Vayana for MSMEs

Cross-border trade finance empowering MSMEs to ride the global supply chain shifts

M/SME exporters across the globe often find themselves grappling with unforeseen challenges that can significantly impact their financial stability. Let’s delve into a real world scenario to understand the impact Vayana TradeXchange (VTX) can have on an M/SME exporter’s working capital when it comes to cross-border trade.

The Unpredictability of Business Dynamics

Consider an M/SME exporter in India with a consistent client base that, for years, adhered to an upfront payment model for goods. The exporter, accustomed to this reliable arrangement, thrived on the predictability and the cash flow it provided. However, the business landscape is inherently unpredictable. The unforeseen occurs when the trusted client undergoes acquisition by a larger corporation, leading to a shift in the payment terms. The once standard upfront payments are replaced by an extended credit period, stretching the working capital, and creating an instant financial bottleneck for the M/SME exporter.

Navigating the Financial Maze

When things suddenly change for small businesses that export goods, they realize the need for more disciplined financial management. This is especially true when it comes to managing their money in a way that keeps their business running smoothly. The working capital cycle is like a big loop that shows how a company handles its short term money matters from what it owns and owes to keep things running well. The challenge here is not just about dealing with immediate money needs, it’s also about making sure that each step in the working capital cycle runs smoothly. The usual ways of getting money, like asset backed loans, might not be quick or flexible enough for the fast paced nature of business. Financial solutions need to be customized to the business needs, ensuring they survive and thrive in the dynamic environment.

Vayana TradeXchange (VTX), a smarter alternative for cross-border trade finance:

Vayana TradeXchange not only fortifies the financial resilience of small businesses but also presents a smarter alternative. This platform empowers them to access liquidity by factoring invoices for shipped goods to the buyer or client, facilitating early payment. Early payment solutions of VTX ensure that payment terms don’t result in disruptions to cashflow, offering a seamless solution for meeting the working capital requirements of the M/SME exporter. This support can play a crucial role in maintaining uninterrupted business operations.

Why opt for Vayana TradeXchange ?

1. Early Payments Facilitation: VTX facilitates early payments, allowing the M/SME exporter to receive funds swiftly.

2. Seamless Digital Process: The platform’s seamless digital process eliminates paperwork, expediting the disbursement of funds and optimizing overall credit costs for the M/SME exporter.

3. Diversified Financier Pool: The platform connects the exporter to a diversified pool of financiers globally, ensuring a competitive environment that results in optimal interest rates.

4. Transparent Bidding Mechanism: VTX employs a transparent bidding mechanism, allowing financiers to compete for the opportunity to provide funds, ensuring the exporter secures the most favourable terms.

5. Risk Mitigation: By providing funds without recourse to the exporter, VTX minimizes the risk associated with delayed/nonpayment, offering financial stability and confidence in uncertain times.

6. One-time Agreement: The exporter signs a one-time agreement with VTX and doesn’t need to enter into individual agreements with the financiers.

In essence, Vayana TradeXchange is a regulated cross-border trade financing platform that enables early payments through a simpler and transparent process. Rates are discovered through a transparent bidding mechanism, and the funds are disbursed without the need of collateral and recourse. This unique approach not only tackles the immediate financial challenges encountered by M/SME exporters but also equips them with the tools needed to navigate the risks of cross-border trade.

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