DBS Bank India announced that it has partnered with ODeX, one of India's leading platforms to exchange shipping documents and facilitate payments, to introduce ODeX Pay Later Solutions powered by DBS.
ODeX customers can access comprehensive payment and financing solutions through the partnership for all their ocean shipping transaction needs. This partnership is expected to benefit over 8,500 freight forwarders, aligning with DBS's commitment to financing local businesses and supporting livelihoods.
Freight forwarders usually receive payments from their customers, comprising importers and exporters, after completing service. However, they must pay shipping lines, port terminals, container freight stations and other stakeholders upfront to clear the cargo on time, which impacts their working capital. DBS recognised this gap and designed a financing solution that is digital, contextual, seamless and removes friction from the overall payment process.
By broadening access to finance and streamlining current credit workflows of ODeX customers, the ODeX Pay Later Solutions allow freight forwarders to make direct payments to ship liners. Businesses with a turnover of Rs 3 crore to Rs 200 crore that have completed over five years in the same industry can avail of an unsecured loan of up to Rs 50 lakh from DBS Bank.
Further, they can opt for a secured credit limit of up to Rs 5 crore DBS was recognised among the 'Outstanding Financial Innovators in Asia Pacific' for this trade finance solution at the annual Innovators Awards 2021 by Global Finance.
Divyesh Dalal, Head - Global Transaction Services, DBS Bank India, said, "The integration with ODeX will help simplify the payment journey for freight forwarders, thereby increasing efficiencies."
