Infor Nexus Supply Chain Network and DBS Bank reported on collaboration to create a pre-shipment financing solution for small and medium-sized businesses in India.
In this case, a new service is meant for those Indian businesses whose activities are carried out with varying degrees of interaction with the Infor Nexus supply chain. The new solution provides for the use of data from the platform of the mentioned company for approval or refusal to provide credit funds. In this case, financing is implied, with the help of which suppliers can meet their working capital needs.
The new offer differs from existing solutions of a similar nature in that it allows suppliers to use expanded cash flows within the framework of order fulfillment even before the delivery of products to customers.
Gary Schneider, vice president of financial services at Infor Nexus, says that the new mechanism for providing credit funds is a concrete example of the significant transformational impact of data on supply chain financing. According to him, this solution makes it possible to increase the level of supply efficiency and cash flow.
A financial institution within the framework of cooperation will use alternative information about the supply chain from the partner’s platform. In this case, it means historical data and data on the physical movement of goods in real-time.
The new solution applies to small and medium-sized businesses that operate in the clothing, footwear, and textile industries.
Within the Infor Nexus ecosystem, the financial institution will support applications from potential suppliers of small and medium-sized businesses for trade financing. Based on the data, the lender will assess the level of risk in each case and determine the degree of creditworthiness of applicants.
Suppliers who receive financing for deferred orders before invoices are confirmed will have the opportunity to reduce the cash flow needs that traditionally arise in the period between shipment, delivery, and receipt of payment.
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