What is it?
Supply Chain Trade Finance is a breakthrough for large multinational corporates whose supply chains stretch into international markets.
It has been invented by PrimaDollar.
Supply Chain Finance + Trade Finance =
Supply Chain Trade Finance
Getting exporters paid at shipment reduces costs and risks in your supply chains and directly leads to higher margins.
How does it work?
The platform sits in between the buyer and his suppliers, and coordinates the commercial and logistics documents, and makes stated payments to suppliers based upon arrangements that the buyer controls. For example, some suppliers can be paid up to 95% of the invoice value at shipment, whilst others might be paid only 80%. If issues arise, the platform can accept credit notes; the risk that the supplier is overpaid is significantly reduced and the regular to-and-fro of international trade is fully supported.
Funding comes from the buyer’s relationship banks or funders that are arranged by PrimaDollar. This means that funding costs are low, and negotiated by the buyer directly. PrimaDollar can provide funding itself if this is needed – for example, for seasonal peaks.
The platform is fully online. Dashboards are available to the buyer, suppliers and the funders that show shipments, documents and cash movements in real time. Our digital trade finance platform is described here .
There are significant benefits:
No more LCs: LCs are no longer required to secure orders because exporters can be paid against shipping documents. Quicker, cheaper, simpler.
Pay at shipment: Improves the stability of emerging market supply chains and reliability of logistics paperwork; your lower cost funding puts savings directly into the hands of suppliers that leads to better pricing for you.
Safe earlier payments: Payments are in stages: X% at shipment against shipping documents, Y% at delivery, and Z% later with integrated support for credit notes. This means that the risk of suppliers being over-paid is mitigated.
Still low-cost funding: Funding comes from your existing bankers or introduced by us, so remains at low cost; funder(s) do not deal directly with suppliers, so smaller suppliers and more difficult countries are included.
Integrated logistics documents: Our platform integrates commercial and logistics documents. Get immediate benefits in your processes and data flows, and cost savings through digitisation.
No change to existing: Existing supply chain finance programs continue unchanged; existing investments in platforms are not disturbed. No set up costs from us.
I want supply chain trade finance: what next?
Contact us to find out how supply chain trade finance can be added to your existing supply chain finance program. There is no set up cost from us – and we simply need to coordinate with your existing lender. Usually implementation is quick because many of the processes that we digitise are manual or separately handled from current billing and payment environments.
Get your suppliers paid at shipment now. Improve intake margins, and strengthen your supply chain.
Trade finance and ESG
Increasingly, trade finance facilities and supply chain finance will be linked to compliance with ESG standards in supply chains – which we natively support across our platform.
How can I find out more?
With a global network and global coverage, talk to us.