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Trade and Supply Chain Finance: Benefits of Using Blockchain Technology

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The COVID-19 epidemic has pushed global treasurers to make increased use of trade financing processes to provide faster access to operating capital to themselves and their suppliers.

Manual processing and a rudimentary framework in today’s trade finance system raise risk and expense.

If your business has high financing costs and a long turnaround time for transactions, blockchain is what you need.

Benefits of Using Blockchain in Trade and Supply Chain Finance

As we deep dive into the benefits of trade and supply chain finance, we introduce how #dltledgers utilize blockchain technology for trade and supply chain financing.

Generally, our aim in using blockchain technology is to help you in forming new trading alliances, locating new liquidity pools, and developing new business models.

Now as for blockchain and its benefits for trade and supply chain finance, one of the numerous advantages is that banks can save 5% on financing costs, reduce risks, and boost trade flow visibility.

Sounds great, right?

But how?

Mitigate Risk and Operational Costs

#dltledgers process credits and guarantees quickly and electronically. We acquire detailed insights into client financial positions and transaction histories and track transactions in real-time from start to end.

Discover New Opportunities & Markets

We assist you in discovering new revenue streams with a new class of clear, risk-adjusted, and standardized trade financing and trade credit insurance products.

Proof of Ownership

#dltledgers’ blockchain-powered digital file cabinet enables location and ownership transparency.

Minimize Counterparty Risk

Our blockchain platform tracks E-bills of Lading which eliminates the risk of double-spending.

While it all sounds so good to be true, #dltledgers’ trade finance software for banks and financial institutions is already being utilized to provide better services to their consumers. Many of the said better services include:

  • Finance for digital commerce
  • Factoring or Purchase of Accounts Receivable (ARP)
  • Processing of interbank LCs
  • Finance for Accounts Payable (APF)
  • Financing for Trust Receipts

The Future of Trade and Supply Finance

Trade and supply chain finance, supplied by banks and other financial organizations, plays a significant role in economic growth by facilitating trade.

It works as an economic facilitator, allowing the flow of products between and across economies, hence improving access to commodities, capital equipment, and business inputs for consumers and enterprises.

This encourages company growth and economic possibilities, which help to alleviate poverty.

Reach out to our experts if your enterprise is looking to digitize your trade and supply chain finance operations.

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