Working Capital

Supply-Chain Financing

Free up working capital in your supply chain

Free up valuable cash trapped in the supply chain with DBS Supply-Chain Financing (SCF). This innovative working capital solution benefits all parties involved by leveraging our relationships with anchor corporates to inject liquidity into the supply chain. We offer both supplier and distributor/buyer finance programmes as part of our SCF solutions.

 

Supplier Finance

We finance sales to corporate buyers by accessing invoice information directly from buyers who have signed an agreement with us:

  1. As the supplier, you deliver the goods and invoice to your buyer
  2. On a pre-agreed date, your buyer sends us his/her payables listings (invoices and credit/debit notes)
  3. We then pay you early
  4. We collect payment from your buyer on the invoice due date

 

Benefits to you as the supplier

  • Improves working capital
  • Receive financing of up to 100% of the invoice value
  • Enjoy competitive interest rates
  • No additional security required

 

Distributor/Buyer Finance

We leverage our relationship with an anchor corporate that sells to many distributors/buyers in order to provide you with financing:

  1. The seller sells goods and invoices to you as the buyer
  2. You then submit copies of your invoices and application forms. DBS conducts an independent verification of the invoices with your seller
  3. On the date the invoices are due, we pay the seller on your behalf
  4. Repayment is then made by you on an agreed date

 

Benefits to you as the distributor/buyer

  • Offers additional working capital financing
  • Frees up liquidity to increase business volume
  • Improves relationships with your seller

 

Why choose DBS Supply-Chain Financing?

  • Benefit from DBS’ experience as a pioneer in supply-chain solutions. We established the first supplier-finance structure for the Singapore retail industry. This was named Best Trade Finance Deal in Singapore at The Asset Triple A Transaction Banking Awards 2012.
  • Minimise hassle and reduce turnaround time with our streamlined on-boarding process
  • Reduce paper transactions with automated processing

FAQs

Is this a new type of financing?
Relatively speaking, yes. Supplier-Finance structures originated in North America and Europe, and are becoming increasingly prevalent in Asia as a result of trade links with the West. Buyer-Finance structures are more prevalent in South Asia, where channel-Finance structures are often used in the automotive or electronics industries for example. DBS launched an award-winning pioneer deal for the Singapore retail sector.
How does it work?

Major retailers may use large-scale Supplier-Financing structures to ensure the viability of their supply chain. They allow suppliers to leverage their credit rating in order to provide them with greater liquidity, ensuring they can meet demand.

During the global financial crisis, Supplier-Finance structures helped many companies stay afloat when other bilateral loan facilities were cancelled.

How will SCF affect my transaction processes?

Payment patterns and processes differ between companies, however our product specialists tailor the program to suit existing invoicing and payment processes. As such, your underlying transactions require minimal change.

What kind of sales/purchases qualify for this type of financing?
Trade transactions must be on open account terms and occur on a recurring basis in order to qualify. Hence, one-off sales or purchases do not qualify.
What documents do I need to provide when I request for SCF?

For supplier finance, we tend to request information directly from the corporate anchor, eliminating the need for you to provide trade documents. For distributor/buyer finance, we may require the usual trade documents including but not limited to the purchase order, invoice and delivery documents.

 

How do I apply?


SCF structures are led by a corporate client, known as an anchor. As such, we approach suppliers and distributors only once we’ve negotiated an agreement with a suitable anchor. Please call us at 1800 222 2200 for more information.

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