DBS Bank India has concluded a strategic partnership with Priority Vendor, a leading online dynamic discounting platform, to enable suppliers achieve their short-term working capital requirements. Priority Vendor provides working capital solutions to corporates and their suppliers of raw material, packing material, transportation and other services to unlock value out of the existing supply chain. The unique invoice discounting proposition allows suppliers to manage their cash flow by unlocking the capital that is tied up in invoices by leveraging on the higher financial standing of the buyer, without the need to provide any collateral security or personal guarantee. It provides flexibility to the suppliers to opt for early payments to manage their working capital by forging a portion of the invoiced amount, and in return receive earlier payment, totally at the discretion of the supplier. This will also significantly reduce the requirements of small suppliers for traditional bank finance as their receivables will be converted in to cash almost on immediate basis. While the program is essentially meant to meet the needs of MSME suppliers, it is not restricted to MSMEs.
