Delivering a supply chain financing first

Delivering a supply chain financing first

When Polish apparel designer, LPP, asked us to collaborate on an ambitious expansion of its clothing suppliers across Asia, we were more than happy to lend our extensive skills in the area.

As one of the world’s leading supply chain financing (SCF) banks – with a broad reach across continents - we’re constantly looking for new and innovative ways to help customers like LPP to grow internationally.

Our Commercial Banking (CMB) team has built a strong SCF partnership with LPP over the past five years that continues to expand at an impressive rate.

With more than 800 suppliers on-boarded in Hong Kong alone, it has now become the largest SCF programme for our CMB team globally, in terms of the size of limits provided.

Growing and thriving

“This is a great first for us – and a real achievement in our long-standing partnership with LPP, which dates back to 2014,” said Konrad Lipski, HSBC Global Relationship Manager for LPP.

“We’re continuing to grow with them – and build new relationships with their suppliers.

“When we introduced the SCF programme to LPP, it was a key milestone for our collaboration. It gives them the ability to get early payment on commercial terms available to a company with a strong credit rating, like theirs.

“Suppliers get paid as soon as they issue an invoice. Normally, without SCF, they would be waiting 120 days.”

Our CMB teams in Europe and Asia-Pacific are now approaching 1,000 suppliers on-boarded on LPP’s behalf, with colleagues in China and Bangladesh also expanding their supplier numbers.

Perfect solution

“We have always found HSBC to be perfect partners for our strategy, because of their profile and capabilities in Asia, as well as Europe,” said Przemyslaw Lutkiewicz, Vice President, LPP - whose brands include Reserved, House, Cropp, Mohito and Sinsay.

“When they introduced the SCF solution to us, we very quickly realised that this was perfect for us, helping us to free a lot of cash from our working capital, while helping our suppliers to improve their cash flow and their solvency.

“This latest expansion shows that it continues to be a win, win, win situation - for the bank, for us and for our suppliers.”