Supply Chain Risk Assessment

Strengthening Freight Financing Integrity: A Look into Vayana Trade Verification Service (TVS)

Fraudulent freight invoices have been a longstanding challenge for financial institutions, causing significant losses over the years. Dishonest transporters have exploited gaps in the system, generating counterfeit invoices that result in losses for financial institutions. Meanwhile, legitimate transporters face delays and working capital constraints due to the requirement for shipper acceptance before financing. This seemingly unending issue has now found a promising solution.

Vayana Trade Verification Service emerges as a tool to build integrity between lenders and borrowers. Its unique validation process hinges on the integration of e-way bill details linked to goods movement. This verification system is a powerful defense against fraud, by directly identifying counterfeit invoices and safeguarding the genuine players.

But how does this system work in practice? Let’s delve into the process.

The TVS relies on real-time checks using granular e-way bill data. The e-way bill, a crucial document for transporting goods valued over Rs. 50,000, contains vital information such as goods description, recipient, and transporter details. By analyzing this information, the TVS can promptly verify the authenticity of freight invoices.

This real-time validation eliminates the need for blind trust previously given to transporters. Financial institutions can now rest assured that their funds are directed only to legitimate transporters with verified invoices. As a result, invoice fraud, which has long affected the industry, is significantly reduced.

While its primary role is combating fraud, the TVS also fosters efficiency and improves the customer experience. By eliminating the need for shipper acceptance before financing, the system expedites the funding process, providing a lifeline to honest transporters in need of working capital. Partial financing can be disbursed almost instantly, offering essential cash flow without compromising any controls. Freed from the burdens of traditional, time-consuming verification processes, financial institutions can now enhance their service delivery, gaining a competitive edge.

Thus, Vayana Trade Verification Service revolutionizes the industry by providing a foolproof mechanism to validate freight invoices. By mitigating risks and easing working capital constraints for honest transporters, Vayana paves the way for a more transparent and efficient future.

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