HSBC, Nestlé sign supply chain solution agreement

The Hongkong and Shanghai Banking Corporation Limited and Nestlé in Bangladesh signed an agreement to offer "Buyer Approved Invoice Finance" (BAIF) for Nestlé's suppliers.

This is a new supply chain financing proposition that provides more efficient and cost-effective working capital solution for buyers and their suppliers, said a statement.

This innovative proposition, a first by HSBC in Bangladesh, provides suppliers with access to more competitive financing. This solution also enhances visibility across the entire supply chain, which simplifies the management of trade payables and, in turn, helps to improve supply chain efficiency and agility.

HSBC Bangladesh was mandated to operate the supplier financing program for Nestlé Bangladesh Limited (Nestlé). Stéphane Nordé, Managing Director, Nestlé Bangladesh and Francois de Maricourt, Chief Executive Officer, HSBC Bangladesh signed an agreement on behalf of their respective organisations. Muhammad Shohiduzzaman, Country Head of Global Trade and Receivables Finance, HSBC Bangladesh, Tahsina Banu, Country Head of International, Commercial Banking, HSBC Bangladesh, Sandeep Sethi, Finance & Control Director Nestlé, Sanjeev Kumar Yadav, Supply Chain Director Nestlé, Naquib Khan, Corporate Affairs Director Nestlé, Debabrata Roy Chowdhury, Legal & Tax Director and Company Secretary Nestlé along with other officials from Nestlé and HSBC attended the agreement signing ceremony.

Commenting on the product solution, Francois de Maricourt of HSBC said, "With the advent of technology and globalisation, we have seen a sharp compression in trade processes and payments cycles. It's a persistent tug of war, with buyers pushing for longer payment schedules just as suppliers are pressing for faster payment turnarounds to support their procurement needs. Our BAIF solution has been designed specifically to meet the needs of both parties, enabling buyers to increase their arsenal for payment terms negotiation while also protecting the financial stability of their supply chain."