Providing Trade Finance with LendScape

TechNote

One important element of providing working capital finance solutions to businesses is funding the ability to purchase goods and materials. In a classic scenario, the business may have organised its own Letters of Credit or borrowed money to pay deposits and pay for shipments; tying up valuable working capital. With the LendScape module, we allow service companies to offer a holistic solution for funding the purchases necessary to accept new sales orders; effectively bridging the gap. The system allows the streamlined management of an overall transaction, from initial sales order receipt, to initiation tracking of purchases and, finally, issuance of an invoice for the goods delivered to the end customer. The trade finance facility sits comfortably alongside a classic receivables and/or inventory finance facility, such that the client has a single provider of all of its funding needs. Importantly, a single system approach also provides valuable risk controls and ensures the trade transaction is repaid, prior to releasing funds against receivables.

Without LendScape

  • Unable to offer efficient Trade Finance services
  • Time consuming, manual processes mainly based on Excel
  • No single system dedicated to Trade Finance
  • Labour intensive for all parties involved
  • Difficult to accurately track progress and financing across a single transaction
  • Lots of duplication and potential errors due to existing processes
  • High barrier to entry to this market for finance providers
  • High risk with so much to track and control
  • Current solutions unsatisfactory and restrict growth for end customers

With LendScape

  • Offer new services to clients: Funding for entire working capital needs of business
  • Increase trade: Encourage the flow of trade, by financing every transaction in the chain
  • Encourage growth: Drive strategic growth by funding sales orders and enabling a business to expand
  • Improve efficiency: Eliminate off-line, manual processes
  • Cost reduction: Reduced headcount due to less manual processes
  • Revenue opportunity: Flexible fee structures to maximise income
  • Reduce risk: Clearer understanding of the overall transaction risk profile
  • Product portfolio: Expand offering using existing LendScape platform
  • It provides the ability to pay third parties such as the revenue and customs and shipping agents
  • Manage forward contracts to protect clients from currency exposure

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