A long-time leader in providing supply chain solutions to clients in Japan, MUFG has now expanded its capabilities globally. We fund lines in excess of $4.5 billion in more than 45 programmes throughout North America, Europe and Asia.
MUFG is able to act as a participant in a variety of supply or vendor related programmes, in multiple currencies. Within Europe, MUFG participates in 16 transactions through SCF platforms operated by either SCF agent banks or third party platform providers.
SCF has many benefits, the key ones being allowing the buyer to extend their payment terms, while allowing the supplier to be paid earlier, using funds provided by MUFG.
Another incentive for the supplier is that the discount paid on this early payment is based on the credit profile of the buyer, and the funds advanced don't use its own credit lines.
One example of our wide-ranging capabilities is MUFG's participation in a pan-European SCF programme for one of our clients. We support this client by providing an uncommitted credit line, funding invoices of up to 360 days in multiple currencies. The suppliers request discounted early payment, with funds paid to them by the third party platform provider to which MUFG provides payment.
Marshall Bailey joins Board of MUFG Securities EMEA as Chair