Linklogis, a leading supply chain finance technology solutions provider, has commenced an ongoing collaboration with Trade Information Network (‘Network’) by joining as a financier on the Network. The partnership will greatly enhance Linklogis’s purchase order financing capabilities.
Established in 2019 by ANZ, BNP Paribas, Citi, Deutsche Bank, HSBC and Standard Chartered, Trade Information Network is a data registry enabling the exchange of original trade information between buyers, suppliers and financiers internationally. Its aim is to serve as a vital tool in addressing the global trade finance gap, which the Asian Development Bank estimates at US$1.5 trillion, an issue that acutely affects businesses in emerging markets.
Harnessing artificial intelligence (AI) and blockchain, Linklogis specialises in providing technology for supply chain finance. Founded in 2016 with backing from Tencent, Linklogis raised US$1.02 billion in its 2021 Hong Kong initial public offering, from investors including BlackRock, EDBI (the investment arm of Singapore’s Economic Development Board) and Fidelity.
With a strong presence in China and a recently opened Singapore office, Linklogis focuses on servicing anchor enterprises, financial institutions, and SMEs in Asia. One of the supply chain financings Linklogis currently facilitates is conducted at the invoice stage. In invoice financing, a business borrows money against amounts due on invoices that have been issued to customers after goods or services have been supplied.
By partnering with the Network, Linklogis intends to increase its capability to finance at the purchase order (PO) stage. Purchase order finance (or PO finance) provides advance funding for businesses to pay suppliers before goods or services are supplied and an invoice issued.
Traditionally, gaining stakeholder approvals and setting rates for PO finance has been a time-consuming, labor-intensive and generally complicated task. By utilising AI to process the data available via the Network, Linklogis aims to streamline the process, vastly increasing the speed and volume of PO finance it can offer.
Asked why Trade Information Network has chosen to collaborate with Linklogis, the Network’s CEO, Sudhir Dole, said: “Trade Information Network was keen to work with institutions with a strong footprint in China. Linklogis has built an enviable track record in the Chinese market in a very short time. So, they were a logical choice for us to collaborate with, in order to ensure the increased flow of credit to Chinese suppliers.”
Mr. Dole added: “Trade Information Network is an inclusive platform founded by the world’s leading trade banks for the benefit of the entire financial community. By working closely with institutions like Linklogis, we believe we can have a significant impact on making global supply chains more resilient and sustainable. We welcome banks and fintechs to join us in this journey.”
Linklogis Founder, Chairman, and CEO Charles Song said: “With unparalleled on-boarding, customer service and funding capability in China, Linklogis is uniquely positioned to provide timely PO financing services to Chinese suppliers, leveraging the reliable and instantly accessible data provided by Trade Information Network. Founded by the largest and most significant banks in trade finance, Trade Information Network possesses unquestionable authority, unrivalled capabilities, and a model no other fintech can emulate. We are delighted to be a key partner in Asia.”
Originally published at Finextra