HSBC launches Supply Chain Finance platform in Sri Lanka

HSBC last week launched its Supply Chain Finance (HSCF) platform – the first of its kind in Sri Lanka.

The launch event focused on the modernisation and disruption of the supply chain in the wake of digital

Ajay Sharma, Regional Head of Trade and Receivable Finance HSBC Asia Pacific

Mark Prothero, CEO HSBC  Sri Lanka and Maldives

disruption and the ever-increasing interest in sustainability. The event also featured a panel discussion on the evolution of supply chain which saw the participation of HSBC Asia Pacific Head of Global Trade and Receivables Finance Ajay Sharma, Serai CEO Vivek Ramachandran, MAS Group Sustainability Director Sharika Senanayake, Hayleys Advantis Managing Director Ruwan Waidyaratne and Supply Chain and Materials Management Specialist Gayani De Alwis. 

Delivering the keynote speech at the launch, Sharma said, “The launch of HSBC Supply Chain Finance on an e-platform testifies to our commitment to transform trade for our clients in Sri Lanka 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. As a world-leading trade bank, we have both the opportunity and the responsibility to help reduce trade friction, make trade more accessible, and further drive growth in the exchange of goods and services.”  HSBC Sri Lanka and Maldives CEO Mark Prothero, who welcomed the corporate clients of HSBC to the event, said, “Today we are the largest international trade bank in the world, with an unrivalled global presence and access to over 90% of the world’s global capital flows. Trade is very much in the DNA of HSBC. Here in Sri Lanka we are the largest international with a significant market share in trade finance. We are investing in Sri Lanka as part of our global strategy and transforming trade finance by digitising and redesigning our client journeys to meet your evolving needs driven by the digital disruption and changing global trade flows.” 

HSBC Supply Chain Finance (HSCF) is a web-based interface that ensures buyers’ efficient, swift, convenient and secure payment to their suppliers. The platform currently supports over 20 languages such as English, French, Japanese, Chinese, Italian and German. Upon receiving goods and commercial documents (invoices) from suppliers, buyers easily upload the invoice files onto HSCF platform, then approve those invoices in the system. Subsequently, the buyers’ bank (HSBC) will effect early payments to suppliers. The supply chain finance helps optimise working capital, reduce supply chain costs and enhance the buyer/supplier relationship. The e-solution will help save time, enhance transparency, reduce manual errors and provide quick and timely updates for all parties. 

For buyers, the supply chain finance supports them in 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 the supplier network and enhance strategic supplier relationships. Furthermore, HSCF’s user-friendly interface allows buyers to upload a multitude 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 with will receive early payments based on buyers’ credit ratings, resulting in competitive capital cost benefit. With this program, 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. Through HSCF, they can request early payment for invoices based on business cycle demand, optimising cash flow management from there onwards. Payment risks from suppliers’ accounts receivables are minimised as suppliers receive early payments when joining the program. Suppliers do not need to be HSBC’s customers or maintain accounts with HSBC.  Suppliers and buyers will receive the continuous and professional technical and transactional support from HSBC’s dedicated client service team.

This is the first supply chain finance on web-based platform launched by HSBC in Sri Lanka, following its successful implementation in France, Canada, Australia, the United Arab Emirates, Singapore, Thailand, South Korea, Malaysia, Bangladesh and Vietnam.