Financial Access Solution on Technological Platform

Sat, 26 Aug 2023 13:36:00  |  Print  |  Email   Share:

Discounting of accounts receivable is one of the new solutions that could create opportunities for convenient and rapid financial access for export businesses.

At the seminar “FinTech financing for Vietnam's Exporters”, Ms. Letitia Chau, Deputy CEO of OLEA, stated that in the current context, import and export enterprises are in need of financial stimulation and support."


Seminar: "FinTech financing for Vietnam's Exporters"

Therefore, the seminar is organized with the aim of creating opportunities for businesses to have better access and information about the current situation and solutions for businesses on the digital technology platform. This is also the reason why OLEA is present to introduce financial support solutions on the technological platform for export businesses.

OLEA is a joint venture between Standard Chartered Bank - a reputable global commercial bank with experience in trade, and Linklogis - a financial technology company, providing technological solutions.

"We have spent many years focusing on supporting exporters in providing services in various countries such as the United States, Asia, with various types of goods. The advantage is that OLEA can provide fast and efficient payment processes, and businesses will have various alternative channels to access finance.

Furthermore, if businesses encounter difficulties, such as needing to purchase additional raw materials for production units, we can also help businesses find resources and reliable sources of finance," said Ms. Letitia Chau.

The Deputy CEO of OLEA added that currently, OLEA has various trading activities, involving over 24 countries participating in access and more than 30 countries on the buyer-seller side of commodities. This demonstrates that it is a platform with a presence in important locations, with a main representative office in Singapore and a representative office in Vietnam. OLEA can directly engage with businesses to share processes or other requirements. Apart from Singapore, OLEA also has offices in Hong Kong, China, London, and the United States, making it fully capable of assisting the customers of global businesses.

“The reason for us to collaborate is that we offer distinct solutions in commercial finance. Some companies analyze that they have strong advantages in terms of information and technology, but when it comes to market understanding and meeting customer requirements, OLEA possesses an extensive portfolio of customers, stakeholders, and wide-ranging touchpoints with end customers.

As a result, we can understand the demands of businesses and together with them, provide effective solutions. OLEA's foundation is a fully digitized system that allows us to operate anytime, anywhere. I would like to explain further that this is an open platform, aimed at providing support when needed. There will be various diverse sources of funding available to meet the goals of creating long-term collaboration," emphasized the Deputy CEO of OLEA.

Further analyzing OLEA's solutions, Ms. Bui Thi Hong Le, Director of Global Business Division at OLEA, shared a story about some real customers that OLEA has engaged with. These customers had good production and business activities, with numerous orders, but lacked the capital to meet additional orders from buyers. They had exhausted their bank collateral and reached a level of risk in terms of debt-to-equity ratio and debt-to-total-assets ratio that the bank couldn't extend their credit limit.

This is a typical challenge for small and medium-sized enterprises, so OLEA serves as an additional source of financing alongside the traditional financial sources that businesses have with banks. OLEA's solution involves analyzing the funding sources for current accounts receivable in the Vietnamese market, specifically for export-related receivables.

"Instead of export businesses having to wait for the day when their debts are paid slowly, through OLEA, we can receive the money immediately. Our solutions do not assess the credit of the business, but rather assess the credit of the buyer. If the buyer's credit is good enough, then OLEA accepts the receivables from the business for that buyer. This is a product of accounts receivable discounting, so for the algorithms in the business's accounting system, the debt ratio will not be affected. OLEA's platform also supports various different businesses, so it can display all the receivables with many different buyers”, explained Ms. Hong Le.

Speaking at the seminar, Ms. Letitia Chau affirmed that this is an opportunity for businesses to receive information from experts and integrate internationally with the overall picture of the economy. This can help identify opportunities and challenges from Free Trade Agreements and promote their own exports.

OLEA is committed to creating maximum convenience to support businesses in shortening the access process and implementing quickly, providing supplementary financial resources to achieve growth targets for this year and the coming years.

Source: DIEM NGOC (Business Forum Magazine).


By: Translator: LeAnh-Bizic


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