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HOW
BLOCKCHAIN
CAN RESHAPE
TRADE FINANCE
Charity donation program
01
04
02
03
05
06
PAIN
POINTS OF
TODAY’S
PROCESSES
Manual contract
creation
Delayed timeline
Invoice factoring
Delayed payment
Trade financing, where financial
institutions provide credit facilities in
order to guarantee exchange of goods,
is a centuries old industry that hasn’t
seen much change with the growth of
global trade flows. In 2015 alone, the
trade finance market was measured at
more than $10 trillion USD
Multiple versions of the truth
Duplicative bills of lading
RE-IMAGINE
THE TRADE
Simplyfi's simple solutions
Simplyfi has re-imagined how
trade finance can operate by
leveraging a Blockchain-based
infrastructure to drive
efficiencies, reduce the cost
base and open up new revenue
opportunities, like newer
models of credit and funding
guarantees backing the trade.
Upon purchase, the agreement of sale between the importer and exporter
is shared with import bank using a Smart Contract on the Blockchain.
FUTURE STATE VISION
In real-time, the import bank will have capability to review purchase agreement,
draft terms of credit and submit obligation to pay to export bank.
Goods will be inspected by 3rd parties and the customs agent in the exporting
country - with all providing their respective digital signature of approval on the
Blockchain smart contract
After receiving the obligations, the exporter will digitally sign Blockchain-
equivalent letter of credit within the smart contract to initiate shipment
Export bank will review the provided payment obligation and once approved, a
Smart Contract will be generated on the Blockchain to cover terms & conditions
and lock-in obligations
During transit, goods will be transported from Country A to Country B
Upon delivery, importer will digitally acknowledge receipt of goods and trigger
payment
Using provided acknowledgement, Blockchain will automate payment from
importer to exporter via a Smart Contract
CONTACT
US
We are here to
help
inof@simplyfi.tech
www.simplyfi.tech

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How Blockchain Can Reshape Trade Finance.pdf

  • 2. 01 04 02 03 05 06 PAIN POINTS OF TODAY’S PROCESSES Manual contract creation Delayed timeline Invoice factoring Delayed payment Trade financing, where financial institutions provide credit facilities in order to guarantee exchange of goods, is a centuries old industry that hasn’t seen much change with the growth of global trade flows. In 2015 alone, the trade finance market was measured at more than $10 trillion USD Multiple versions of the truth Duplicative bills of lading
  • 3. RE-IMAGINE THE TRADE Simplyfi's simple solutions Simplyfi has re-imagined how trade finance can operate by leveraging a Blockchain-based infrastructure to drive efficiencies, reduce the cost base and open up new revenue opportunities, like newer models of credit and funding guarantees backing the trade.
  • 4. Upon purchase, the agreement of sale between the importer and exporter is shared with import bank using a Smart Contract on the Blockchain. FUTURE STATE VISION In real-time, the import bank will have capability to review purchase agreement, draft terms of credit and submit obligation to pay to export bank. Goods will be inspected by 3rd parties and the customs agent in the exporting country - with all providing their respective digital signature of approval on the Blockchain smart contract After receiving the obligations, the exporter will digitally sign Blockchain- equivalent letter of credit within the smart contract to initiate shipment Export bank will review the provided payment obligation and once approved, a Smart Contract will be generated on the Blockchain to cover terms & conditions and lock-in obligations During transit, goods will be transported from Country A to Country B Upon delivery, importer will digitally acknowledge receipt of goods and trigger payment Using provided acknowledgement, Blockchain will automate payment from importer to exporter via a Smart Contract
  • 5. CONTACT US We are here to help inof@simplyfi.tech www.simplyfi.tech