Case Study 1
Profile of Client A
Sales Turnover: SGD 80 mil
Profit: SGD 5 mil
Client A’s Suppliers and Subcontractors
Due to Singapore’s deteriorating economy, the banks tend to be more conservative towards lending. Construction is one of the segments in which the banks will reduce their exposure on.
As a result, Client A’s Suppliers and Subcontractors are affected drastically.
Financing is always most difficult for SMEs due to the size and financial standing.
Now by tapping on their Employer – Client A’s good credit standing. OFI established a strategic partnership with Client A to facilitate the cash flow of its Suppliers and Subcontractors.
Credit Lines are granted to Suppliers and Subcontractors for financing Invoices billed to Client A. OFI will receive payments from Client A directly on due date.
The solution increased cash flow liquidity for the suppliers without adversely affecting the cash flow needs of Client A.
This is so as to protect the stability of Client A’s supply chain system. Hence, Suppliers and Subcontractors are in better position to manage their cash flow of their projects.
Case Study 2
Client B Profile:
Sales Turnover: SGD 29 mil
Profit: SGD 1.2 mil
Client B has a good financial standing. However, due to the low risk appetites of the banks, they have limitations in meeting Client B’s receivable financing needs. Therefore, it is resulting in disruption in Client B’s cash flow due to the long collection period from their debtors.
A Revolving Credit Line is granted to finance Client B’s account receivables with a short-term tenure of 4 months. OFI’s facility enables the Client B to enjoy a greater flexibility to facilitate their cash flow through a simple and quick financing instrument.
Supply Chain Ecosystem:
Due to the good payment conduct and improving financial performance, OFI would like to value add to Client B’s supply chain. Therefore, we established a set of solutions for Client B’s Suppliers and Subcontractors’ cash flow by financing their Invoices billed to Client B only.
Being a crucial part of Client B and its Supply Chain Ecosystem, OFI helps to foster a stronger buyer-supplier relationship.