GE Capital sells Trade Payable Services platform to Mitsubishi

The entire mechanism of offering suppliers discounted payment terms has been divested.

GE Capital has sold its Trade Payable Services (TPS) supply chain finance platform to MUFG Union Bank N.A., a subsidiary of MUAH, the U.S. intermediate holding company of Japan’s Mitsubishi UFJ Financial Group, Inc. The terms of the transaction were not made public.

According to the Norwalk-headquartered GE Capital, the TPS platform supports relationships with GE suppliers worldwide. Upon the completion of the acquisition, GE suppliers will be able to transition to a new program with MUFG Union Bank over an 18- to 24-month period.

“This is a positive development for GE Capital and for our GE industrial partners, external customers and the suppliers we work with globally,” said Alec Burger, president of GE Capital. “MUFG’s position as a leading global financial institution and its strong supply chain finance capabilities make it an ideal fit for our TPS platform. We look forward to working with MUFG and are committed to ensuring a smooth transition of the platform from GE Capital.”

“Through the addition of TPS, MUFG is now able to deliver a full suite of working capital solutions that address our clients’ growing needs to optimize short-capital positions,” said Maureen Sullivan, MUFG’s head of supply chain finance for the Americas. “We look forward to introducing MUFG’s clients to our new team and platform as we extend our offering of supply chain finance capabilities.”

https://westfaironline.com/110377/ge-capital-sells-trade-payable-services-platform-mitsubishi-subsidiary/

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GE ran out of the ability to get funding from external banks and by selling their vendor financing platform, GE gets cash and the ability to have the new owner of vendor financing sell debt from the new owners side and then use that cash to float GE through the vendor financing program and stay alive from a cash flow perspective. GE in turn can use the cash dedicated to TPS to help offset their other cash constraints.

This sale indicates not just a need for income but a desperate need for cash and the exteam inability to get additional lines of credit or tap public debt markets.

Thanks for the post what does it mean though?

Huh "GE offered SUPPLIERS discounted payment terms" wait that makes no sense a supplier offers a greater discount so they want no payment or less money like its a good thing for them HAHHAHAHAHA

ASK GOOGLE what is a TPS - A trade payable is an amount billed to a company by its suppliers for goods delivered to or services consumed by the company in the ordinary course of business.May 15, 2017

This smells fishy like GE Capital has no Capital to Pay for Suppliers. Fix that spread shet FIX it quick it smells. I told that black jack dealer i was "short on capital" to cover that next hand but i got MUFG to help me out.

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GE Capital sells Trade Payable Services platform to Mitsubishi

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