Improving the SMEs Access to Trade Finance DRAFT
in the OIC Member States
100
drawn on the buyer for the goods exported. The bank may prefer to purchase and discount a
bill drawn on the buyer for the goods exported.
5. Approved Payables Finance
Approved Payables Financing allows sellers to sell their receivables and/or drafts relating to a
particular buyer to a bank at a discount as soon as they are approved by the buyer. This allows
the buyer to pay at normal invoice/draft due date and the seller to receive early payment. The
bank relies on the creditworthiness of the buyer.
6. Receivables Purchase
Receivables Purchase allows sellers to sell their receivables/drafts relating to one or many
buyers to their bank to receive early payment. The bank may require insurance and/or limited
or full recourse to the seller to mitigate the risk of the pool of receivables.