DBS Bank India launches pre-shipment financing solution on TReDS
DBS Bank India has announced its partnership with Receivables Exchange of India Limited (RXIL), the first RBI-licensed exchange platform under the Trade Receivables electronic Discounting System (TReDS). While the bank already offers post-shipment financing on the TReDS platform, it is now launching a pre-shipment financing solution that will empower Indian SMEs with an additional way of availing trade finance in a credit-light manner. By using alternative trade lending data from RXIL to build better borrower profiles, the bank will be able to support the supplier’s entire trade cycle, from sourcing raw materials to delivering the end product to the customer. This offering will be particularly relevant for MSMEs and SMEs across India, enabling them to enhance cash flows to fulfil orders even before goods are delivered to buyers.
MSMEs contribute nearly half of India’s total exports, as per official data. Despite their sizeable share in trade flows, MSMEs often face challenges establishing favourable payment and credit terms with buyers, managing outflows, and obtaining the documentation required by formal lenders. With the new DBS solution, MSMEs on TReDS will now be empowered through a transparent, simplified process to secure funding against purchase orders from buyers, thereby streamlining cash flows, said a release.
source: Exim News Service: Mumbai, July 1