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There are many ways in which trade financing and supply chain financing are mutually beneficial. Risks, such as late payments from customers or lost shipments, can be mitigated with the assistance of trade financing. In contrast, supply chain financing facilitates better cash flow management by lending businesses money against their receivables and stock. When it comes to financing the exchange of goods among countries, trade finance is where it’s at, while supply chain finance is more concerned with transactions that take place within a single country or region. Supply chain finance is utilized to assist in the manufacturing, distribution, and shipping stages of a company’s supply chain, while trade finance is used to assist in the importing and exporting of goods.
By employing blockchain technology, Triterras’s FLEET platform unifies trade finance as well as supply chain finance. It provides safe and simple access to trade finance tools like letters of credit and working capital for businesses. Tokenization of their trade assets and inventory facilitates their use as collateral for supply chain financing. There is less opportunity for fraud and non-payment because of the increased visibility and transparency made possible by Triterras’ platform, which also enables real-time supply chain management and tracking for businesses.