News Update

DBS Bank Collaborates with Infor Nexus to Facilitate Pre-Shipment Finance for SMEs

• ByStartupStory     |    August 19, 2023

Supply chain network Infor Nexus and DBS Bank have united to introduce an innovative pre-shipment financing solution designed for small- to medium-sized businesses (SMBs) within India’s Infor Nexus supply chain ecosystem.

This pioneering solution leverages historical data extracted from the Infor Nexus platform to offer data-driven lending solutions, supporting suppliers in meeting their working capital needs, according to a press release issued on Friday (August 18).

In contrast to conventional post-shipment financing options, this novel offering empowers suppliers to utilize improved cashflows to fulfill orders even before goods are dispatched to buyers.

“This new offering demonstrates how data can transform supply chain finance,” Gary Schneider, vice president of financial services at Infor Nexus, said in the release. “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.”

Previously, the partnership between DBS Bank and Infor Nexus focused on providing early payments to suppliers on a post-shipment basis, the release said.  The bank will harness alternative supply chain data from the Infor Nexus platform, including historical and real-time milestone information regarding the physical movement of goods.

This trade financing solution has been extended to SMBs operating in India’s apparel, footwear, and textile industries. As part of the Infor Nexus ecosystem, DBS Bank will evaluate the trade financing facility applications of prospective SMB suppliers. The assessment of supplier risk and creditworthiness will rely on analytics-based data rather than traditional documentation.

By obtaining financing for pending orders even before invoices are confirmed, suppliers can mitigate cash flow needs that occur between shipment, delivery, and when the payment is received, the release said.

 “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 [SMB] suppliers at a significant scale, unlocking new avenues of growth,” Divyesh Dalal, managing director and head of global transaction services at DBS Bank India, said in the release.

The ongoing efforts in the trade finance realm underscore a broader trend of firms, financial institutions, and platforms collaborating to enhance working capital through technology. These initiatives, with a global reach, play a crucial role in ensuring the liquidity necessary to maintain the smooth operation of supply chains.

 

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