TRADE FINANCE
Streamlining Businesses By Connecting Markets Through Trade Finance Solutions
What is Trade Finance?
Trade finance is a set of financial instruments and products that are used to support international trade transactions. It helps mitigate the risks associated with trade, such as the risk of non-payment or the risk of goods not being delivered. International trade finance can also help to bridge the gap between the time that goods are shipped and the time that they are paid for.
Who is it for?
Established Exporters
Businesses that sell goods and services to buyers in another country to ensure they'll get paid after shipping their products.
Importers
Businesses or individuals who purchase goods and services from sellers in another country. Trade finance in India offers them mechanisms to guarantee payment only after the goods have been received and are as per the agreed terms.
Banks and Financial Institutions
They play a pivotal role in facilitating global trade finance by providing necessary financial instruments such as letters of credit, bank guarantees, and documentary collections.
Unlock the Potential of Trade Finance Services
Risk Mitigation
Trade finance provides instruments, such as letters of credit, that can significantly reduce the risks of non-payment for sellers and delivery risks for buyers.
Enhanced Cash Flow
Exporters can receive quicker payments and improve their cash flow through various trade finance tools. For instance, discounting bills of exchange can provide immediate cash.
Increased Trading Capacity
By offering secure payment methods and extending credit, businesses can expand their trading relationships and potentially access new markets.
Flexible Credit Terms
Export credit insurance, a component of export finance, can protect sellers from the risk of non-payment by foreign buyers.
How it works
01
Onboarding
Businesses register on KredX GTX & undergo a KYC verification process, ensuring that they comply with AML and CFT regulations.
02
Invoice Upload and Acceptance
Users upload vital trade documents like export invoices and bills of lading. The platform then consolidates this information into a "Trade Factoring Unit," which represents the value and details of the transaction.
03
Bidding
Interested financiers place bids on the Trade Factoring Unit. Their bids specify the rate of financing, the cost of the funds, and the proposed time for disbursement. As an exporter, you review & choose the best bid.
04
Disbursement
Once a bid is accepted, the financier releases the funds. The money is typically transferred directly to the exporter's bank account.
05
Repayment
The buyer, upon receiving the goods repays the financier as outlined in the agreement signed during the disbursement phase.
02
Invoice Upload and Acceptance
Users upload vital trade documents like export invoices and bills of lading. The platform then consolidates this information into a "Trade Factoring Unit," which represents the value and details of the transaction.
04
Disbursement
Once a bid is accepted, the financier releases the funds. The money is typically transferred directly to the exporter's bank account.
Estimate your export factoring interest cost
Invoice Amount
298000
$ 100,000
$ 1,000,000
Payment terms (i.e. invoice due date)
130
60 days
180 days
How much you could advance now
$ 0
Plus, when invoices paid
$ 0
What you will pay
$ 0
Disclaimer:
The figures generated by this calculator are intended as a guide only. This shall not, and is not intended to, constitute any funding commitment. Rates will be given by financiers according to their analysis of yours and your buyer's risk profile.
Not sure where to start?
Ask about KredX GTX products, pricing, implementation, or anything else. Our highly trained reps are standing by, ready to help.