J.P. Morgan Supply Chain Finance Program

IMPORTANT INFORMATION FOR BUYERS AND SUPPLIERS

Solution | Global Supply Chain Finance | Corporations

J.P. MORGAN SUPPLY CHAIN FINANCE PROGRAM

What Is the J.P. Morgan Supply Chain Finance Program?

To accelerate payment and increase your cash flow, the Supply Chain Finance Program provides

early discount of your receivables at favourable discount rates that leverage your buyer’s strong

credit rating. J.P. Morgan has been successfully providing Supply Chain Finance to buyers and

their suppliers since 1994, and is now supporting customers with Supply Chain Finance solutions

across the globe.

Benefits

• Offers low-cost financing option

• Converts Accounts Receivable (A/R) to cash/working capital

• Mitigates buyer payment risk

• Enables more predictable cash flow

• Provides additional source of liquidity

• Generates cash much earlier in payment cycle

• Reduces Days Sales Outstanding (DSO)

• Offers automatic or manual discount options

• Delivers accessible and comprehensive reporting

Supply Chain Finance Program Customer Service

J.P. Morgan has experienced staff to assist you and can arrange for a conference or webcast

discussion about the program.

J.P. MORGAN SUPPLY CHAIN FINANCE PROGRAM

How Does Supply Chain Finance Work?

How to Enroll in the Supply Chain Finance Program

Suppliers complete legal (Receivables Purchase Agreement) documents and setup forms.

The Supply Chain Finance system is set up in two business days.

J.P. Morgan receives the full invoice amount from the buyer at maturity

Buyer sends approved invoices toJ.P. Morgan from ERP system

Supplier auto-discounts or chooses via Web to:a) Sell invoices today at a discount rate (Buyer Risk)

b) Wait for payment on maturity date of invoice

J.P. Morgan credits supplier on early payment date,net of discount or the full invoice amount at maturity

J.P. Morgan notifies supplier of optionto discount proposal via email

BUYER

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J.P. MORGAN

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3

SUPPLIER

J.P. MORGAN SUPPLY CHAIN FINANCE PROGRAM

How Is the Discount Calculated?The Early Pay Supply Chain Finance Program’s Pricing Formula:

Loan Type Annual Rate Cost

Savings from the J.P. Morgan Supply Chain Finance Program

Supply Chain Finance Cost Comparison

JPMorgan Chase is licensed under US patent numbers 5, 910,988, and 6, 032 and 137.

© 2020 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC. All services are subject to applicable laws and regulations and service terms. Not all products and services are available in all geographic areas. Eligibility for particular products and services is subject to final determination by J.P. Morgan and/or its affiliates/subsidiaries.