Trade Finance

In increasingly competitive environment efficient supply chain management and working capital optimization are key to success of your business. AO Citibank Supplier Finance Program supports your suppliers' financing needs while ensuring uninterrupted supply flow and improving your own working capital through longer payment terms.

Supplier Finance

Following the global trends, more and more companies in Russia are moving from pre-payment to open account trade terms. This puts additional pressure on suppliers' working capital and may entail need of extra financing to support supply at the required level. AO Citibank Supplier Finance program is designed to provide short-term trade financing to selected suppliers of our well-established customers.

Key Benefits for Buyers
  • A steady flow of goods from suppliers
  • Enhanced relationships with suppliers
  • Extended open account payment terms
Key Benefits for Suppliers
  • Accelerated cash flow
  • Access to cheaper source of financing
  • Processing efficiency
  • Opportunity to create credit history with Citi

Under the Supplier Finance program, AO Citibank works closely with the buyer to tailor a structure, which in turn enables AO Citibank to provide receivables financing to those suppliers designated. Essentially, AO Citibank enters into a financing arrangement that includes purchasing of their trade receivables and advancing funds to them. AO Citibank then collects receivables directly from the buyer. There are two main financing structures under the program - post-shipment and pre-shipment finance.