DBS and Infor Nexus Collaborate to Enhance SME Cashflows with Data-Based Trade Financing Solutions
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, 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
