Maersk ventures into trade finance

AP Moller - Maersk has set up Maersk Trade Finance - a digital platform with pre-shipment and post shipment credit facilities to enable exporters – manufacturers or traders – to not only get the cargo shipping services online but also apply for funds that can be used either to pay for the shipment or to invest in new orders.

India, Singapore, Netherlands, Spain, US and UAE are the pilot countries.

“The goods shipped is the only thing we mandate, which serves as collateral. We do not ask for any other collateral or security, helping the SMEs to avoid the collateral trap,” said Sardana, CEO, Maersk Trade Finance.

The shortage of trade finance across businesses is cited as one of the main obstacles in the global commerce. Risks related to import-export operations compel lenders to raise the barriers for borrowers, making access to funds difficult for SMEs.

(Hindu Businessline)