Future of Finance
Remote Controlled Money
Remote Controlled Money is the infrastructure used for embedding payments into any supply chain workflow on the Tradeshift platform.
Remote Controlled Money (RCM) creates dynamic payment instructions in a programmable way depending on the specific use scenario. In the backend Tradeshift runs different payment vehicle alternatives onto which the payment can be executed. No direct access to banking UI is required, it is all handled remotely via the Tradeshift account user interface.
Extended use cases for RCM are many. For example taking the CO2 intensity of goods sold into consideration: If the CO2 intensity is high then the price is also high, if the CO2 intensity is low then the price is also low. In this case price refers to the price of finance (discount rates or basis points). The CO2 intensity could also be used to calculate the offsetting required to neutralize the footprint—and thus it visualises the extra cost of high CO2 intensive products.
Use cases for Remote Controlled Money
Open the doors to green funding with Tradeshift Green Financing. On the invoice level we display the carbon intensity and/or Environmental, Social and Governance metrics to automatically provide access to green financing. When the set thresholds are met access to green financing opportunities are presented.
These metrics will bring up front the enterprise’s scope 3 reporting (as outlined in the Greenhouse Gas Protocol) and into real time reporting, as a support for the company’s sustainability agenda, thus incentivizing the company’s supply chain sustainability transformation.
Deep Tier Financing
Tradeshift Deep Tier Financing is creating a new perception on how to provide positive cash flow into your supply chain. As a preferred no. 1 or tier 1 supplier you might already today benefit from your close relationship to your large “brand name” customer/buyer, and receive early payment or other invoiced based financing.
Imagine to be able to extend this financial upside to your own suppliers – thus pushing an improved cash flow further up the chain of vendors creating a resilient and cohesive supply chain to the mutual benefit of all.
Physical borders don’t constitute the same complications to commerce between networked companies on Tradeshift’s virtual borderless commerce platform.
Tradeshift Networked FX (Foreign Exchange) leverage the huge and global business ecosystem that runs on top of the Tradeshift network. From a cross border commerce point of view, networked companies on the Tradeshift platform are able to hedge their FX needs by netting future currency needs against each other peer-to-peer.