HSBC Vietnam rolls out supply chain finance platform

By Tay Lan - Aug 27, 2019 | 03:30 PM GMT+7

TheLEADERThe London-based bank has launched its web-based supply chain finance in Vietnam to enhance trade experience for both buyers and suppliers.

HSBC Vietnam rolls out supply chain finance platform
The web-based interface HSCF has now been launched in Vietnam

The web-based interface HSBC Supply Chain Finance (HSCF) has now been introduced by HSBC in Vietnam, following its successful implementation in France, Canada, Australia, the United Arab Emirates, Singapore, Thailand, South Korea and Malaysia. The platform currently supports over 20 languages with Vietnamese being added on to serve the local market.

“The launch of HSBC Supply Chain Finance on an e-platform testifies to our commitment to transform trade for our clients in Vietnam as well as the rest of Asia. This is the latest innovation we have rolled out to enhance customer experience and provide them with easy access to working capital,” said Ajay Sharma, head of Global Trade and Receivables Finance for Asia Pacific at HSBC.

Via the platform, buyers can easily uploads their approved invoices onto the system and suppliers can expected early payment innitiated by the buyers’ bank (HSBC in this case). A pre-maturity report will then be issued by HSBC to the buyers before the settlement day and buyers can then settle the approved invoice on the due date with the bank.

According to HSBC, the supply chain finance supports buyers by optimising payment terms negotiated and agreed with sellers, increasing liquidity and boosting payment efficiency, resulting in supply chain cost reduction. By injecting liquidity into the supply chain, they can extend supplier network and enhance strategic supplier relationships.

Furthermore, HSCF’s user-friendly interface allows buyers to upload unlimited number of invoices with a single click. It can also provide accurate forecasts on future cash flow by extracting and analysing data in various formats, supporting the business’s reporting process.

The suppliers that buyers choose to join HSCF will receive early payments based on buyers’ credit ratings, resulting in competitive capital cost benefit. With this programme, suppliers may effectively decrease Days Sales Outstanding (DSO) and enjoy additional increase working capital without leveraging bank credit lines.

It also minimises collection, cash management and insurance costs. They can also request early payment for invoices based on business cycle demand, from there optimising cash flow management. Payment risks from suppliers’ accounts receivables are minimised as suppliers receive early payments when joining the programme. Suppliers do not need to be HSBC’s customers or maintain accounts with HSBC.

HSCF platform is the next step in HSBC Vietnam’s trade digitalisation strategy. Since 2018, the bank has rolled out various solutions such as Trade Tracker (digital application to support customers in real-time tracking of trade transactions) and executed the first live pilot blockchain Letter-of-Credit transaction.