Innovation introduced in 2019
Institutions that have implemented the product/service: 9 Factoring companies, 2 banks, 8 companies
MSMEs served: Türkiye, Istanbul
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Challenges
The main objective of the Trade Chain Finance System is to enable SME’s to connect multiple financiers through a digital platform, thereby reducing their funding costs.
Primary target
Which group does your product/service primarily target?
Factoring
SMEs
Credit Guarantees
SMEs
Description of Innovation
Receivables finance products such as Supply Chain Finance, distributor finance, all traditional factoring products, and credit insurance services are provided by financial institutions and banks through the Trade Chain Finance Platform mainly to SME’s. Suppliers, buyers, banks, factoring companies, participation banks, credit insurance companies, and all types of financiers could be users of this platform.
TCFS is a set of technology-based business and financing processes that link the various parties in a transaction – the buyer, seller, financial institutions and banks– to lower financing costs of SM
TCFS is a set of technology-based business and financing processes that link the various parties in a transaction – the buyer, seller, financial institutions and banks– to lower financing costs of SM
Results
SMEs play an important role in economic and social development. Therefore, it is important to take steps to strengthen the vulnerable structures of SMEs. Continuity of cash flow is vital for them as they have difficulty in accessing finance, have a limited access to high technology and produce a limited amount of high value-added products and exports. The Trade Chain Finance System serves as an opportunity to overcome financial and technological obstacles of SMEs.