The Problem is trust. Or rather the lack of trust. In global trade seller and buyer very often don’t know each other and don’t trust each other. Hence global trade payments are done step-by-step, an event-based action-by-counteraction with payment terms agreed to each action step (letter of credit). Letter of credit is globally dominated by trade banks. The underlying process is highly complex, mostly paper-based, slow, expensive and comes with many hurdles like availability of currencies.
Consequently, many trades just cannot be executed
Up to 45% of SME trade finance proposals are rejected.
Letters of credit are complex, often non-digital, administration-intensive, time-consuming and involve high costs for both buyer and seller. Communication is usually not direct and several banks may be involved.
Our platform brings buyers and sellers together directly and enables direct communication. Based on a pre-agreed action and counter-action plan, we guarantee the agreed payment terms between buyer and seller.
Cargodian Trade is thus comparable to a documentary letter of credit (L/C).
The current problem and our simplification of the process is shown in the video.
We are a Fintech company. We conceptualize and develop ourselves, in-house. We apply a web-based platform to facilitate the trade between buyer and seller (no APP needed, just enter the data on a web browser). For the immutable documentation, we apply state-of-the-art blockchain technology. Based on actions and decisions by buyer and seller, our platform technology instructs payments to the banks inline with the pre-agreed payment terms.
Especially small trades are often rejected because banks are not interested. An Asian Development Bank (ADB) research in 2019 shows up to 45% of SME trade finance proposals are rejected by banks, compared to 39% for mid to larger sized firms and 17% for multinational corporations.
We guarantee you high planning reliability and cost transparency. Calculate your trade costs now! With our Cargodian pricing tool you can enter your trade data and you will get your costs with one click.
Our solution is a SAAS, absolutely transparent, secure and cost-efficient. Cargodian will become the trusted single point of contact for global traders. Our innovative technology makes blockchain easy accessible for all businesses.