- Combining the worldwide risk management organization and business network of Citibank in 105 countries, the effectiveness of this program will be maximized.

- Citibank aims to offer better environment by establishing the standard criteria of large sized companies and SMEs through this program.

- Similarly, this program intends to provide post-shipment financing to the qualified suppliers exporting to Global Relationship Banking customers through the unified and clear approval procedure throughout the world.

Feature of this program is as follows

- Post-shipment financing under the pre-approved export financing program

- Usually short term (less than 180 days) subject to ordinary production cycle of the concerned industry.

Discount or purchase export receivable of the below

- Negotiable or non-negotiable instrument (e.g. bill of exchange, promissory note or invoice, etc.)

- Instrument with/without full or limited recourse to the seller (Recourse is to compensate the following dilution risk: discount, return, rebate, offset, and other commercial dispute, etc.)

Other types of structures may be added based on the experience and necessity.

Product Structure: Sponsored Receivables Finance

- Citibank maintains primary relationship with the seller and finance based on its account receivables.

Sales Increase

- Seller can create additional capacity for incremental sales to existing customers through this financing program. Also this product allows the seller accommodate request for maturity extension from buyers.

Liquidity and Working Capital

- Although the seller may have several financing windows, he can turn around working capital in a simple and prompt manner, and secure cash.

Risk Mitigation

- The seller can mitigate risk tremendously through the structure with/without limited recourse.

Balance Sheet Management

- The seller can reduce DSO (day of sales outstanding) by selling out the account receivables through this program.

- Sponsored Receivables Finance

- Exporting company, who deals in remittance method and needs post-shipment financing. Buyer’s credit rating is excellent while seller’s is bad.

- Exporting company who gets post-shipment finance under D/A currently without enough credit line available.

- Exporting company who intends to converts to remittance method from current L/C method.

- Exporting company who intends to increase sales through changing payment term.