Trade Finance Add-on

Trade-Finance-1

(BL – Bill of Lading; INV – Invoice)

What is Trade Finance Add-on?

Trade finance means secured transactions managed by banks and institutions. It also allows companies to take short term loan against the trades to optimise their working capital. Winspire has developed an in- depth add-on so that users can take care of the main processes involved in trade finance.

Letter of Credit (LC) is a good example of a secured transaction.

Here, the seller and the carrier release goods to the buyer only after the banks have verified the documents. In its simplest form, the issuing bank will release documents to buyer after getting funds from the buyer. Or it may be more complex where buyer may pay supplier after a few months and this credit will be guaranteed by the bank.

Why Trade Finance Add-on?

For accounts / treasury users, it is vital to know about the limits available with various banks, agreement with bank about various charges, upcoming payments to be made either to the supplier or banks etc.

The Winspire Trade Finance add-on enables this within Business central with below features:

  • Define various bank facilities for trade finance.
  • Define and keep track of trade finance limits for facilities given by banks.
  • Specify applicable (agreed) charges for various bank facilities for reference.
  • Create and track import (purchase related) and export (sales related) documents for trade financing.
  • Enter accounting entries related to loans, settlements, payments, and bank charges for the documents.
  • Manage forex contracts for hedging / paper trades.

This image explains the main components of this Add-on

(LC – Letter of Credit; TR – Trust Receipts; BD – Bill Discounting;AP – Accounts Payable; AR – Accounts Receivable)

To know more, please get in touch with us.

We will be happy to show you a demo of the add-on and how it makes it easy for the users to track their trade finance transactions.