HSBC has joined forces with Cainiao Network Technology, Alibaba Group’s smart logistics platform, to offer a digital trade finance solution for online merchants using Cainiao’s real-time logistics information for credit assessment.
The scheme, available to Hong Kong merchants selling on the TMall Global e-marketplace, aims to make loans more accessible and to match the fast-changing needs of new economy enterprises.
With the borrower’s authorisation, HSBC will access Cainiao Network Supply Chain Finance’s integrated information about the merchant, including its business background, primary brands, Cainiao Network ratings, real-time inventory information and operation status, to conduct a credit assessment.
Merchants are not required to provide collateral or financial documents. The process can take as little as seven working days from account application to approval for loans of up to US$500,000.
“We see big data and other emerging technologies as a huge opportunity to offer innovative solutions that make financing easier for our customers,” says Jeanny Ip, HSBC’s head of global trade and receivables finance for Hong Kong and Macau. “There is a clear need to match the rapid evolution of the market with new solutions, and we believe the new scheme will provide adequate support to online merchants.”