The International Trade Financing Services (ITFS) platform is being tested by the Indian trade financing company M1NXT.
Small firms will be able to get payments sooner and at reduced interest rates using ITFS, according to the website Financial Express.
According to Jacob Raphael, chief executive of M1NXT, “the organisation is seeking to onboard and interact with as many national and international institutions as possible for bringing the liquidity for the exporters of India.
According to the Financial Express article, India only accounts for $6 billion of the multi trillion-dollar market for trade financing.
The company’s efforts come at a time when digital technology is spurring innovation in the field of trade finance and, as recently observed here, contributing to a more efficient procedure.
In the past, acquiring credit may take days or weeks, especially if it was a business’s first time doing so, and trade finance was slowed down by protracted risk assessment and underwriting procedures.
However, the lending process has sped up to the point that many trade finance loans can now be approved and paid on the same day thanks to banks and their partners’ expansion of their digital toolkits.
As a result, new loan solutions have been created, such as Santander’s buy now, pay later (BNPL) service for international firms.
