Next Generation Trade

Next Generation Trade

HSBC x HKTVmall Innovative Merchant Finance Programme

HSBC and HKTVmall jointly launch an innovative digital trade financing programme that leverages commercial data for credit assessment and loan drawdown, making loans more accessible for the growing community of online merchants in Hong Kong.

Under this programme, HSBC will evaluate loan applications based on HKTVmall’s diversified commercial data such as turnover, types of goods and sales performance trend information. Available to eligible HKTVmall merchants by phases, the programme will offer trade facility of up to USD500,000 with 90-day loan tenor without requiring further financial statement and provision of collateral.

What you can enjoy from this programme:

 

Preferential rates for different loan amounts

 

90-day loan tenor for each drawdown*

 

No financials or collaterals is required for facility size less than or equal to USD500K

 

Use of digital data to replace conventional trading documents

 

Financing service anytime with ease

Speak to us today

*The facility is subject to annual review

HSBC/Zeek - Turning challenges into opportunities with smart logistics

The adverse impact of the COVID-19 pandemic caused many brick-and-mortar retailers to transition their businesses online, fast tracking their digital transformations to capture new opportunities. Essential to this process is having a reliable logistics solution for database, order and distribution management. Yet for a lot of merchants in the process of adopting digital ways of doing business, logistics is a hindrance and a challenge, especially as the pandemic caused an overwhelming surge in demand for goods through online channels.

 

 

This is where Zeek, a Hong Kong-based smart logistics platform established in 2017, is offering a comprehensive logistics solution promising to remove the common barriers that online retailers face. KK Chiu, Zeek’s CEO, described how the company is building an online to offline (O2O) digital platform for merchants that includes smart order management and distribution services, aimed at increasing business leads and reducing operating costs for restaurants and retailers.

Delivering better deliveries

KK said that “In the past, restaurants relying on self-operated digital platforms mainly adopted two delivery models: one is to develop an in-house full-time delivery crew, and the other is to hire an external logistics company for bulk orders." Both approaches require a stable or guaranteed order volume, meaning that they become suboptimal in the face of unpredictable demand.

Zeek's smart logistics solutions solve this problem by allowing merchants to flexibly arrange deliveries according to their order volume. In addition, the company’s online order data management enables merchants to use the right delivery mode – be it walking, bicycling, or driving – to fully mobilise their capacity and maximise their coverage.

In addition to food delivery, Zeek also provides parcel delivery services for daily necessities such as groceries and fresh food to fully meet the diverse needs of local consumers.

Trade financing for safer finances

Asked about the impact of COVID-19 on Zeek’s business, KK stated that although the business has grown significantly, with monthly order volumes rising by as much as double the pre-pandemic levels, uncertainty remains as it usually takes almost two months to collect outstanding payments. To alleviate this pressure, HSBC Global Trade and Receivables Finance worked with Zeek in establishing open account terms, allowing the company to efficiently convert its receivables into capital to maintain sufficient operating funds.

KK explained that the payment collection period for logistics companies is usually longer than that of couriers. Because most customers adopt a monthly settlement arrangement, it can take one to two months for payments to arrive. In comparison, to ensure stable supply of couriers, companies will pay out courier wages once every one to two weeks. The difference creates a challenge for logistics companies, which is why being able to sell on open account terms is so important.

A financial partner for growth

Commenting on the company’s relationship with HSBC, KK said, “HSBC Global Trade and Receivables Finance has provided strong capital support for our company, enabling us to focus on business development amidst an uncertain market environment. They also provided us with a smooth payment collection experience even when most companies are implementing work-from-home arrangements.”

 

 

HSBC is committed to maintaining close communication with its customers, understanding that they require timely support to adapt to changes in the business environment. Aditya Gahlaut, Managing Director and Head of Global Trade and Receivables Finance, Hong Kong and Macau, HSBC stated, “HSBC is committed to supporting our customers with innovative solutions, including our award-winning service that allows Zeek to conduct paperless drawdowns on their receivables financing based on secure API data. We are eager to continue working with businesses of all sizes and across sectors to strengthen their operations, while giving them flexible liquidity to capture the opportunities emerging from the new economy.”

Reflecting this commitment to innovation, HSBC was awarded Best Supply Chain Solution (New Economy) in Hong Kong at The Asset Triple A Treasury, Trade, Sustainable Supply Chain and Risk Management Awards 2021 for the digital solution it developed for Zeek.

Looking forward, Zeek will continue to enhance its smart logistics solutions to meet the demand for integrated courier management options. Zeek’s solutions have been adopted by many renowned brands as well as many merchants just starting their digital transformations. KK and his team are eager to support the sustainable development of businesses and help digitally transform the industry landscape.

HSBC / Cainiao - innovative digital trade finance solution

HSBC has joined forces with Cainiao Network, Alibaba Group’s smart logistics platform, to offer an innovative digital trade finance solution for online merchants. The new scheme will use real-time logistics information for credit assessment, making loans more accessible and matching the fast-changing needs of new economy enterprises. TMall global merchants are benefited from the integration of Supply Chain Finance and Receivables Finance.

Watch the video and see how Cainiao and Hong Kong merchant on TMall Global think about this innovative trade finance programme.

You can download the factsheet to know more about this trade finance solution.

Contact us

+852 2748 8288

After language selection, press #, 4

Contact us

+852 2748 8288

After language selection, press #, 4

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