Ping An Digital Bank launches purchase order financing for export e-commerce merchants

Ping An Digital Bank (International) Limited launched a purchase order financing product tailored to cross-border e-commerce merchants on 4 September, which it said made it the first digital bank in Hong Kong to offer dedicated factoring services to exporters in the sector. The facility advances up to 95 per cent of eligible accounts receivable, with financing capped at $5 million per merchant and a repayment term of up to 120 days. Borrowers are not required to post traditional collateral, needing only qualifying invoices to draw on the line. The bank said approval and drawdown can be completed on a T+1 basis.

The product is aimed at merchants operating on open-account payment terms. Ping An Digital Bank, a wholly owned subsidiary of Lufax Holding and a member of Ping An Insurance Group, received its banking licence from the Hong Kong Monetary Authority in May 2019. The bank has framed the offering as support for SMEs pursuing overseas expansion.

UNDERWRITING WITHOUT COLLATERAL

Rather than assessing borrowers on balance sheet strength, the bank evaluates applications using real-time sales data from merchants' cross-border buyers. Thomas Tung, the bank's chief business officer, said the product was designed to help SMEs capture global cross-border trade opportunities.