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In international trade, letters of credit are an attractive choice for sales to new customers to securely receive payment for goods. However, letters of credit are an expensive and administratively cumbersome method of trade financing. Moreover, for smaller trade volumes, banks often reject the letter of credit request due to too low profitability or too poor creditworthiness of the buyer.
Alternatively, a trade credit insurance can be used. However, especially for new customers, this can put a considerable strain on the free credit limit of their credit insurance. Rising insurance premiums and exhausted credit lines before the end of the insurance year are often the result and prevent further growth with new customers or into new markets.
Increase sales and revenue and save time with Cargodian.Trade’s innovative trade solution.
Save Up to 70% in Cost*
Save Up to 80% in Time*
* compared to conventional letters of credit
Schedule a meeting with our team to understand how your business can benefit from partnering with Cargodian.
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Cargodian is the Guardian who protects the interests of both trading partners. Cargodian gives back control to exporters and importers over their trade business. They decide for themselves again, not their bank or credit insurance.
Learn more about how global trade with Cargodian is made simple, fast, and secure in just 5 steps.
Entering global trade brings new challenges: compliance checks, embargoes and sanctions, foreign currency risks, trade credit and default risks. Cargodian solves these challenges and makes global trade easy.
Cargodian combines several important components of global trade that previously had to be considered independently of each other:
Money laundering, terrorist financing and corruption are combated globally. Countries and international organizations impose sanctions and embargoes on countries, individuals and companies or monitor exports and imports of certain types of goods. Companies are required to identify the trading partner and any Ultimate Beneficial Owners (UBO) and check against existing sanctions and embargoes. Cargodian performs this screening for both trading partners, the types of goods and the countries involved.
In international trade, buyers and sellers often do not know and trust each other.
The buyer does not want to pay in advance and the seller does not want to deliver the goods without collateral. Conventionally, letters of credit (L/C), supply chain finance products (SCF) and credit insurance are used to minimize risk.
These products often disadvantage one of the two trading partners and shift risk to third parties, often with immense administrative time and cost.
Cargodian offers a new, innovative solution and enters a mercantile trade as an intermediary, securing the interests of both trading partners.
49% of SME’s letter of credit requests are rejected by banks today for various reasons. Credit insurance for exports is expensive and places high demands on the creditworthiness of the buyer. Often there is a stalemate between buyer and seller: prepayment or, for lack of alternatives, no deal is struck.
Cargodian eliminates the need for letters of credit and also provides increased payment security for the seller and delivery security and quality control for the buyer.
Financing of purchasing, production, warehousing and the supply chain to the customer causes direct and indirect total capital costs of approx. 7%. The faster, more flexible and fairer payments and deliveries are made, the lower these costs turn out to be.
Cargodian secures the interests of both trading partners through event-based, guaranteed and automatic payments based on delivery progress and contract compliance. Partial payments reduce risk and capital financing requirements for both buyer and seller.
Global trade is familiar with the costs of currency exchange or currency hedging transactions in addition to the costs of risk hedging or financing. Over the often long timespan of an international trade transaction, the risks due to exchange rate fluctuations for foreign currencies and the costs for currency hedging transactions are considerable.
At Cargodian, trading partners trade in their currency of choice. Payments are made in the payment currency individually chosen by the buyer and seller.
By using this form, you agree with the storage and the handling of your data by this website in accordance with our privacy policy.
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By using this form, you agree with the storage and the handling of your data by this website in accordance with our privacy policy.
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Schedule a meeting with our team to understand how your business can benefit from partnering with Cargodian.
By using this form, you agree with the storage and the handling of your data by this website in accordance with our privacy policy.
We’ll walk you through the Cargodian portal and answer any questions you have.
By using this form, you agree with the storage and the handling of your data by this website in accordance with our privacy policy.