Today, HSBC unveiled a pioneering banking solution in Hong Kong, introducing point-of-sale financing for business-to-business (B2B) transactions. This offering will empower B2B sellers on online platforms to provide extended payment terms to their business and institutional customers.

Using APIs, a financing option will be created at the check-out page of HSBC clients’ B2B eCommerce platforms. HSBC will pay its commercial clients in one business day after they receive a purchase order. 

This solution will enhance efficiency and convenience for the sellers, who can reconcile their sales in a timely manner and optimise their working capital.

From early June 2023, the solution will be available on FreightAmigo, a digital freight logistics platform, to enable its business users to ship now, pay later. When a company places a shipment booking on FreightAmigo, they can opt to pay on extended terms at no extra cost.

This innovative form of receivables finance helps FreightAmigo uplift the digital customer experience and seek new clientele by providing greater payment flexibility.

Aditya Gahlaut, Managing Director, Co-Head of Global Trade and Receivables Finance, Asia Pacific, HSBC, said, “The last few years mark an accelerated shift to online buying and selling of goods and services. Our brand new embedded point-of-sale financing solution will support our clients to maximise sales on their online platforms while maintaining better control over their cashflow. 

As people have higher expectations of having near-instant purchase experience, this API-enabled solution will unlock new sales opportunities for our clients by offering an additional payment option and almost immediately available finance to improve acceptance of their customers.”

Christina Ong, Managing Director, Head of Business Banking, Commercial Banking, Hong Kong, HSBC, said, “The flourishing of online marketplaces enables small and medium enterprises focusing on B2B sales to widen their customer base more directly and cost-effectively. The new point-of-sale financing, offering greater payment flexibility and control over cash flow, will be a win-win solution for buyers and sellers in B2B transactions.”

HSBC is closely collaborating with different sectors to transform transaction banking and financing for its clients against the backdrop of a surge in eCommerce globally. 

A digital merchant finance programme was launched in partnership with HKTVmall to leverage commercial data for credit assessment, making digital trade finance more accessible for e-commerce merchants.