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DBS Bank and Infor Nexus partner to enhance trade financing solutions for SMEs

Monday 21 August 2023 15:13 CET | News

DBS Bank and Infor Nexus have collaborated to launch pre-shipment financing for small and medium-sized enterprises (SME) suppliers in the Infor Nexus supply chain ecosystem.

This solution utilises historical data from the Infor Nexus platform to provide data-based lending solutions that help suppliers meet their working capital requirements. Post-shipment financing solutions already exist in the market, while pre-shipment financing is still a needed aspect, as it allows suppliers to use their enhanced cashflow to fulfil orders before goods are delivered to buyers.

Until now, the collaboration between DBS Bank and Infor Nexus was focused on availing early payments to suppliers on a post-shipment basis. The latest trade financing solution completes the entire pre-shipment and post-shipment financing cycle, aiming to establish a solid and end-to-end digital working capital financing solution. This offering builds upon the digital trade financing capabilities of DBS, which have been integrated into the Infor Nexus network since 2020. The bank will use alternative supply chain data, such as historical and real-time information on the physical movement of goods from the Infor Nexus platform.

This trade financing solution is extended to SMEs in India, mainly for the apparel, footwear, and textile industries, which are regarded as one of the main growth sectors for the country’s economy. As part of the Infor Nexus ecosystem, DBS Bank will underwrite the trade financing facility applications of prospective SME suppliers. The analytics-based data will act as the primary means to assess the risk and creditworthiness of suppliers instead of traditional documentation, which is often regarded as the reason why suppliers become underfunded or face challenges in accessing necessary working capital.

By obtaining financing for pending orders, even prior to invoices being confirmed, suppliers would be able to mitigate cashflow needs that occur between the times of shipment, delivery, and when the payment is received.

DBS Bank and Infor Nexus have collaborated to launch pre-shipment financing for small and medium-sized enterprises (SME) suppliers in the Infor Nexus supply chain ecosystem.

More about DBS Bank 

Headquartered in Singapore, DBS Bank works in three major Asian markets: Greater China, Southeast Asia, as well as South Asia. The bank states that it is committed to supporting SMEs as they navigate the ever-changing economic landscape with solutions that would enable them to future-proof their businesses.

The expanded network of DBS Bank India has resulted in more physical touchpoints for SMEs across the country. The branch presence in India now covers more than 100 SME hubs and more than 80% of the addressable SME market in the country. Leveraging the feature of its data-driven digital platform for customer onboarding and servicing, DBS Bank India has achieved a 100% digital onboarding rate, with 85% of transactions now conducted digitally.  

More about Infor Nexus 

Headquartered in the US, Infor Nexus is a global supply chain platform. The company connects a network of over 85.000 brands, retailers, manufacturers, suppliers, logistics providers, and banks on a single-instance network platform, aiming to orchestrate global supply chain processes from source to delivery and payment. Companies streamline their operations, minimising inefficiencies while gaining data-driven insights and optimising the flow of capital for improved agility, resilience, and sustainability.

Recognising the significance of having enough capital in supply chains, Infor Nexus aims to connect banks and supply chains. This involves combining trade finance with supply chain operations, providing greater opportunities for banks to provide necessary funds during various points of the transaction. This would help reduce risk, improve performance, and strengthen the financial health of supply chain networks.

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Keywords: supply chain finance, banking, SMEs, SME lending
Categories: Banking & Fintech
Companies: DBS Bank, Infor Nexus
Countries: India
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