Other Trade Products

Supply Chain Financing

Free up valuable working capital trapped in your supply chain

Free up valuable cash trapped in the supply chain with DBS’ Supply-Chain Financing (SCF). We offer both Supplier and Buyer Financing Programs, working closely with you, and a Program Anchor to determine the needs of your upstream suppliers or downstream buyers. Your tailored SCF solution helps you extract value from your supply chain relationships and improve your working capital.

 

Why choose DBS Supply-Chain Financing?

  • Relieve credit constraints by leveraging DBS’s balance sheet when paying vendors and dealers
  • Improve your balance sheet and rest safe in the knowledge that DBS will pay for shipments under your SCF program quickly
  • Place your trust in an "AA-" and "Aa1" rated bank. In 2012, DBS was named the Safest Bank in Asia by Global Finance for the 5th consecutive year
  • Fund invoices promptly on their due date and remove concerns about unpaid receivables with our SCF services
  • Reduce time and money spent collecting payments from channel partners
  • Better manage your channel partners. We advise you when vendors and dealers are late or delinquent in their payments so you can make informed decisions when reviewing agreements
  • Improve working capital and cash flow for your dealers. SCF lengthens their days payables outstanding (DPO) and builds loyalty
  • Increase sales and reduce costs by paying your suppliers upfront. SCF also helps you reduce heavy reliance on documentary trade

FAQS

Who is eligible for SCF?

SCF is open to companies across all industries.

Is SCF secured?

SCF is offered both on a secured and unsecured basis, however secured is more common. Recourse may be place on either the dealer or the anchor as below:

  • Corporate / Anchor: First Loss Default Guarantee is a minimum 5% of limits
  • Individual Dealers:
    • Collateral (governed by leverage ratio) – Maximum leverage up to eight times
    • Personal guarantee of all promoters/directors is compulsory
    • Maximum 25% of total portfolio can be unsecured
What type of collateral is required from the dealer?

We typically require collateral such as commercial or residential property or fixed deposits under lien with the bank.

Would there be a hypothecation on assets financed to the dealer?

Yes, the documentation entered into with the dealer contains the relevant clauses enabling hypothecation of assets.

 Dealers are recommended by the anchor, however the bank’s final decision is made based on the company’s financials and collateral. The following criteria apply:

  • Minimum two-year relationship with the anchor
  • Minimum 40% dependency on the anchor
  • Strong track record of paying in less than 60 days
  • Positive cash profit for the last two financial years
  • Positive net worth at the end of the last financial year

Any deviation from the criteria mentioned above is subject to approval and will be examined on a case-by-case basis.

How regularly are stock audits conducted?

Stock audits for individual dealers are conducted each month for auto dealers and quarterly for all other dealers.

Does the dealer’s existing bank need to provide a No Objection Certificate?

We will send a letter advising the dealer’s bank of the arrangement. If no response is received within fifteen days, we will assume the bank has no objection.

Awards

Awards we have won recently
Best Arranger of Loans in Asia Pacific

Best Arranger of Loans in Asia Pacific

2012
Best Arranger of Loans in South and Southeast Asia

Best Arranger of Loans in South and Southeast Asia

2012
Best Loan Syndication - Reliance Industries US$1.5 billion dual tranche syndicat

Best Loan Syndication - Reliance Industries US$1.5 billion dual tranche syndicat

2013
Best Structured Trade Finance Solution: Sterling & Wilson Co-Gen Solutions 2013

Best Structured Trade Finance Solution: Sterling & Wilson Co-Gen Solutions 2013

2013
Best Trade Finance Bank – Treasury, Trade & Risk Management Awards 2013

Best Trade Finance Bank – Treasury, Trade & Risk Management Awards 2013

2013
Best Trade Finance Solution (Highly Commended) 2012

Best Trade Finance Solution (Highly Commended) 2012

2012
Best Trade Finance Solution 2013

Best Trade Finance Solution 2013

2013
Rising Star Transaction Bank 2013

Rising Star Transaction Bank 2013

2013
View All

 

How do I apply?

Please visit any of our Branches or contact your Relationship Manager to apply.

Get In Touch

DBS BusinessCare: 1800 419 9500

Get In Touch

DBS BusinessCare: 1800 419 9500