DBS Bank, Infor Nexus Launch Pre-Shipment Financing Solution

Supply chain network Infor Nexus and DBS Bank have joined forces to launch a new pre-shipment financing solution for small- to medium-sized businesses (SMBs) in India that are in the Infor Nexus supply chain ecosystem.

This solution uses historical data from the Infor Nexus platform to provide data-based lending solutions that help suppliers meet their working capital requirements, the companies said in a Friday (Aug. 18) press release.

Unlike existing post-shipment financing solutions, this new offering allows suppliers to use their enhanced cashflows to fulfill orders before goods are delivered 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.

However, with this latest trade financing solution, the collaboration has expanded to include pre-shipment financing. The bank will utilize alternative supply chain data from the Infor Nexus platform, such as historical and real-time milestone information on the physical movement of goods.

This trade financing solution has been extended to SMBs in the apparel, footwear and textile industries in India, per the release. As part of the Infor Nexus ecosystem, DBS Bank will underwrite the trade financing facility applications of prospective SMB suppliers. The primary means to assess the risk and creditworthiness of suppliers will be through analytics-based data, rather than traditional documentation.

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, 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.

There have been a spate of firms, financial institutions and platforms — sometimes working together — focusing on trade finance and other tech-enabled working capital improvements. The efforts are international in scope and deliver the cash needed to keep supply chains flowing.