HSBC has launched a non-recourse receivables finance solution aimed at its large corporate customers, which it says will help reduce their exposure to risk while optimising working capital.
Launched on July 15, the HSBC Receivables Advantage solution is available to corporates that export on open account terms or trade domestically.
Users of the solution are able to sell receivables to HSBC on a non-recourse basis, meaning up to 100% of the non-payment risk is transferred to the bank.
This approach protects suppliers from late payments or default, while providing rapid access to working capital and helping firms build their financial resilience, it says.
“Businesses navigating today’s evolving trade environment require solutions that support financial resilience and help manage risk effectively,” says Bhriguraj Singh, chief product officer at HSBC Global Trade Solutions.
“Working capital and resilience have never been more important. HSBC Receivables Advantage is specifically designed to help large global corporates create balance sheet efficiency, manage buyer credit risk and improve liquidity, empowering them to effectively navigate challenges and pursue growth opportunities with confidence.”
The bank adds that its Global Trade Pulse Survey for this year, published in May and based on responses from nearly 6,000 firms, shows the majority of businesses are viewing trade challenges “as a catalyst for innovation”.
Many respondents said they are reconfiguring their supply chains and reviewing their operational footprints, with 83% planning to nearshore operations to be closer to key customer markets.
“These strategic shifts underscore a growing demand for robust risk management, access to investment capital, and solutions that reinforce investor confidence,” the bank says.
The announcement follows the bank’s launch in May of a financing product aimed at US clients grappling with trade uncertainties and upfront costs such as tariffs.
The product, called HSBC TradePay for Import Duties, involves the bank paying the duties charged to US importers while granting them flexible repayment terms based on their working capital cycle.
