- Owner
- Supplier
- Counterparty
- Buyer, accepting invoices
- Bank
- Nominated discounting bank
- Per invoice
- Acceptance letter and bill of exchange
The relationship, agreed once
A receivable finance program holds the parts that do not change: the supplier raising the invoices, the buyer that accepts them, the discounting bank, and the terms on which invoices will be discounted.
What still happens invoice by invoice is the acceptance. Because the finance follows the buyer’s confirmation of a specific debt, each invoice needs its own acceptance letter and its own accepted bill of exchange — the program means the parties and the terms are already in place when it arrives.
The document set is defined at program level too, so a supplier knows exactly what to attach and the bank stops asking for the same thing twice.
The shape of the flow
The parties are fixed, the acceptance is not. The program names the buyer and the bank; every invoice still gets its own acceptance.
How it works on TradeOrigin
Program first, then a short path for every invoice under it.
Set up the program
Supplier, buyer, currency, tenor and the document set required for each invoice.
Nominate the discounting bank
The bank that will discount under the program, with its limit and terms.
Invoice raised and accepted
The supplier submits the invoice with its documents; the buyer signs the acceptance letter and accepts the bill of exchange.
Discount and settle
The bank discounts against the accepted maturity; the buyer pays the bank when it falls due.
Who it is for
Program owner
You discount regularly against the same buyer and want the setup done once.
Accepting party
You confirm invoices you were going to pay anyway, and a supplier you rely on is funded.
Nominated funder
A known supplier, a known buyer and a repeating document set — far less diligence per invoice.
What you get
Faster per invoice
Parties, terms and document requirements are already agreed.
Clear document expectations
The required set is defined up front, so nothing bounces back.
A defined obligation each time
Acceptance letter plus bill of exchange on every invoice.
One record per invoice
Each invoice keeps its own documents, pricing and maturity inside the program.
What the bank will ask for
Uploaded once, against the deal, and visible only to the counterparties on it.
Questions
How is this different from an SCF Program?
Ownership and pricing. This is supplier-led and priced against the accepted receivable; an SCF Program is buyer-led and priced on the buyer’s credit standing.
Does every invoice still need acceptance?
Yes. The acceptance letter and bill of exchange are what make each receivable bankable, and they are per invoice.
Can more than one bank discount under it?
The program nominates the discounting bank. Where a supplier wants competition on a particular invoice, that invoice can be put out to bid.
Related
Receivable Finance
Discount approved invoices early, against a buyer acceptance letter and bill of exchange.
ProgramSupply Chain Finance Program
The standing facility behind SCF: one program per buyer, its suppliers, its banks, their limits and charge terms.
ProductForfaiting
Sell medium-term export receivables without recourse and take the risk off your balance sheet entirely.