DBS Bank India has announced its partnership with Receivables Exchange of India (RXIL), the first RBI-licensed exchange platform under the Trade Receivables electronic Discounting System (TReDS). While the bank already offers post-shipment financing on the TReDS platform, it is now launching a pre-shipment financing solution that will empower Indian SMEs with an additional way of availing trade finance in a credit-light manner. By using alternative trade lending data from RXIL to build better borrower profiles, the bank will be able to support the supplier's entire trade cycle, from sourcing raw materials to delivering the end product to the customer. This offering will be particularly relevant for MSMEs and SMEs across India, enabling them to enhance cash flows to fulfill orders even before goods are delivered to buyers. MSMEs contributed 45.56% of total exports from April-September ?23 as per the Ministry of External Affairs report[1]. Despite their sizeable share in trade flows, MSMEs often face challenges establishing favourable payment and credit terms with buyers, managing outflows, and obtaining the documentation required by formal lenders. With the new DBS solution, MSMEs on TReDS will now be empowered through a transparent, simplified process to secure funding against purchase orders from buyers, thereby streamlining cash flows. Divyesh Dalal, Managing Director & Head ? Global Transaction Services, SME & Institutional Liability Business, DBS Bank India, said, ?The collaboration with RXIL underscores our commitment to supporting the MSME sector and broadening their access to finance. The structure enables us to significantly reduce the time required for credit decisioning and linked documentation, which will greatly benefit time-strapped business owners. DBS Bank India will be the first bank to partner with RXIL to offer end-to-end supplier financing by harnessing platform data to perform credit assessment and sanction limits. The partnership leverages our digital capabilities to facilitate working capital financing for MSME suppliers by helping them unlock value in their operating flows.? Ketan Gaikwad, Managing Director & CEO of RXIL, said, RXIL is at the forefront of driving change in the landscape of trade finance. This collaboration holds immense potential in revolutionising pre-shipment financing for MSMEs through a trusted partner like DBS Bank India. Our shared vision entails leveraging a data-driven approach to assist MSMEs in streamlining operations, enhancing liquidity, and facilitating their trade journey as they expand their business. Additionally, this collaboration promises to alleviate the working capital challenges faced by MSMEs, offering tailored solutions to enhance their financial stability and propel their growth trajectory. By leveraging innovative financing mechanisms, we aim to empower MSMEs with the resources they need to thrive in today's dynamic trade landscape.