K-Supply Chain

Key Features

K-Supply Chain Solutions, the only one-stop console to manage your Supply Chain Financing.

K-Supply chain solutions are established to provide additional working capital to those buyers and suppliers aiming to improve efficiency of their supply chains.  In addition to better liquidity, the program will also strengthen supply chain bonding between buyers and suppliers.

Service Details
 

K-Buyer Financing is designed to enhance the competitiveness of sponsors and buyers by providing effective financing solution to their supply chains. The program provides additional working capital at a competitive interest rate to selected buyers for purchasing goods or services from their Sponsor. Benefits to buyer include the “extension of payment term” offered by the bank and with the help from Sponsor, “Discount payment” option maybe available for buyers who make early payment.  On Sponsor due date, buyer can simply choose to debit their deposit account or select drawdown credit facilities through an online channel called Electronic Supply Chain Finance (eSCF).   
 

Benefits to the Supply Chain

Sponsor

Buyer

Reduce credit risk and improve A/R management

Access to additional working capital at competitive rate

Sales growth and increase buyer loyalty

Additional credit line to support sales growth

Reduce overall supply chain costs

Simple payment process

  

Buyer selection criteria

  • Must be a limited liability company reside in Thailand, duly incorporated and validly existing under the law of its jurisdiction of incorporation
  • Must be the Sponsor’s trade counter party for at least 1 year or has an experience in its business for not less than
    2 years
  • Evidence of sales growth and operate profitably in the passed year
  • Not in financial restructuring process
  • Not NPL or blacklist in credit bureau

 

K-Buyer Financing Channels

  • Electronic Supply Chain Financing (eSCF)

     - Most convenience channel for customer with internet access. Without having to visit bank, buyer can perform
       payment and drawdown transactions comfortably at their offices or at homes. 

  • Fax and postal

     - For a full coverage, the bank extend its support channels further to include fax and postal for those buyers
        with limited access to internet

 

Drawdown process via fax or postal

Buyer financing program is a control credit facility that will disburse payment only to sponsor upon buyer instruction.  Through these channels, buyers are requested to follow the proceeding steps while supporting their drawdown request with the required documents as listed below. 

1. Document preparation

  • Cover page
  • Evidence of receipt of loan
  • Drawdown request
  • Invoice  

2.  Postal & Fax drawdown process

  • Registered mail channel:  The required documents are to be sent to the bank one day (before noon) prior to the drawdown request.
  • Fax channel: Buyers are allowed to send required documents via fax to achieve a faster drawdown request.  However, all required documents are to be sent to the bank via a register mail within 5 working days.

3. Settlement

  • At due date, bank will automatically deduct the principle and interest due from a pre-specified buyer account.
  • Buyer shall be charged at the higher rate on all overdue amount.

 

K-Supplier Financing, Working capital for liquidity at the lower funding cost with no collateral

 

K-Supplier Financing is designed to enhance suppliers’ capabilities to supply goods or services to Buyer (Sponsor) and help Sponsor to ensure the continuity and quality of supply. With the program, KBank offers additional working capital to suppliers based on their credit term with Sponsor at a competitive price with no collateral required. 

In general, the concept of K-Supplier Financing is much alike the product called “Factoring” except that the benefit to suppliers is more substantial. With corporation from Sponsor, bank can approved supplier loan with no collateral within 3 business days after full credit documents is submitted to KBank.

 

Benefits to the Supply Chain

Supplier

Sponsor

Access to additional working capital at competitive rate

Negotiate for longer credit term from suppliers

Enhance capabilities to supply goods or services

Support good relationship with suppliers

On time payment from Sponsor and improve collection process

Ensure continuity and quality of supply

  

Standard Criteria for Supplier Selection

  • Has been a limited liability company reside in Thailand, duly incorporated and validly existing under the law of its jurisdiction of incorporation
  • Has been Sponsor’s trade counterparty for at least 1 years and has an experience in its business for not less than 3 years
  • Never fail to supply product according to Sponsor’s purchase order during the last 2 years
  • Not Sponsor’s affiliate or subsidiary and no person in its management team is in Sponsor’s management team
  • Not NPL or blacklist in credit bureau
  • Not in financial restructuring process

K-Supplier Financing Channels

  • Electronic Supply Chain Financing (eSCF)

     - Most convenience channel for customer with internet access. Without having to visit bank, supplier can perform
       payment and drawdown transactions comfortably at their offices or at homes. 

  • Fax and postal

   - The bank extend its transaction channels further to include fax and postal for those suppliers with limited 
      access to internet


 

Drawdown process via fax or postal

Through these channels, suppliers are requested to follow the proceeding steps while supporting their drawdown request with the required documents as listed below.

1. Document preparation

  • Cover page
  • Evidence of receipt of loan
  • Drawdown request
  • Copies of Invoices

2. Postal & Fax drawdown process

  • Registered mail channel:  The required documents are to be sent to the bank one day (before noon) prior to the drawdown request.
  • Fax channel: Available for a quick drawdown request, however, all original required documents are to be sent to the bank via a register mail within 5 working days.

 

3. Settlement

  • At due date, Sponsor will transfers payment to supplier’s account at KBank.
  • The bank will automatically deduct the loan principal and interest due from this account
  • In case of short payment from Sponsor, supplier needs to transfer its own cash to repay bank loan otherwise supplier credit facility will be freezed.
  • Overdue amount will be charged at bank default rate.
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