HSBC upgrades digital receivables finance capability

“Digitising our Receivables Finance approval process makes it simpler, faster, and more secure to apply for working capital,” Vinay Mendonca, chief growth officer at HSBC.

HSBC has cut the approval process for new receivables finance customers from one to two months to under 48 hours, using a new technology platform. 

The new online application process, co-created with Trade Ledger, allows customers to transfer data directly through an API from their accounting software package with a few clicks.  

The client should receive a final decision within two days, including an indicative offer, HSBC said. 

Digitising the receivables finance approval process makes it “simpler, faster, and more secure to apply for working capital”, said Vinay Mendonca, chief growth officer at HSBC. 

The digital receivables finance application process is now available in eight countries and territories, including the UK, Hong Kong, the US and India. The proposition will go live in a further three countries by the end of the year. 

Martin McCann, chief executive officer of Trade Ledger, said: “The platform has enabled HSBC to offer its customers fast, easy access to working capital.” 

Trade Ledger was founded in 2016 to help the financial services sector deal with business finance for SMEs and mid-market corporates in the digital economy.  

“The last three years have seen an unprecedented shift to digital—88% of trade finance transactions are now originated online,” said Mendonca. 

Trade Ledger say its platform boosts client’s profitability, realising on average a 60% origination cost reduction, a 50% reduction in dropouts and loan book growth potential of over 100% through embedded finance. 

The lending-as-a-service fintech is backed by venture capitalists Point72 Ventures, Foundation Capital and Hambro Perks. To date, it has raised £16.6 million.  

 Image source: HSBC 

Josh Poyser Josh Poyser is an editor at FinTech Intel. He has written about fintech for several years and appeared at FinTech Connect 2023 on the 'Unlocking Success: The Art of Fintech PR' panel.