#supplychainfinance

3 Common Types of Trade Finance Products Explained There are several definitions of trade finance available online, and the terminology employed is intriguing. It is characterised as a "science" and "an imprecise term covering a variety of different activities." Both are correct, as is the nature of these things. Managing the money required for international trade is a precise science. However, within this science, Trade Finance Service has access to a vast range of tools that affect how cash, credit, investments, and other assets can be used for trade. Common Types of Trade Finance Products: 1. Letter of Credit A letter of credit is a payment pledge provided by a bank on behalf of the importing client. It's a common trade finance document that you should be familiar with. Essentially, it is a commitment by the bank to pay the exporter the money within a specified time frame and under the terms and circumstances agreed upon. It enables sellers and buyers to mitigate some of the inherent hazards of international trade, including currency fluctuations, non-payment, and economic instability. 2. Purchase Order (PO) Finance Purchase Order (PO) financing is intended for SMEs that are experiencing inefficiency in their cash flow. To put it simply, it gives funds to pay suppliers with the validated purchase order in order to ensure seamless cash flow. It enables firms to accept a huge volume of orders while adjusting the lending basis to match their specific requirements. This is especially true for SMEs, who frequently get a significant amount of orders but lack the necessary working capital to process them. That is exactly what it does. Even if the volume of orders reduces, there are no ties, so you can quit using it whenever you want. Read more: https://www.emeriobanque.com/blogs/3-common-types-of-trade-finance-products-explained #Tradefinance #letterofcredit #BankGuarantee #supplychainfinance #SMEs #internationaltrade

Get Trade Finance Services As A Short Term Working Capital A type of financing known as trade finance is created especially to support transactions involving international trade. It gives companies that import and export products and services access to short-term working capital, assisting them in managing the risks involved in international trade. Short-term working cash can be obtained through a variety of trade finance services, including: 1. Letters of Credit: A letter of credit is a document that, under certain circumstances, a bank issues to a seller of products or services to guarantee payment. This can lessen the seller's risk of not getting paid and give them the working capital they require to complete the transaction. 2. Documentary Collections: A documentary collection is a payment strategy in which the buyer and seller trade documents and money through the help of banks. Given that the seller can get paid after presenting the required paperwork, this can be a helpful way to get short-term operating capital. 3. Invoice Financing: Getting short-term working cash through invoice financing entails using invoices as collateral. Businesses that have unpaid invoices that are approaching their due date but require cash sooner to meet their own financial responsibilities may find this to be a useful option. 4. Supply Chain Finance: Financing the complete supply chain, from raw materials to finished goods, is known as supply chain finance. Given that it offers financing throughout the entire production cycle, this can be a helpful way to acquire short-term working capital. In general, trade finance services can be a helpful way for companies involved in international trade to get short-term operating capital. Trade finance enables companies to manage their cash flow and lower the risks involved in cross-border transactions by giving them access to financing that is particularly suited for such transactions. Visit us: https://www.emeriobanque.com/trade-finance-services #TradeFinanceServices #FinanceServices #SupplyChainFinance #LettersofCredit #DocumentaryCollections

Supply Chain Finance to Reach USD 13.4 billion by 2031 at 8.8% CAGR The supply chain finance market was estimated at $6 billion in 2021 and is forecast to reach $13.4 billion by 2031, developing at a CAGR of 8.8% from 2022 to 2031, as per the latest reports released by Allied Market Research. Additionally, the reports contain a comprehensive evaluation of the most favorable strategies, extending market requirements, market size, and estimations, value chain, key investors, leaders & opportunities, competitive scenario, and local landscape. The report will provide vital information to new contestants, shareholders, leaders and investors in presenting important techniques for the future and initiating major steps to reinforce and uplift their position in the market. COVID-19 Scenario The sudden outbreak of the Covid-19 pandemic had adverse effects on the development of the global supply chain finance market, leading to an increase in remote working activities building an overwhelming task of receiving data from multiple locations & sources for the supply chain finance firms. Read more: https://www.emeriobanque.com/news/supply-chain-finance-to-reach-usd-13-4-billion-by-2031-at-8-8-present-cagr #supplychainfinance #CAGR #blockchain #tradefinancedivision #globalmarket #LetterofCredit

Vayana TradeXchange initiates its first transaction in partnership with VoloFin Vayana TradeXchange, the International Trade Financing Services (ITFS) platform facilitating cross-border trade finance under the supervision of the International Financial Services Centre Authority, GIFT City, announced the completion and disbursement of its first set of export financing transactions. Vayana TradeXchange (VTX) is built and operated by Vayana Pvt Ltd, a 100% subsidiary of Vayana Network, the largest Supply Chain Finance platform in India. The first set of transactions on VTX have been financed by VoloFin, a global FinTech company offering invoice and supply chain finance solutions to SME businesses. The first cross-border transaction between an Indian Exporter and the USA Buyer was successfully financed on VTX by VoloFin. VTX, the auction-based electronic platform will facilitate the financing of international trade flows by introducing various trade financing products at competitive terms. This will help exporters and importers in India and across the globe to convert their receivables into cash or obtain financing for payments of imports of goods & services. Read more: https://ngulminthanglhangh.wixsite.com/ngulminthanglhanghal/post/vayana-tradexchange-initiates-its-first-transaction-in-partnership-with-volofin #NgulminthangLhanghal #banking #VayanaTradeXchange #TradeFinancingServices #VayanaNetwork #SupplyChainFinance

ADB Signs Supply Chain Finance Deal With Bank of Georgia The latest news says the Asian Development Bank (ADB) has signed a supply chain finance deal with the Bank of Georgia to share around 50% of its risks related to supply chain finance transactions with the main purpose of strengthening financing and reducing supply chain management risks for SMEs. As per ADB, this is the very first time it has signed such a type of arrangement, which will bring two institutions together to determine a risk-sharing program for avoiding the risks of corporate non-payment in supply chain finance transactions. Steven Beck, head of the ADB’s trade and supply chain finance program (TSCFP) stated, “This deal expands our trade finance partnership with the Bank of Georgia that started in 2011 and will be stimulant in growing supply chain finance in the area.” Read more: https://www.axioscreditbank.com/blogs/adb-signs-supply-chain-finance-deal-with-bank-of-georgia #supplychainfinancetransactions #supplychainmanagement #AsianDevelopmentBank #supplychainfinance #financialinstitutions

Trade finance startup Vayana Network raises Rs 114 cr to increase trade credit to micro, small businesses Credit and Finance for MSMEs: Trade financing startup Vayana Network on Wednesday announced it has raised Rs 114 crore as part of its Series C funding from International Finance Corporation (IFC) and PayU. The company said it plans to use the funds to build products focused on helping MSMEs better manage their working capital and become credit ready. Vayana Network has already raised Rs 283 crore in its existing round from new and existing investors, including Marshall Wace, March Capital, Chiratae Ventures, CDC group, Jungle Ventures, and well-established family offices in India and abroad. “While we are set to do more than $10 billion (Rs 76,500 crore) of trade financing in India alone this financial year, we are focusing on creating tools and infrastructure to help small businesses manage their working capital efficiently and sourcing trade finance at the most affordable rates. We will continue to build on our leadership role in public trade infrastructure including GST, e-Invoice and e-Way Bill and embedding credit for every business in the supply chain,” said Ram Iyer, Founder and CEO, Vayana Network. The company will also launch Vayana ITFS (International Trade Finance Services) platform at GIFT City, Gujarat in the current financial year. The platform will enable exporters and importers to access international trade finance facilities at competitive rates, added Iyer. Read more: https://vk.com/@ngulminthanglhanghal-trade-finance-startup-vayana-network-raises-rs-114-cr-to-inc #supplychainfinance #ITFS #tradefinance #tradecredit #IFSCA #Ngulminthang