E-Trade Finance as a competitiveness enhancement for SME's in developing countries Presentation to UNCTAD Geneva, 22-24 Oc...
Cost and need for credit are higher for companies in emerging markets <ul><li>poor information </li></ul><ul><li>high perc...
<ul><li>supplier credit (in intercompany trade) is the first source of funding for  </li></ul><ul><li>a significant number...
<ul><li>higher cost for import </li></ul><ul><li>lower value for export </li></ul><ul><li>financial constraints for compan...
<ul><li>more information available at lower cost, </li></ul><ul><li>more financial services available, </li></ul><ul><li>b...
Coface enhances the credit of companies in emerging markets, through ...    its expertise on companies in emerging market...
   Trade credit with SME's in emerging countries can be protected <ul><li>Coface has pending trade credit risk on  220,00...
   Trade Credit management expertise can be shared with institutions in emerging countries <ul><li>Coface shares its cred...
   The  Solution The  @rating credit opinion  on a company tells if one can extend trade credit to this company @rating P...
@rating solution is available on line <ul><li>Though 300+ @rating partners, in 80+ countries </li></ul><ul><li>And via cof...
<ul><li>It indicates  on line  to any interested party if one can safely extend trade  credit to a company and, if so, how...
Quality Label: the only way to certify its  creditworthiness  for an emerging market SME You are a company, you have a con...
Trade Finance on line : how it works @rating protection, single risk, 100%, on line,  without recourse, worldwide Coface C...
Some E-Commerce / E-Finance platforms with &quot;@rating inside&quot; used by SME s in emerging markets <ul><li>Trade Card...
Integrated Solution for factors - i.e. Bank SinoPac
Some projects under development <ul><li>Indian Eximbank Factoring JV </li></ul><ul><li>IFC Securitization of Trade Finance...
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  1. 1. E-Trade Finance as a competitiveness enhancement for SME's in developing countries Presentation to UNCTAD Geneva, 22-24 October 2001
  2. 2. Cost and need for credit are higher for companies in emerging markets <ul><li>poor information </li></ul><ul><li>high perceived risk </li></ul><ul><li>low credit management expertise in companies and banks </li></ul>
  3. 3. <ul><li>supplier credit (in intercompany trade) is the first source of funding for </li></ul><ul><li>a significant number of companies and countries </li></ul>This is true for trade credit
  4. 4. <ul><li>higher cost for import </li></ul><ul><li>lower value for export </li></ul><ul><li>financial constraints for companies and economies </li></ul>Consequences are very negative for companies in emerging markets and for their national economies
  5. 5. <ul><li>more information available at lower cost, </li></ul><ul><li>more financial services available, </li></ul><ul><li>but tomorrow … credit refusal can be “at a click”... </li></ul>Internet could make it better … or worse
  6. 6. Coface enhances the credit of companies in emerging markets, through ...  its expertise on companies in emerging markets  its tradition of shared expertise with institutions in emerging markets  its innovative Solution
  7. 7.  Trade credit with SME's in emerging countries can be protected <ul><li>Coface has pending trade credit risk on 220,000 companies in emerging markets, most of them SME's (out of a total of 2.2 million) </li></ul><ul><li>These covers represent $15 Bn turnover in emerging markets (out of a total of $150 Bn) </li></ul><ul><li>We have on line data on 1.2 million companies in emerging markets (out of 41 million in our database) </li></ul><ul><li>Our credo: there are good companies in every country </li></ul>
  8. 8.  Trade Credit management expertise can be shared with institutions in emerging countries <ul><li>Coface shares its credit system with partners in 47 countries, a majority being emerging countries </li></ul><ul><li>Among our partners: national eximbanks or national credit insurers of Algeria, Brazil, China, Czech Republic, Egypt, India, Kuwait, Morocco, Malaysia, Oman, Poland, Romania, Singapore, Thaïland, Tunisia … </li></ul><ul><li>All these institutions are linked through Internet to our &quot;Common Risk System&quot;, through a CreditAlliance </li></ul>
  9. 9.  The Solution The @rating credit opinion on a company tells if one can extend trade credit to this company @rating Protection covers the credit risk on a company, up to its @rating credit opinion level A company can certify its quality worldwide through the @rating Quality Label . <ul><li>Confidence in commercial partners </li></ul><ul><li>Easier access to credit </li></ul><ul><li>Enhanced credit worthiness </li></ul><ul><li>is the first insurable company rating, rating 41 million companies worldwide . It is the basis of 3 exclusive lines. </li></ul>
  10. 10. @rating solution is available on line <ul><li>Though 300+ @rating partners, in 80+ countries </li></ul><ul><li>And via cofacerating.com </li></ul>
  11. 11. <ul><li>It indicates on line to any interested party if one can safely extend trade credit to a company and, if so, how much : </li></ul><ul><ul><li>1@, 2@, 3@, 4@ for recommended outstandings of 20 K€, </li></ul></ul><ul><ul><li>50 K€, 100 K€ or more </li></ul></ul><ul><ul><li>or X if there is an element of weakness </li></ul></ul>What is the credit opinion?
  12. 12. Quality Label: the only way to certify its creditworthiness for an emerging market SME You are a company, you have a contact with a new partner, a prospective supplier or a customer; how can you tell him that you deserve credit in a quick , understandable , free and reliable way? Just by telling him, &quot;my company deserves the Quality Label, which you can check for free on cofacerating.com.”
  13. 13. Trade Finance on line : how it works @rating protection, single risk, 100%, on line, without recourse, worldwide Coface CUSTOMER Trade Finance on line BANK VENDOR Credit opinion
  14. 14. Some E-Commerce / E-Finance platforms with &quot;@rating inside&quot; used by SME s in emerging markets <ul><li>Trade Card, end to end foreign trade e-management (members in Hong Kong, Korea, Taiwan…) </li></ul><ul><li>Sino Pack, e-factoring (members in Saudi Arabia, Brazil, Romania…) </li></ul><ul><li>VFM (Fruits) or Go Trade Sea Food (Fish), e-market places (members in South Africa, Turkey, Hungary, Angola, Vietnam…) </li></ul>
  15. 15. Integrated Solution for factors - i.e. Bank SinoPac
  16. 16. Some projects under development <ul><li>Indian Eximbank Factoring JV </li></ul><ul><li>IFC Securitization of Trade Finance for emerging markets exporters </li></ul>
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