MUMBAI: Infor Nexus™ has partnered with DBS Bank and have launched a pre-shipment financing solution for small and medium-sized enterprises (SME) suppliers in the former’s 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.
The partnership between the two, 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. DBS 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.
Divyesh Dalal, MD and Head, Global Transaction Services, DBS Bank India said in a statement, “We are proud to partner with Infor Nexus™ to launch a working capital financing solution for SME & MSME suppliers. The 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.”
The trade financing solution has been extended to SMEs in India, primarily in the apparel, footwear and textile industries. 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.
Gary Schneider, VP Financial Services, Infor Nexus™ said in a statement, “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.”
