DBS Bank India announced that it has partnered with ODeX, one of India’s leading platforms to exchange shipping documents and facilitate payments, to introduce ODeX Pay Later Solutions powered by DBS. ODeX customers can access comprehensive payment and financing solutions through the partnership for all their ocean shipping transaction needs. This collaboration is expected to benefit over 8,500 freight forwarders, aligning with DBS’s commitment to financing local businesses and supporting livelihoods.
Freight forwarders usually receive payments from their customers, comprising importers and exporters, after completing service. However, they must pay shipping lines, port terminals, container freight stations and other stakeholders upfront to clear the cargo on time, which impacts their working capital. DBS recognised this gap and designed a financing solution that is digital, contextual, seamless and removes friction from the overall payment process. By broadening access to finance and streamlining current credit workflows of ODeX customers, the ODeX Pay Later Solutions allow freight forwarders to make direct payments to ship liners. Businesses with a turnover of INR 3 Cr to INR 200 Cr that have completed over five years in the same industry can avail of an unsecured loan of up to INR 50 lacs from DBS Bank. Further, they can opt for a secured credit limit of up to INR 5 Cr. DBS was recognised among the ‘Outstanding Financial Innovators in Asia Pacific’ for this trade finance solution at the annual Innovators Awards 2021 by Global Finance.
Divyesh Dalal, Head – Global Transaction Services, DBS Bank India, said, “At DBS, we are pre-emptive in recognising customer needs, and we leverage our best-in-class technology to deliver innovative financing solutions. The integration with ODeX will help simplify the payment journey for freight forwarders, thereby increasing efficiencies. Our analytics-based platform reduces friction and improves the turn-around time for disbursing credit. It allows for a seamless transaction flow wherein customers can raise requests from ODeX through API enabling real-time flow of information between the platforms.”
Sudarshan Chari, Head – Business Banking, DBS Bank India, said, “DBS has been at the forefront of supporting local businesses and broadening credit access to this segment. Our partnership with ODeX allows us to leverage our strong digital capabilities and offer innovative financing solutions to SMEs in the shipping industry. ODeX Pay Later Solutions will help unlock cash flow that will, in turn, allow these enterprises to scale and tap into emerging opportunities.”
Commenting on the partnership, Liji Nowal, Managing Director, ODeX, said, “This partnership is a clear and concentrated focus on serving a market that is currently underserved. The technology support from DBS will help us multiply our reach in the logistics industry, allowing us to present a complete solution suite to the customers.”
Customers can log in via ODeX and make payments to ship liners by getting access to finance within the platform. A Pay Later purchase invoice discounting option will be available at the checkout point on the platform, thereby helping them unlock extra funds for releasing goods on time without detention charges. The end-to-end process for onboarding is digital, and the approval time for the credit line is ~3 days. Once approved, the customer can dip into their credit line as per their requirement. They can even avail an option to increase their credit by opting for a secured loan. The platform integration offers added convenience. The customer does not have to provide invoices for financing separately. The bank receives data from ODeX directly to make the process quick and seamless.
The ODeX Pay Later Solutions powered by DBS is available to customers that have been associated with ODeX for a minimum of one year and are located near a DBS Bank India SME asset branch in Mumbai, Surat, Vadodara, Ahmedabad, Chennai, Kolkata or Delhi-NCR. DBS Bank India leverages its analytics-based lending platform to digitally onboard ODeX customers.
Such customers can also avail themselves of all the DBS SME Banking solutions with the DBS Edge-preferred current account. They will also get access to key solutions, including DBS Digital Business Loans- the segment-flagship online credit solutions platform by DBS offering collateral-backed credit up to INR 20 Cr for the entire spectrum of micro, small and medium-sized enterprises, paperless A2 online trade transactions, an online forex booking platform, easy remittance with DBS Priority Pay, Swift GPI tracking, and much more. Customers can enjoy the bank’s customised offerings, complemented by the online banking platform – DBS IDEAL, for regular banking transactions and trade requirements.