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Large anchors step up to support the supply chain
Being able to receive cash on time, especially for SME suppliers or distributors, is critical in both normal and abnormal times such as where we are today
2 Jun 2020 | The Asset

WHETHER you are a supplier or distributor, getting the cash on time matters, especially if you are an SME (small and medium size enterprise). This is doubly important during this time of Covid-19, and why an increasing number of anchors see the value of providing a financing solution to ensure the sustainability of the supply chain.

The Asset Triple A Treasury, Trade, SSC, and Risk Awards 2020 this time showcases the supply chain solutions that stood out during the awards period. The board of editors were especially pleased to see anchor corporates in Asia step up to take care of their upstream suppliers and downstream distributors.

In Asia, Panasonic partnered with MUFG to extend an alternative source of funding to the company's suppliers. The bank advanced the net proceed amount of the invoices to the supplier's account at a discount rate. Standard Chartered Hong Kong worked with Inspur Electronic Information to offer a vendor prepay solution under a digitized financing platform, which allowed the company to have stronger relationships with their suppliers.

Distributor finance solutions are also becoming prevalent. VST ECS Thailand utilized UOB’s account receivable purchase programme without recourse for the company's top tier buyers. IndusInd Bank offered a distributor/channel financing programme to Paragon Polymer Products in India and helped mitigate risks for SMEs relying on unsecured lending.

In addition, as MNCs and global banks actively explore opportunities in supply chain finance, new ideas and innovations have also been introduced to the market. Lenovo completed its supply chain finance securitization programme with BNP Paribas to enhance its global working capital covering both receivables and payables.

More of the best solutions from the more than 300 submitted for The Asset Triple A Treasury, Trade, SSC, and Risk Awards 2020 will be featured in the coming weeks.

To see the Best supply chain solutions, please click here.

For more details about the awards, please click here.

For more information about receiving the awards, please contact events@theasset.com

To revisit some of our previous stories on the solution trends shaping treasury departments in Asia please read more below:

ESG underpins the best treasury solutions

Digitalization gains momentum

Digital adoption by SMEs accelerates

New economy companies focus on efficiency

From AI to L/C, trade finance goes digital

To survive Covid-19, here is what you need to do

Automating to accelerate payments and collections

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