Innovative Freight Forwarders are now providing comprehensive trade finance solutions to their customers, by taking advantage of the Neurored Trade Finance BlockChain.
Importers and Exporters now have an alternate mechanism to finance their trading operations. Rather than time-consuming, traditional trade financing provided by banks, trade is now being financed by Freight Forwarders, enabled by this innovative Neurored technology.
Freight Forwarder customers will get Credit Lines to finance their trading activity and automate payments directly from their newly established Credit Line.
The Neurored Trade Finance BlockChain solution takes simultaneous advantage of well-aligned conjunction of logistics and technology services, which we describe below:
- Customers leveraging Freight Forwarder logistics services can negotiate more favorable incoterms for their counterparties. Importers will be able to buy FOB from their suppliers, which will clearly open the scope of suppliers who agree with these terms. Exporters will be able to sell CIF to their customers, which will also open the scope of buyers who agree with these terms.
- Leveraging Neurored integration with the Ebury Fintech Platform for Import-Export finance and B2B Cross Border Payments, Freight Forwarder customers will get Credit Lines to finance their trading activity and automate payments directly from their newly established Credit Line.
- Leveraging the combination of the Neurored Supply Chain Network and BlockChain technologies unifies all supply chain participants (Supplier, Freight Forwarder, Buyer, Inspection Entity, etc), enabling each to upload their respectively required documents into the BlockChain, ensuring all commercial terms have been addressed.
This transparency leads to Suppliers being paid directly from Ebury Credit Lines when commercial terms have been met and registered in the Blockchain.
The Neurored Trade Finance Solution has many advantages over the traditional Letter of Credit, which we explain below:
- A Letter of Credit creates trust through the banks of seller/buyer counterparties. The banks are the participants who review all of the documentation to make sure commercial terms have already been addressed before processing any payment. This is heavily intensive, manual paperwork and consequently has a high cost.
- The Neurored Trade Finance Solution creates trust thanks to a combination of technologies provided by Neurored and greater logistics capacity provided by Freight Forwarders. The final result is a process with less cost, where documents are uploaded and reviewed by all participants of the supply chain, keeping track on the BlockChain of all the documents and approval process required before doing a payment. Simultaneously and very important to note, the process also has the added advantage of achieving lower freight costs when counterparts charge you for them.