HSBC and Trade Ledger launch digital accounts receivable financing tool

On Thursday (Oct 11) London-based Lending-as-a-Service FinTech Trade Ledger announced the launch of HSBC’s new digital finance accounts receivable solution, built on the Trade Ledger platform.

In a press release, Trade Ledger said the technology would allow HSBC to reduce the average amount of time it takes to approve new Receivables Finance (RF) customers from more than a month to less than 48 hours.

Using the new online application, HSBC customers can now transfer data automatically through an application programming interface (API) from their accounting software suite or manually through the user interface.

The Digital RF solution automatically generates a risk survey and report using a rules-based decision engine that is then sent to subscribers within hours of receiving the request, according to the release.

In addition to helping to streamline the decision-making process, the new solution makes it easier for customers to track the status of their requests.

Commenting on the launch, Vinay Mendonca, HSBC’s Director of Growth, Global Trade and Receivables, said: “Digitizing our Receivables Financing approval process makes it simpler, faster and more secure to apply for capital from worked.

“The launch of Digital RF eliminates time- and labor-intensive manual processes for our customers. In addition, they can find out if their application is likely to be successful in a matter of hours instead of months and gain quick access to liquidity.”

The latest announcement comes on the back of a broader digitization within HSBC’s Trade Finance business. Last week the bank launched HSBC Trade Solutions (HTS), its new digital technology stack which it says will “form the backbone of HSBC’s market-leading trade offering”.

Read more: HSBC launches digital platform for trade finance

While HTS has only launched in the UK and Hong Kong so far, digital RF applications are now available in eight countries and territories, including the UK, Hong Kong, the US and India. Trade Ledger stated that the proposal would go live in three other countries by the end of the year.

Commenting on the launch, Martin McCann, CEO of Trade Ledger, said: “Our partnership with the world’s largest commercial bank has been very productive. The platform has enabled HSBC to offer its clients quick and easy access to working capital.

Digital Receivables Finance is the result of a significant team effort to use enterprise-grade technology to drive customer convenience and address the financing gap for businesses around the world.”

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