Innovative thinking: HSBC TradePay simplifies supplier payments

Cotton Growers Services (“CGS”) was established in 1979 to service the specialist crop protection and stewardship needs of Australian cotton growers. A joint venture between Bayer Crop Science and Syngenta – both global leaders in agriculture – CGS has a track record of delivering innovative products and technologies and continues to grow its presence providing specialty agricultural products and services to farmers across Australia.

With their business strongly subject to the extreme and unpredictable Australian weather cycles, managing working capital is critical for CGS. So, too, is the ability to efficiently manage finances across multiple markets and build a resilient global supply chain. Therefore, when it came to choosing their banking partner, HSBC was a clear choice due to our extensive international network and innovative product suite.

Digitalisation leads to optimisation

Across Asia Pacific, HSBC research found that 76% of businesses anticipate increasing digitisation across their supply chains.¹ This expectation reflects growing awareness of the importance of technology in both providing growth opportunities and enhancing resilience.

Banking partners support the digitalisation of trade and supply chains because they recognise the value of data as a risk mitigation tool. As companies digitalise their supply chains, they create a wealth of valuable data that can be used to improve access to trade finance, inform decision-making, optimise cash management and identify opportunities for further efficiency gains. A digital trade finance solution can enable instant access to working capital, using production or transaction data to automate other transactions.

HSBC provides businesses with access to trade finance and digital banking solutions to help reduce frictions and streamline treasury operations across international supply chain networks.

HSBC TradePay, an industry-first digital trade finance offering, brings just-in-time financing to supply chains with loan processing speeds of under a minute.² The document-free solution allows companies to control the timing of their trade payables by drawing down on trade loans with only the need to upload a digital payment file. The system helps coordinate supply chain relationships by paying suppliers directly and automatically sending notifications to all parties to keep everyone informed and coordinated on production and cashflow.

Tailored solutions for maximum efficiency

HSBC listened to the CGS’s requirements and delivered a bespoke solution which combined both a revolving credit facility with a sublimit for HSBC TradePay to manage their supplier payments, establishing the first TradePay facility in the Australian market.

With HSBC’s support, CGS has been able to pay suppliers and drawdown a trade loan by simply sending a payment file through HSBCnet, making the entire process more efficient and cost effective.

Why HSBC?

A resilient supply chain is crucial for fostering and maintaining a growing business. What’s more, efforts by companies, like CGS, to enhance resilience are also helping to uncover further growth opportunities. With 160 years in business, and 60 years on the ground in Australia, HSBC is uniquely positioned to support clients through an extensive network across the globe, advising on local market dynamics and supply chains, while also bringing international connectivity.

To learn more about HSBC Global Trade Solutions, click here or contact us directly to find out how we can help you optimise your working capital