HomeTrade Financing collaboration

Trade Financing collaboration

Zero-recourse & Monetized Trade finance partnership from ProFinTech

Zero-recourse & Monetized Trade financing Collaboration for
Mid-sized enterprises

from ProFinTech

What Mid-sized Enterprises Say

Since partnering with ProFinTech, our supply chain operations have significantly improved. They have become very smooth. We are getting upfront payments for our products. And our buyers & suppliers are happy with the credit-assessment process and flexible financing from ProFinTech. This whole setup made our relationships with both suppliers and buyers a lot stronger.

Agricultural Products Manufacturer

We're very satisfied with our trade finance partnership with ProFinTech. Their team has efficiently addressed the intricate financing requirements of our rapidly growing company and our distributors. 

Fast growing Consumer Appliances Company

Whether it’s a mid-sized enterprise in pharmaceuticals, agriculture, logistics, auto components, textiles, or a dynamic B2B marketplace, businesses strive to maintain a seamless flow of finance. This is crucial for driving trade. Additionally, they also want to keep their buyers and suppliers intact, and support them with easy and quick financing. Seamless and timely access to financing

  • Optimizes complex supply chain networks
  • Streamlines operations
  • Enables seamless transactions

Here, we will detail out how ProFinTech is streamlining financing for complex supply chains.

Table of contents:

 

ProFinTech’s Trade finance collaboration : for mid-sized enterprises and their MSME partners

Trade financing collaborations involve partnerships between financial institutions, FinTechs like ProFinTech and businesses, to facilitate smooth and efficient trade transactions. These collaborations with a range of trade finance solutions, like supply chain finance, letters of credit, bank guarantees etc, optimize supply chain finance, improve cash flow, reduce risks, and speed-up payment cycles.
  1. Key benefits from ProFinTech’s Trade finance collaboration

Some key benefits are captured in the diagram (below) :

  • Smooth supply chain operations

MSMEs often struggle with delayed payments from larger buyers, which limit their working capital and growth. Trade finance collaborations can accelerate payments to suppliers, ensuring smooth supply chain operations.

  • Risk Mitigation

Trade involves dealing with less creditworthy buyers and unexpected developments, which is a risk. Data and Advanced tech based Trade finance collaborations evaluate the creditworthiness of every party that is involved, at every transaction level. ProFinTech delivers financing with Zero Recourse – this is a risk-free experience to all parties.

  • Trade transaction financing

Trade finance collaborations help MSMEs prevent the impact of delayed payments. Leveraging such collaborations, MSMEs can improve cash flow, increase operational efficiency, and sustain their business growth.

  • Inventory financing

Businesses frequently face the challenge of excess inventory due to production issues or unexpected demand. Trade finance collaborations can offer financial support to manage inventory levels and enable optimal stock management.

  1. The ProFinTech Difference (Vs) Traditional Trade Financing

Credit Bazaar, our highly contextualized and data-enriched financing platform,  can bring enhanced liquidity, risk mitigation and optimized cashflows to mid-sized enterprises & their suppliers. By employing advanced data analytics and real-time financial data analysis, it can strengthen supply chain financing process.

What makes ProFinTech’s trade financing collaboration superior from other options in the market,

Our innovative model offers trade financing with zero recourse to enterprises, thus eliminating the fear of default.Unlike traditional financing methods like bill discounting, invoice financing, or TReDS that may involve recourse to the borrower, we are addressing payment delays caused by operational or administrative challenges within mid-sized & large enterprises.

TReDS operates on an e-NACH like process (e-NACH is a financial system that helps banks and other financial institutions automate recurring transactions). This means any delay or default can technically classify the borrower as a defaulter. We are removing this fear factor out of the system.

Traditional financing often offers ambiguous rewards or extended credit periods. ProFinTech leverages monetization for every transaction on our Credit Bazaar platform. Whether you are a buyer or a supplier, you will directly benefit from each interaction. To streamline this settlement process, we have integrated blockchain technology.

Our onboarding process is light, easy and faster and does not require extensive ERP integration. We maintain a streamlined approach to avoid the complexities and time consuming ERP integrations typical of traditional bill discounting or supply chain finance models.

ProFinTech : Zero-recourse, Monetized trade financing

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  1. ProFinTech’s Trade finance collaboration : The Process

Our process is a simple streamlined business arrangement that needs minimal involvement and integration of the enterprise. After onboarding with ProFinTech, the enterprise has to just connect us with their network of supply chain partners, third- party vendors, service providers, and transporters. From then, we will take care of the initial outreach and marketing efforts. ProFinTech will install the platform with the interested vendors, ensuring no disruption to the enterprise’s ERP system. The enterprise will only need to confirm ongoing business relationships (like purchase orders or post-shipment transactions) when vendors seek financing.

As shown in Step 5, ProFinTech’s operations are driven by big data, leveraging both public and private datasets & the interconnectivity within. Our integration with GST is a prime example of a strong connection to a crucial data source. Through our Credit Bazaar platform, we maintain a robust 3-tier verification process:

  • High-Level Data Check :

We leverage public and private data sources, including Fastag and MCA account aggregator, to conduct preliminary vendor assessments. This provides a comprehensive overview of the vendor’s business activities, especially those involving the enterprise.

  • Invoice-level Assessment :

When vendors seek financing against invoice, we conduct a thorough analysis of their historical transaction data. We examine factors like the frequency and recency of transactions with the enterprise. Our recent implementation of CAM (Credit Assessment Memo) reports further deepens our analysis, providing a detailed assessment of the vendor’s financial health based on multiple data sources.

  • Digitally driven Fast & Efficient funding :

Our primary goal is to accelerate and simplify the funding/financing process. We prioritize speed, efficiency, and a seamless digital experience, eliminating the need for tedious paperwork and manual interventions.

Interested in streamlining your supply chain financing and supporting your suppliers and buyers? Contact us  to explore our innovative trade financing collaboration that requires minimal operational changes.

Interested in streamlining your supply chain financing and supporting your suppliers and buyers?
Contact us to explore our innovative trade financing collaboration that requires minimal operational changes.

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