Future proofing on-time collections with eGIRO

Feb 4, 2025

Customer

Tonghuai integrates eGIRO and automated digital payments with Finverse to future-proof loan collections ahead of Singapore’s 2025 corporate cheque phase-out. Here’s how we did it.

Most SME lenders in Singapore generally rely on post-dated cheques to collect loan payments. During loan issuance, customers would pre-sign cheques for each instalment, set to be deposited on monthly due dates. While this process was quite manual, it fulfilled the role of a written promise to repay on-time from the borrower.

With Singapore’s phase-out of corporate cheques by 2025, however, the situation has changed. Tonghuai, an SME lender based in Singapore, took proactive steps, partnering with Finverse to integrate eGIRO and automate collections. By doing this, the company and team at Tonghuai ensured continued control over cash flow, simplified their operations, and mitigated manual reconciliation efforts.

Finverse made our transition from post-dated cheques to digital payments seamless. Their eGIRO integration not only future-proofed our collections but also eliminated disruption to our workflows. We can maintain control over cash flow, without the burden of building and maintaining a complex eGIRO integration.

Ryan Lou

Tonghuai

Use Case

Credit Collection

Product

No code

Payment Methods

eGIRO

Location

Singapore

The challenge

Singapore’s decision to phase out corporate cheques as part of its Smart Nation initiative, Tonghuai saw an opportunity to modernise their collections processes with Finverse. As an SME lender used to post-dated cheques, they needed a seamless shift to digital authorisation without disrupting their existing record-keeping or cash flow systems internally and among their customers.

Coupled with that, manual collections would place the burden on borrowers to initiate payment, likely resulting in an increase in late payments as well as extending the amount of time the Tonghuai team spent on tracking and reconciling transactions.

Finding a solution that would allow them to continue monitoring and managing their financial operations closely all the while reducing the need for extensive technical work, was hugely important.

The solution

Finverse provided a seamless transition to eGIRO for digital authorisations, allowing Tonghuai to instantly automate payments, replacing the cumbersome post-dated cheque process with a dynamic digital collection file. The solution integrated smoothly into Tonghuai’s existing workflows as well as maintained their familiar record-keeping practices, allowing maximum control with minimal process disruption.

Additionally, Finverse delivered a bank-compliant spreadsheet that automates collection management without requiring significant technical integration. This customised solution didn’t only keep cash flow predictable but also simplified the entire backend process.

Tonghuai now operates with future-proofed collections, reducing manual work and maintaining full control over their finances.

Finverse helped us adapt swiftly, ensuring we were fully prepared for the cheque phase-out while seamlessly integrating with our existing processes.

Ryan Lou

Tonghuai

Since partnering with Finverse, Tonghuai has seen huge operational improvements, seamlessly transitioning its collections process to meet the demands of the ever-evolving digital landscape. This includes:

Automated collections: eGIRO integration replaced manual cheque handling, streamlining payment authorisations and boosting cash flow efficiency.
Full revenue visibility: Real-time oversight of all collections with minimal manual intervention, ensuring Tonghuai stays on top of its financial data and cash flow.
No technical work required: Finverse’s solution merged smoothly into existing company processes and systems, eliminating the need for complex tech integration.

“Finverse understood our unique needs and delivered a solution that aligns with our existing operations. We’ve future-proofed our collection method and now also have real-time visibility over every payment.”