ICC press release: cash against data
London November 5th 2024 - press release from the ICC United Kingdom on the launch of the cash against data white paper.
🚀 ICC United Kingdom and PrimaTrade present:
Accelerating Trade Finance with "Cash Against Data" for Manufactured Goods
We're thrilled to introduce our latest white paper for CFOs and Corporate Treasurers, exploring the transformative potential of "Cash Against Data" in revolutionising trade finance for the manufacturing sector.
Trade in manufactured goods typically flows “point-to-point” and is typically financed more simply than trade in commodities. This paper sets out how digitalisation and trade financing can be safely delivered at scale using “Cash Against Data”. This enables mid-sized and larger corporates to support their suppliers around the world, particularly SMEs in emerging markets, reducing the cost and risk associated with international supply chains.
Key Highlights:
🔹 Addressing the $2.5 Trillion Trade Finance Gap: We estimate that over 90% of manufactured goods trade operates on open accounts, leaving SMEs, especially in emerging markets, underfinanced. "Cash Against Data" aims to bridge this gap by allowing suppliers to receive payments promptly at shipment via accessible and efficient trade financing.
🔹 Digitisation for Instant Approvals: Through self-digitisation, suppliers can transmit all essential documents as structured data directly to buyers. This streamlined process enables real-time invoice approval, allowing financiers to release supplier payments earlier, even at shipment.
🔹 Case Study Impact: A large UK fashion retailer using PrimaTrade’s platform transitioned 300 suppliers to a fully digital supply chain within 10 weeks, saving over 1% on their spend (equivalent to $1M per each $100M of goods purchased).
🔹 Compliance and ESG Gains: As many companies face increasing ESG requirements, digitising trade and compliance documents helps to deliver compliance at scale, linking supplier performance directly to payment. This reduces costs and enhances transparency, linking payments directly to correct documents.
"Cash Against Data" is the new benchmark for reliable, efficient, and accessible trade finance. Dive into our white paper to learn how this model can streamline your supply chain and drive profitability in today’s complex trade environment.
To read the white paper in full, visit: https://lnkd.in/evdGZM82
Tim NicolleChris SouthworthITFAThe Working Capital ForumGlobal Trade Review (GTR)Trade Finance Global (TFG)Make UKNick Davies
#DigitalTrade #TradeFinance #SupplyChainInnovation #CashAgainstData #ManufacturingFinance #SMEfinance #TradeDigitalisation #GlobalTrade #SupplyChainEfficiency