SMEs gain new trade financing solution

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DBS Bank (Hong Kong) Limited and GS1 Hong Kong have launched a digital post-shipment trade financing solution powered by alternative data.

With this offering, small and medium-sized enterprises (SMEs) on GS1 Hong Kong’s ezTRADE platform can utilise their trade data to access financing in a digital and straight-through manner instead of manually submitting invoices.

DBS Bank and GS1 Hong Kong’s innovation uses trade transaction data to provide SMEs in the fast-moving consumer goods (FMCG) and food & beverage (F&B) sectors with a digital post-shipment trade solution. This digital offering makes it easy for SMEs to access working capital.

With this solution, SMEs can enjoy faster access to funding to drive their business growth.SMEs no longer need to submit hundreds of invoices manually to the bank. This paperless approach to trade financing not only frees SMEs from repetitive document submission, but also paves the way for more digital and sustainable business practices.

This solution redefines the trade financing journey for SMEs with DBS availing financing through a streamlined credit assessment process. Through DBS’ predictive analytics capabilities, invoice data is used to assess the financial health of SMEs.

Alex Cheung, Managing Director and Head of Institutional Banking Group of DBS Hong Kong said the partnership demonstrates the bank’s steadfast commitment to the SME community. “By enabling the use of their trade data for enhanced access to financial services, SMEs can further fortify their business resilience,” said Mr. Cheung.

“This is an optimised solution that is available to all GS1 Hong Kong members using the ezTRADE platform for transactions. SMEs can enjoy a fast turnaround time and draw down on their facility to meet the needs of their business”.  

Anna Lin, Chief Executive of GS1 Hong Kong commented, “This new partnership with DBS capitalises on our platform’s rich datasets to enhance SMEs’ cash flow, bringing great value to our members in their continued digitalisation journey.”

Sandy Tan, Head of Ecosystems for Institutional Banking Group, DBS Bank (Hong Kong) Limited shared, “SME suppliers receive hundreds of invoices per month and may have limited resources to submit documentation to the bank for trade financing purposes. Through our collaboration with GS1 Hong Kong, we have the ability to use alternative platform data to give us visibility on an SME’s health and support their working capital needs”.