DBS and Infor Nexus™ collaborate to enhance SME cashflows with data-based trade financing solutions
Partnership will enable SME suppliers to gain access to timely working capital and capture business opportunities
One of the first banks to provide pre-to-post shipment financing solutions driven by alternative platform data
Infor Nexus™ and DBS Bank, in partnership, have announced the launch of pre-shipment financing for small and medium-sized enterprises (SME) suppliers in the Infor Nexus™ supply chain ecosystem. This pathbreaking solution utilises historical data from the Infor Nexus™ platform to provide data-based lending solutions that help suppliers meet their working capital requirements. While post-shipment financing solutions already exist in the market, pre-shipment financing is a game changer as it allows suppliers to use their enhanced cashflows to fulfil orders before goods are delivered to buyers.
The partnership between DBS Bank and Infor Nexus™ was, until now, primarily focused on availing early payments to the suppliers on a post-shipment basis. The latest trade financing solution completes the entire pre-shipment and post-shipment financing cycle, establishing a robust end-to-end digital working capital financing solution. The offering builds upon the industry-leading digital trade financing capabilities of DBS, which have been seamlessly integrated into the Infor Nexus™ network since 2020. The Bank will use alternative supply chain data, such as historical and real-time milestone information on the physical movement of goods from the Infor Nexus™ platform.
The trade financing solution has been extended to SMEs in India, primarily in the apparel, footwear and textile industries, which are major growth sectors for the 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[1], which often results in many suppliers being underfunded or facing challenges in accessing necessary working capital. By obtaining financing for pending orders, even before invoices are confirmed, suppliers can mitigate cashflow needs that occur between shipment, delivery and when the payment is received. DBS is one of the first banks to offer such a unique solution, which has the potential to revolutionise SME financing.
Speaking on the partnership, Divyesh Dalal, MD and Head, Global Transaction Services, DBS Bank India said, “We are proud to partner with Infor Nexus™ to launch a one-of-a-kind, end-to-end working capital financing solution for SME & MSME suppliers. DBS Bank understands the critical importance of working capital requirements for small businesses to scale up in their respective industries. The innovative e2e working capital finance offering will not only address the manufacturer’s cashflow needs to produce goods (per PO) but also enable them to collect export proceeds in a timely and cost-effective manner through a trusted partner – Infor Nexus™. The availability of Purchase Order finance fulfils a long unmet need of the SME/MSME manufacturer. Leveraging our robust digital capabilities and Asian connectivity, this ecosystem partnership reinforces our dedication to business transformation through data insights and digital technology, connecting multinational anchors with SME suppliers at a significant scale, unlocking new avenues of growth.”
Gary Schneider, VP Financial Services, Infor Nexus™ said, “This new offering demonstrates how data can transform supply chain finance. The pre-to-post shipment financing will enable Infor Nexus™ to provide a complete and integrated solution to improve supply chain efficiency and suppliers’ cash flow. By partnering with DBS, Southeast Asia’s largest bank, we will bring a dependable and efficient source of capital to our customers, extending the range of attractive supplier financing options, such as purchase order financing, invoice invoicing and sustainable supply chain financing, to deliver added value to more suppliers on our platform.”
DBS Bank is committed to supporting SMEs as they navigate the ever-changing economic landscape with solutions that enable them to future-proof their businesses. The expanded network of DBS Bank India with ~530 branches across 350+ locations has resulted in more physical touchpoints for SMEs across the country, complementing the bank’s awarded digital offering. The DBS 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 power of its data-driven digital platform for customer onboarding and servicing, DBS Bank India has successfully achieved a 100% digital onboarding rate, with 85% of transactions now conducted digitally. The Bank’s approach of fostering ecosystem partnerships opens up business opportunities and enables enterprises to unleash their full growth potential.
About DBS
DBS is a leading financial services group in Asia with a presence in 19 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia. The bank’s “AA-” and “Aa1” credit ratings are among the highest in the world.
Recognised for its global leadership, DBS has been named “World’s Best Bank” by Global Finance, “World’s Best Bank” by Euromoney and “Global Bank of the Year” by The Banker. The bank is at the forefront of leveraging digital technology to shape the future of banking, having been named “World’s Best Digital Bank” by Euromoney and the world’s “Most Innovative in Digital Banking” by The Banker. In addition, DBS has been accorded the “Safest Bank in Asia“ award by Global Finance for 14 consecutive years from 2009 to 2022. Additionally, DBS Bank was ranked among the top 3 on Forbes’ list of the World’s Best Banks in India for three consecutive years, from 2020 to 2022.
DBS Bank has been present in India for 29 years, opening its first office in Mumbai in 1994. DBS Bank India Limited is the first among the large foreign banks in India to start operating as a wholly-owned, locally incorporated subsidiary of a leading global bank. DBS provides a range of banking services for large, medium, and small enterprises and individual consumers in India. In November 2020, Lakshmi Vilas Bank was merged with DBS Bank India Limited. The bank now has a network of ~530 branches in 19 Indian states.
As a bank born and bred in Asia, DBS understands the intricacies of doing business in the region’s most dynamic markets. DBS is committed to building lasting relationships with customers, as it banks the Asian way. Through the DBS Foundation, the bank creates impact beyond banking by supporting social enterprises: businesses with a double bottom-line of profit and social and/or environmental impact. DBS Foundation also gives back to society in various ways, including equipping communities with future-ready skills and building food resilience. In 2020, DBS introduced the “Towards Zero Food Waste” initiative as part of a global sustainability practice to encourage a shift in behaviours and mindsets to reduce food waste.
With its extensive network of operations in Asia and emphasis on engaging and empowering its staff, DBS presents exciting career opportunities. For more information, please visit: www.dbs.com/India
About Infor Nexus™
Infor Nexus™ is the leading global supply chain platform. Infor Nexus connects a network of over 85,000 brands, retailers, manufacturers, suppliers, logistics providers and banks on single-instance network platform to seamlessly orchestrate global supply chain processes from source through to delivery and payment. Companies streamline their operations, eliminating inefficiencies and waste while gaining data-driven insights and optimise the flow of capital for improved agility, resilience, and sustainability.
For over twenty years, Infor Nexus has connected companies to their network partners to automate global trade processes, including procure to pay automation, transportation management, supplier collaboration, trade finance and supply chain visibility. Recognising the importance of the availability of capital in supply chains, Infor Nexus uniquely connects banks and supply chains, integrating trade finance to supply chain processes providing greater opportunities for banks to provide needed capital at various points throughout the transaction lifecycle, improve and reduce risk, improve performance and the financial health of supply chain networks
