Who is PrimaDollar?
PrimaDollar is headquartered in the UK with offices across Asia and into the US. We work with exporters and importers on a global basis.
Our shareholders include major international venture capital firms, and our lead investor is QBN Capital (see here for mor information about QBN).
What does PrimaDollar do?
PrimaDollar works with importers, exporters and workplaces generally.
- Savings on landed costs: Our platform enables buyers (importers) to pay their suppliers safely at shipment rather than after delivery.
- The typical saving on landed costs by doing this is 1% versus paying after delivery or with delay.
- The saving is there from the first use of the platform which can go live without an IT project or upfront cost or increase in risk – and does not require renegotiation of purchase order terms with suppliers.
- Early payment processes can be linked to facilities provided by banks or funds, so that the cash flow impact of earlier payment is zero – achieved without using LCs or documentary credits.
- Data: Our platform delivers a global, real-time view of what is being shipped by suppliers, regardless of logistics method, logistics provider, geography and product.
- Many larger organisations use multiple logistics partners and / or have poor systems to track what’s shipped, as it ships.
- We solve that with real-time data on shipments, uploaded by exporters as they ship, digitising it using our OCR and machine-learning technologies, and making available to the buyer across brands, subsidiaries and locations – all the way to enterprise level and in real-time.
- ESG: Our platform collects data and documents in real-time on what is being shipped, and we monitor worker conditions in real-time – enabling workplaces to understand how well ESG standards are implemented for themselves and their global supply chains.
- Our ESG capabilities can be used standalone or in combination with finance.
- Our worker app supports the “S” and “G” of real-time ESG and goes on worker mobiles connecting to them in real-time, anonymously and continuously:
- Imagine being able to see, in real time, how workers are treated in all the workplaces in your supply chain, with diagnostic information allowing a deep dive into any issues arising
- With our assistance, this data can also be surfaced to customers in shops and online, connecting them directly to the workers that made the products – answering finally the question “Who made the product?”.
Who does PrimaDollar work for?
For trade finance / supply chain finance: typically, the decision to work with PrimaDollar is taken by the importer – the buyer. This is because our services are typically combined with trade finance or supply chain finance which is arranged with the support of the buyer from his relationship lenders or from lenders / non-banks that we introduce to the buyer.
For ESG / worker monitoring: workplaces can sign up with us directly without needing any support from their customers.
How does PrimaDollar’s platform work?
Our services are provided via an online digital trade finance platform. Digital trade finance platforms deliver amazing functionality to importers, exporters, the exporter’s bank and to funders. See here.
There is usually a minimal amount of IT work in order to get our platform live. This is because data flows across the platform from suppliers, and is not (typically) extracted from the buyer ERP(s) or from buyer-side logistics platforms. This is also why the platform provides amazing management information for organisations with multiple ERP systems and multiple logistics partners.
Collecting data and documents, including real-time ESG data
- Decide which exporting suppliers should join the platform.
- Decide what data and documents should be provided (eg: bill of lading, packing list, inspection reports, commercial invoice, certificate of origin, other certificates relating to materials used in production, ESG information including bills of materials and data on sourcing / product contents).
- Introduce PrimaDollar to the exporting suppliers.
Each time a supplier ships, he provides the required data and documents by uploading them over the platform. Documents are digitised and management information flows. No IT project required.
PrimaDollar’s worker app is available on a standalone basis – it can be used completely independently of trade finance and document processing – or integrated. Often PrimaDollar is approach by the supplier to implement the worker app for his workplace(s) independently of any buyer.
If trade finance is to be added, then:
- PrimaDollar sets up one or more financiers, which could include internal treasury or offshore funds – and the rates /terms of the facilities provided are negotiated by the buyer directly.
- Exporting suppliers are on-boarded by PrimaDollar for KYC / AML purposes. This usually takes an hour or two per supplier, depending upon the information provided – and there are no exclusions for size or location other than exporters do need to be compliant.
- The buyer decides on the advance rates (% of shipment value) and the discounts (cost accepted by the exporter) for early payment.
- The advance rate can be 80% or 90% or 95% or even 100% of the shipment value. This is set by the buyer.
- The discount is the cost accepted by the exporter to get paid at shipment (eg: 2% for 120 days acceleration in terms). The buyer keeps the difference between the discount the exporter accepts and the actual cost of providing the service (principally the cost of money, first step above – which is where typical savings of 1% or more against landed costs are generated).
- Exporters ship, get paid.
- Buyers pay later.
How does PrimaDollar and the platform help importers with financing?
PrimaDollar’s model allows buyers to attract lower cost funding and larger limits because:
- The platform integrates real-time data on ESG – compliance with environmental, social and governance standards. This opens up access to green, sustainable and social funding sources that are typically subsidised or supported by governments, regulators and multi-lateral banks.
- PrimaDollar’s trade finance products are Shari’a compliant, which means that they are accepted by scholars as being an acceptable part of the Islamic financial world. This opens up funding sources that are typically not available to most corporates in the ordinary course of their business.
- We also maintain strong relationships with a number of global credit funds that are looking for short term, good quality trade finance assets to add to their portfolios. Typically buyers should be rated at least single B in order to be eligible for these funds.
How can I find out more?
With a global network and global coverage, talk to us.