LPEI including interest, fines and other fees (if any).