Lending solutions leverage on emerging technologies to simplify the lending process and to increase the accessibility of lending services. Lending solution encompasses functions like credit scoring, AI deployment, alternative lending solutions and intuitive mobile solutions for lending. This solution serves as a solution to smoothen the trade financing processes. Suppliers often have to wait for months before receiving payments on their invoice, tightening their cashflow, on the other hand, buyers sitting on excess cash receive negligible returns. This solutions serves as a platform for suppliers to offer discounts for early repayment and for buyers to offer early repayment for discounts. The platform reduces double financing and creates trust and communication between buyers and suppliers. This creates an efficient trade financing platform that maximizes profits, savings and working capital cycle speed for all parties in the ecosystem. Find out more at www.ey.com/sg/fintechhub. For enquiries, contact us via email at fintech@sg.ey.com.

1. Benefits as a supplier
Trade financing solution in a box
Case study
Context:
Suppliers often have to wait several months
before receiving payments on their invoices
and may experience tight cash flow. To ease
cash flow pressures, suppliers can seek
financing, but are often challenged by high
borrowing rates, limited credit lines, and
lengthy documentations and processes. On the
other hand, buyers who are sitting on excess
cash often earn negligible returns on this cash.
This company understood the underlying issue
and the gap in the trade finance industry,
which led them to introduce a B2B enterprise
trade solution to resolve this issue.
Recommended configuration:
• When a supplier has outstanding
receivables, he can advance cash flow by
offering discounts to these buyers.
• This works well especially for wholesale
trades that sell to a large network of
downline distributors, resellers and end
buyers.
• With this solution, buyers can earn better
returns on this cash by offering to pay
suppliers earlier, in return for a target
discount yield.
Client impact:
• Seller and buyer in the trade finance
ecosystem creating their own trust system
• Achieved a win-win outcome; lead buyer
earning higher margin and suppliers
supported by an early payment system
• Eliminated buyer’s concern on seller’s
performance
• Eliminated seller’s concern on buyer’s
repayment risk
Contact us
Varun Mittal
EY Global Emerging Markets FinTech
Leader
varun.mittal@sg.ey.com
Trade financing challenges faced by institutions
Double financing due to information
asymmetry
Difficult to validate transactions,
providing an avenue for money
laundering
Trust and communication issues
due to a lack of system integration
Scalability issues since system
integration is mostly centralized
Low visibility as inputs are localized
in companies’ internal databases
Unnecessary and duplicate
procedures
B2B enterprise trade solution
A digital platform to facilitate trade
and working capital efficiencies

X

X
Your suppliers
Lead buyer raises
GoJED campaign to
offer early payment
to their suppliers in
return for a
discount
Your buyers
Lead supplier raises
GoJED campaign to
request early
payment from their
buyers
Lead
buyer
Lead
supplier
JED’s partner lenders
connect to lenders for
expanded working capital
options
Benefits as a buyer
Savings Profit margin
Earnings before interest,
taxes, depreciation and
amortization (EBITDA)
Relationship with supplier
Cost to supplier Working capital cycle
Days sales outstanding Relationship with buyer Website: www.ey.com/sg/fintechhub
Email: fintech@sg.ey.com
Sahil Gupta
EY ASEAN FinTech Manager
sahil.gupta@sg.ey.com

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