Working Capital

Accounts Receivable Purchase

Unlock cash from your receivables

Improve your cash flow by monetising your receivables and protect your company against buyer credit risk with DBS Accounts Receivable Purchase (ARP). Simply submit your invoices and credit notes to us, and we’ll give you access up to 80% of the value. You could also be guaranteed up to 100% credit protection against buyer default in the event of insolvency and/or if the buyer is unable to pay after a predetermined period of time following the invoice due date. You may even save on time spent collecting payments from your buyers because we’ll pick up the collection duties and provide the necessary reconciliation services to improve your efficiency.

 

How ARP works:

  • As the seller, you enter into a Receivables Purchase Agreement (RPA) with DBS
  • We purchase your receivables and you legally transfer the title of the receivables to us
  • When the invoice is due, your buyers make payment directly to us or to your DBS Business Account

 

Benefits of ARP:

  • Non-recourse financing1
  • Credit protection of buyers’ default risks2
  • Collection and reconciliation of receivables from buyers

 

Why choose DBS Accounts Receivable Purchase?

  • Leverage our Asian insights and connectivity as you grow your business domestically and overseas. DBS is the first Asian bank with strong regional ARP network across Singapore, Hong Kong, Taiwan, India, Indonesia and China
  • Benefit from our award-winning experience. We were named Best ECA-backed facility at The Asset Triple A Transaction Banking Awards 2013 and Best Structured & Commodity Trade Solution Of The Year In Southeast Asia at the 6th Annual Alpha Southeast Asia Deal & Solution Awards 2012
  • Ensure the smooth on-boarding of your ARP facility with the help of our dedicated sales team

FAQs

What do the terms “recourse” and “non-recourse” mean?

Recourse: If your customers do not pay you after you have delivered the goods/services in good order, DBS will seek repayment from you if you have obtained financing of the invoices.

Non -recourse: If your customers do not pay you after you have delivered the goods/services in good order, DBS will not seek repayment from you if you have obtained financing of the invoices. If you have not obtained financing, DBS will pay you.

What are the benefits of financing from ARP as opposed to a normal trade facility?

When you use a normal trade facility, you receive funding based on your own company financials. With an ARP solution, the quality of the receivables is also assessed.

In which countries can you provide credit cover?
We can support your sales all over the world, depending on the credit standing of your buyer. Simply provide us with their details and we’ll assess accordingly.

When do you pay me in the event of a buyer default?

In the event of buyer insolvency, we will pay you as soon as possible upon receipt of the insolvency evidence from you. If the buyer fails to pay after a predetermined period of time following the invoice due date, the waiting period ranges from 90 days to 180 days in most cases.

What is the interest rate and are there any handling fees?

The interest rate and handling commission fee will vary based on market conditions and risk level of your receivables.

You may call us at 2290 8068 or contact your relationship manager for an assessment of your receivables and an indicative interest rate.

What documents do I need to provide to do ARP on a transactional level?

Once your ARP facility is approved, you will usually need to provide the invoice and proof of delivery.

Do I need a credit facility to apply?

Not necessarily. We will consider your application based on your financing needs.

How long do you take to process the application?

We will process your application within the same working day.

How do I check the status of financing?

You can check the payment status through IDEAL™, our online banking platform. Upon maturity, you will also receive a reminder from IDEAL™.

 

How do I apply?

Simply call DBS Business Care at 2290 8068 or visit our Enterprise Banking Centres, SME Banking or designated DBS Branches and our Relationship Manager will be glad to assist you. We will require details about your trading experience with your buyers.

1DBS maintains recourse to the seller in the event of dispute and/or misrepresentations
2Applicable for non-recourse ARP variant only

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Awards
Awards

Best ECA-backed Facility, 2013, The Asset Triple A Transaction Banking Awards

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