Liquidity for companies during COVID-19.
Instant payment of suppliers provides improved liquidity for buyers and their suppliers.
Instant Payment works by providing an export company or subcontractor to an export company with credit available from a bank. The credit is guaranteed by an ECA (export credit agency). After receiving the credit, the company can pay its suppliers early without generating any liquidity issues. The company can, at the same time, draw on the credit. By paying suppliers quickly, companies get a longer payment deadline at the end of the day.
In a time of crisis like now, instant payment is a big help to all businesses. When liquidity is already stretched, it can be difficult to wait 30-90 days (for example) to get paid.
Illustration of how it works
Technology by Tradeshift
The Danish Fintech unicorn* Tradeshift is behind the technology of the instant Payment Guarantee.
Tradeshift was founded in 2010 by Mikkel Hippe Brun, Christian Lanng and Gert Sylvest. The Tradeshift platform helps companies digitize collaboration between suppliers and buyers. This is done through an open platform that can be connected to any ERP system.
* A unicorn is a privately owned business worth more than $ 1 billion.
Warranty from ECAs
ECAs (export credit agencies) generate growth by financing companies’ exports and internationalization.
Open platform – all banks can participate
To reach as many Danish companies as possible, the Instant Payment platform is open to all banks.