Image credit: PYMNTS.com
KUALA LUMPUR, July 17 — HSBC Malaysia and Proton Holdings Bhd (Proton) are collaborating to provide support to Proton’s suppliers, mainly local small to medium enterprises (SME) via the HSBC Supply Chain Finance (SCF) programme.
In a statement, HSBC Malaysia said the fully digitalised SCF programme would allow Proton’s suppliers to obtain early payment of the proceeds from their sales to Proton.
“This not only helps suppliers accelerate cash flow, but also provides them with access to working capital at a cost typically lower than their traditional source of financing by leveraging on Proton’s stronger credit profile,” said the banking and financial investment services institution.
It said Proton would be able to access and upload invoices and authorise payments via the SCF platform, as HSBC had put together a simplified supplier onboarding to extend support to more suppliers within a short period of time.
“This will result in increased sustainability and lowered cost along the supply chain,” it said.
HSBC said the SCF arrangement began during the Movement Control Order (MCO) period with multiple virtual briefings and online training sessions organised for Proton and its suppliers.
“Our business model allows us to support a broad spectrum of customers from SMEs, to corporates and multinational corporations during these challenging times,” said HSBC Malaysia chief executive officer (CEO) Stuart Milne.
Meanwhile, Proton deputy CEO Datuk Radzaif Mohamed viewed the initiative as one example on how the national automotive company could assist the vendor ecosystem.
“By leveraging our strength, we allow vendors access to more liquidity so they can continue to have good cashflow and focus on their core business,” he said.
Source: https://www.malaymail.com/news/money/2020/07/17/hsbc-malaysia-proton-partners-to-facilitate-cashflow-working-capital-for-sm/1885460