Through this innovative payment solution The Home Depot is offering their suppliers a traditional trade instrument, a Trade Acceptance (TA). Upon THD’s approval of their supplier’s presentations, the suppliers can seek to shorten their DSO and accelerate their payment on a true sale basis by requesting Citi’s purchase of the TA.

Advising

THD sends individual contract/Purchase Order (PO) details to Citibank.

Presentations

THD’s Vendors will produce the contracted merchandise and ship it to THD.

Vendor will present required THD documents to Citibank.

Citibank will review each presentation against the PO terms.

Notifications

Using a work flow similar to that of a LC, Citibank will notify its examination results to THD and its Vendors indicating whether a presentation is clean or discrepant/non-compliant. Under Open Account, there is no LC and no Citibank payment commitment. All clean or discrepant presentations require THD’s payment approval.

Payment

Once THD has approved a draft/presentation, Citibank will follow the instructions each vendor has provided to us via its “Sign Up Now” information provided. (Refer to the “Home Page”). Approval of clean/complying presentations typically occurs 3 days from Citibank’s receipt. *If the cover letter requested Citibank to purchase the THD Trade Acceptance, and if Citibank so agrees, we will effect payment to the Vendor, at a discount, using the agreed upon program rate; (Click here for pricing information.) or

*If Vendor has not requested Citibank to purchase the TA, then Citibank will inform the Vendor of the payment’s maturity date (as determined from the Draft's tenor and as confirmed by The Home Depot) and Home Depot’s payment will be sent to you upon the draft’s maturity date.

On each presentation’s cover letter the vendor/supplier decides whether or not to sell the THD accepted TA to Citibank, N.A., on a case-for-case basis. However, the sale of each TA must be for the whole draft value. No partial draft sales will be considered.

Non complying/discrepant presentations may delay a presentation’s acceptance.