The Hong Kong division of the banking giant HSBC has announced the launch of a B2B transaction financing tool.
Through the new solution, this financial institution provides B2B sellers with the opportunity to offer customers extended payment terms on virtual platforms.
Aditya Galaut, Managing Director of HSBC and co-head of Global Trade and Receivables Financing in the Asia-Pacific region says that over the past few years, a trend of rapid transition to the purchase and sale of goods and services in the digital space has formed, and moved to the stage of active dissemination.
Galaut also stated that the bank’s new embedded solution designed to finance retail outlets allows customers to increase sales on online platforms and at the same time maintain the most effective control over cash flows.
The new transaction finance tool uses application programming interfaces (APIs) to create a payment option on the checkout page. HSBC will transfer the money to its commercial customers within one business day. This will happen immediately after the consumers of the services receive a purchase order.
Galaut stated that customers have high expectations regarding the ability to make purchases in the shortest possible time. He also noted that the API-enabled solution will provide consumers with new sales opportunities. In this case, an additional payment method will appear. Another innovation will be almost instant funding.
HSBC is launching a new tool amid efforts by many lenders and platforms to introduce products focused on trade finance and working capital. The purpose of these efforts is to help small and medium-sized businesses, which often face difficulties when trying to obtain financing.
For example, in January Santander announced a Buy Now, Pay Later (BNPL) B2B product designed for multinational corporations. This solution allows to offer business customers a consumer version of the BNPL with almost instant approval.
Special studies show that in the United States, more than 70% of small and medium-sized enterprises do not have access to financing equivalent to income. This situation has significantly worsened after the turmoil in the regional banking sector. Lenders began to exercise maximum caution when interacting with business representatives on the issue of providing capital.
As we have reported earlier, HSBC Announces Increase in Profits from Purchase of Silicon Valley Bank’s UK Business.