Reply To: What are the most prevalent trade finance product categories, and which sectors commonly employ them?

[Allwyn Anand]

These are the most prevalent forms of trade finance products:

LOC is utilized to guarantee payments to vendors for supplied goods or services. They are frequently used in global trade and often required by sellers to assure payment if the client fails on the transaction.

Factoring is a method of financing in which a business sells its invoices to a 3rd party at a discounted price to obtain cash more rapidly. Businesses frequently utilize this in the wholesale, service and manufacturing sectors.

Supply Chain Finance is a form of finance that enables a business to gain access to funds depending on the credibility of its customers or suppliers. Businesses can utilize this in various industries, including retail, manufacturing, and logistics.

Trade credit insurance protects a business against the financial risks of selling services or goods on credit. Businesses frequently utilize this in the service and manufacturing sectors.

Kratos is the flagship product of Triterras, which specializes in delivering trade finance solutions to the commodity trading business. It is a blockchain-based system that links commodity traders, banks, and other financial firms to facilitate the buying and sale of commodities, with real-time tracking, accessibility to trade financing, and the capability to perform due diligence on possible trading partners.