Through this innovative payment solution Wal-Mart is offering their suppliers a traditional trade instrument, a Trade Acceptance (TA). Upon Wal-Mart’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

Wal-Mart sends individual contract/Purchase Order (PO) details to Citibank.

Presentations

Wal-Mart’s Vendors will produce the contracted merchandise and ship it to Wal-Mart.

Vendors will present the documents mandated in each Wal-Mart PO attached to the required Citibank Cover Letter and draft 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 Wal-Mart 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 Wal-Mart’s payment approval.

Payment

Once Wal-Mart 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 Wal-Mart 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 Wal-Mart) and Wal-Mart’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 Wal-Mart 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.