The partnership gives the hospitality group’s SME suppliers quick and seamless access to capital, and enables them to be more sustainable
[SINGAPORE] OCBC and Marriott International have formed a strategic partnership that will enable the hospitality group’s small and medium-sized enterprise (SME) suppliers in Singapore, Malaysia and Indonesia to enjoy same-day invoice financing.
Suppliers that work with Marriott via its procurement platform will gain access to digital invoice financing, with the bank giving same-day approval of up to 80 per cent of the invoice amount.
They do not need to submit bank statements or financial reports, as OCBC will assess their credit quality based on the transaction data from the invoices on Marriott’s procurement platform.
OCBC and Marriott said in a joint media release that the loan disbursement and settlement will be automated, and the ability to access funds quickly will help these SMEs optimise their cash flow in a “seamless and hassle-free” manner.
As part of the partnership, OCBC will also equip suppliers with tools to establish a baseline measurement of their sustainability performance, as well as resources such as targeted training and workshops to strengthen their sustainability capabilities.
These SMEs can access sustainability-linked loans from OCBC, where the cost of borrowing is tied to their ability to improve their baseline sustainability measurement over time.
Ergo SG, an IT services and custom software development company, is among the many SMEs that have accessed financing from OCBC and obtained a baseline measurement of their sustainability performance.
The company’s director Keith Lim said: “In the IT business, project timelines can run long, which creates pressure on cash flow. Through the programme offered by OCBC and Marriott, we were able to have quicker access to working capital to manage our operations smoothly. Beyond that, the programme has helped us kickstart our journey towards ESG (environmental, social, and governance) readiness and align our practices with international ESG standards.”
KH Chew, the director of food catering business Nosh Cuisine, said that running such a company means cash cycles can be unpredictable, especially when demand spikes.
“With the financing support offered by OCBC, we are able to manage working capital more smoothly and flexibly without compromising on quality or freshness. The ESG rating accorded to us has also helped us strengthen our sustainability practices,” he said.
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