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Treasury best practice: Groundbreaking solution for F&B transactions
Striving for automated account reconciliation
23 Jun 2020 | The Asset

Often dealing with cash and having difficulty in reconciliation when collecting from customers, F&B operator SG5 in Singapore set out on a mission to craft a seamless process where B2B payments could be done electronically. Working with DBS, SG5 put in place an end-to-end QR collection system for F&B transactions.

Rather than asking for cash or bank transfers, SG5 can now allow customers to scan a QR code resulting in instant payments. Powered by Singapore’s PayNow system, the new solution allows for automated accounts reconciliation functionalities in the backend, matching transactions with the relevant invoices.

In addition to collecting in real-time, SG5 can do a number of functionalities on the system such as the consolidation of multiple invoices into one QR-code based transaction or have the flexibility to make full or partial payments for one or multiple invoices. SG5 can also send a QR-code requesting for payment to their customers who are sometimes not on-hand to receive the goods in-person.

As a result of the solution SG5 has been able to save an estimated 3,300 manhours per month with SG5’s frontline staff not having to spend hours travelling around Singapore to physically collect from their customers.

“On average, our frontline staff spend around 3.5 hours every day traveling to different parts of the island to collect cash and cheque payments. With the new payments solution and precious man-hours saved, I hope to be able to upskill my staff so that we can work together to bring the business to new heights. It will also be a boon to our cashflow as we will be able to receive payments instantly upon delivery of goods,” states Alvin Chua, CEO of SG5.

SG5 wins the Best Payments and Collections Solution, Singapore within the SME section of The Asset Triple A Treasury, Trade, Sustainable Supply Chain and Risk Management Awards 2020. To see the full list of SME winners please click here.

For more information about the awards please click here.

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