TO support the liquidity needs of small and medium-sized enterprises (SMEs), DBS Bank announced April 9 that it has launched a digital financing facility with Haier Group, a Chinese consumer electronics and home appliances enterprise, to enable its ecosystem of distributors to access lower cost financing for their purchase orders in a simple and fast manner.
This forms part of Haier’s and DBS’ broader regional relief efforts to help businesses, many of which are SMEs, to stay afloat during these challenging times.
Accessible by Haier’s nationwide network of distributors via its digital supply chain platform, the integrated DBS financing facility enabled by the bank’s APIs offers distributors online financing for their purchase orders within 24 hours. This helps distributors shorten their cash conversion cycle and optimize their working capital.
“Providing financial sustenance to SMEs that form the commercial ecosystems of large corporates is of utmost importance in this unprecedented global trade situation. The DBS-Haier digital financing solution ensures that supply chains continue to operate in the face of disruptions,” says John Laurens, group head of global transaction services at DBS.
Enhancing working capital management and access to financing is critical for both large corporates and SMEs especially in the current business environment, and technology has proven to be a useful tool in this aspect. By using DBS’ APIs to create an integrated financing facility plugged into an industry anchor’s supply chain platform, the benefits flow both ways.
For Haier, their sales and distribution channels are given extra support; and for its SME distributors, they enjoy an extension on payment terms, helping them with essential cash flow and working capital management needs.
DBS is the first foreign bank to cooperate with Haier's digital supply chain finance business. “At the early onset of the pandemic, DBS took the initiative to accelerate the implementation of digital financing lines for our distributors, to get the funds they need with as little physical interaction as possible,” says Yang Hongxing, head of supply chain finance at Haier Group. “The speed at which financing can be offered to our distributors and the ease of being onboarded, have also elevated our customer experience journey to new heights.”
With DBS’ digital financing facility, Haier’s customers can access low-cost financing with just a few clicks of the mouse. DBS and Haier’s supply chain finance team will continue to jointly promote global cooperation in Haier's upstream and downstream supply chain finance going forward.
The bank saw close to 30 distributors onboarded on the fully digital financing facility targeting distributors in the first week of launch. Additional capabilities include integrated online account opening and onboarding, and facial recognition and biometric features for enhanced security.
The bank also completed its first distributor financing request in March, where the distributor received the requested financing in under 30 minutes from the point of submission. Laurens adds: “The speed of financing gives businesses a fighting chance to tide through the downturn and emerge more resilient to ride the economic upturn when it returns.”
DBS is the only non-Chinese bank appointed by Haier for this digital financing facility. The other three participating banks are China Everbright, Bank of Shanghai and MYBank.