KUALA LUMPUR: Sogo (Kuala Lumpur) Department Store Sdn Bhd has tied up with RHB Bank Bhd to provide Sogo suppliers accelerated online payment without the need for collateral via RHB Bank’s Financial Supply Chain or FSC.

Sogo signed a strategic partnership agreement with RHB to effect the tie-up yesterday. The FSC is RHB’s seamless online platform that provides financing and payment solutions.

According to RHB, the online platform will allow suppliers to get paid quickly, thereby reducing their day sales outstanding, that is their estimated average collection period.

The FSC also aims to facilitate the payment of invoices for Sogo while giving suppliers full visibility of their receivables, thereby easing the reconciliation process.

RHB group managing director Datuk Khairussaleh Ramli said the partnership is an extension of the banking group’s relationship with Sogo, which has been a long-time customer of RHB.

“We already have a banking relationship with Sogo; we are now just extending this relationship to the suppliers.

“With this partnership, it will enable us to penetrate a bigger list of suppliers within the Sogo community. This penetration can be in the form of the [provision of] current accounts, credit facilities, etc,” he said at a news conference in conjunction with the signing.

RHB head of group business and transaction banking Datin Amy Ooi Swee Lian shared that the amount provided under the facility will start at RM10 million.

“We will start with RM10 million, but depending on the take-up [rate] from Sogo’s suppliers, we will accommodate to the demand accordingly, and given that today, [with] the cost of doing business going up, there will definitely be demand [for RHB FSC], which we will look into,” she said.