Account settlement and financing in an e-commerce environment

Abstract

A system, method and article of manufacture are provided for account settlement utilizing a network. First, a buyer is allowed to select from a group of options in order to settle an account utilizing a network. The options include settling a minimum balance, partially settling, settling a full balance, and applying for an import loan on payment due date. The selected option is then received utilizing the network. Finance interest may then be booked against the buyer for an unpaid portion of the account if the selected option includes either settling a minimum balance or partially settling. If the selected option includes settling a full balance, the account may be reconciled. On the other hand, if the selected option includes applying for an import loan on payment due date, an import loan may be booked and a credit line may be transferred to a trade loan line.

Claims

What is claimed is:

1. A method for account settlement utilizing a network, comprising the steps of:

(a) allowing a buyer to select from a group of options in order to settle an account utilizing a network, wherein the options include settling a minimum balance, partially settling, settling a full balance, and applying for an import loan on payment due date;

(b) receiving the selected option utilizing the network;

(c) booking finance interest against the buyer for an unpaid portion of the account if the selected option includes either settling a minimum balance or partially settling; and

(d) reconciling the account if the selected option includes settling a full balance.

2. A method as recited in claim 1, and further comprising the step of releasing ownership of goods to the buyer by transferring title thereto if the selected option includes either settling a minimum balance or partially settling.

3. A method as recited in claim 1, and further comprising the step of sending a consolidated card statement to the buyer utilizing the network.

4. A method as recited in claim 1, wherein the network includes a wide area network.

5. A method as recited in claim 1, and further comprising the step of interfacing with a third party who reconciles the account if the selected option includes settling a fill balance.

6. A method as recited in claim 1, and further comprising the step of booking an import loan and transferring a credit line to a trade loan line if the selected option includes applying for an import loan on payment due date.

7. A computer program containing code segments which when executed on a computer perform account settlement utilizing a network, the computer program embodied on a computer readable medium, the computer program comprising:

(a) a code segment for allowing a buyer to select from a group of options in order to settle an account utilizing a network, wherein the options include settling a minimum balance, partially settling, settling a fill balance, and applying for an import loan on payment due date;

(b) a code segment for receiving the selected option utilizing the network;

(c) a code segment for booking finance interest against the buyer for an unpaid portion of the account if the selected option includes either settling a minimum balance or partially settling; and

(d) a code segment for reconciling the account if the selected option includes settling a full balance.

8. A computer program as recited in claim 7, and further comprising a code segment for releasing ownership of goods to the buyer by transferring title thereto if the selected option includes either settling a minimum balance or partially settling.

9. A computer program as recited in claim 7, and further comprising a code segment for sending a consolidated card statement to the buyer utilizing the network.

10. A computer program as recited in claim 7, wherein the network includes a wide area network.

11. A computer program as recited in claim 7, and further comprising a code segment for interfacing with a third party who reconciles the account if the selected option includes settling a full balance.

12. A computer program as recited in claim 7, and further comprising a code segment for booking an import loan and transferring a credit line to a trade loan line if the selected option includes applying for an import loan on payment due date.

13. A system for account settlement utilizing a network, comprising:

(a) means for allowing a buyer to select from a group of options in order to settle an account utilizing a network, wherein the options include settling a minimum balance, partially settling, settling a full balance, and applying for an import loan on payment due date;

(b) means for receiving the selected option utilizing the network;

(c) means for booking finance interest against the buyer for an unpaid portion of the account if the selected option includes either settling a minimum balance or partially settling; and

(d) means for reconciling the account if the selected option includes settling a full balance.

14. A system as recited in claim 13, and further comprising means for releasing ownership of goods to the buyer by transferring title thereto if the selected option includes either settling a minimum balance or partially settling.

15. A system as recited in claim 13, and further comprising means for sending a consolidated card statement to the buyer utilizing the network.

16. A system as recited in claim 13, wherein the network includes a wide area network.

17. A system as recited in claim 13, and further comprising means for interfacing with a third party who reconciles the account if the selected option includes settling a full balance.

18. A system as recited in claim 13, and further comprising means for booking an import loan and transferring a credit line to a trade loan line if the selected option includes applying for an import loan on payment due date.

Description

FIELD OF THE INVENTION

The present invention relates to networked financial interfaces and more particularly to conducting trade finance business operations including account settlements.

BACKGROUND OF THE INVENTION

In international sales of goods, the buyer and seller may not know each other, or may not be familiar with the other's legal system. Thus, one of the major difficulties in international trade is to assure payment, particularly when the buyer or the seller is a small or medium sized business which expects difficulties in obtaining payment should a problem arise. Conventionally, a letter of credit is used in international trade to shift transaction risks to parties better able to manage these risks, specifically, to shift payment risks from unknown entities, such as a distant buyer, to known entities, such as a local bank.

A letter of credit (L/C) is usually an irrevocable undertaking by a bank to pay the beneficiary of the letter, for example, a seller of goods, specified sums of money when certain conditions are fulfilled, to be charged to the account of the person, for example, the buyer of the goods, who causes the bank to issue the letter of credit. Generally, after a buyer and seller have made an agreement for the sale of goods, the buyer instructs its bank to open an L/C in favor of the seller. The buyer's bank advises the seller's bank that an L/C has been opened in favor of the seller, and the seller's bank accepts the buyer's bank's guarantee to pay. The seller's bank advises the seller that an L/C has been opened in its favor, and the conditions which must be fulfilled for payment to occur. Usually, the seller's bank makes an irrevocable promise to pay the seller upon presentation of appropriate documents. The L/C document is considered an asset of the seller, and can be sold or assigned by the seller.

Documentation which the seller usually must present to obtain payment includes a bill of lading from its shipper, an invoice identifying the purchase, an appropriate insurance certificate, a certificate of inspection from an inspection firm confirming that the required goods are being shipped, export licenses and/or health inspection certificates, and certificates of origin used by customs personnel. After the correct documents are presented, the seller's bank pays the seller, then collects payment from the buyer's bank and delivers the presented documents to the buyer's bank. In turn, the buyer's bank obtains payment from the buyer.

Meanwhile, the shipper, via a carrier, transports the goods to the buyer's location. The carrier requires presentation of the bill of lading, which was delivered to the seller, before transferring possession of the goods to the buyer.

The buyer obtains the bill of lading from its bank after payment, and then the buyer and its broker arrange for presentation of the bill of lading to the carrier and delivery of the goods to the buyer's location. Often, the carrier delivers the goods to the buyer's broker at the customs entry point of the buyer's country.

During an international trade using a conventional letter of credit, the buyer and seller are assumed to be located in countries B and S, respectively. The issuing bank is a bank in country B which has agreed with the buyer to issue a letter of credit in favor of the seller. The paying bank is a bank in country S known to the seller which has guaranteed the letter of credit to the seller. The intermediary bank, which may be in country B, country S or a third country, is a bank trusted by both the issuing bank and the paying bank.

To begin, the buyer issues a purchase order based on an agreement previously concluded between the buyer and the seller. Then, the buyer approaches its chosen issuing bank and instructs the issuing bank to open a letter of credit in favor of the seller confirmed on its chosen paying bank. The letter of credit may be confirmed, unconfirmed or standby. In a standby letter of credit, if the transaction proceeds properly, the standby L/C expires, but if the transaction does not proceed properly, the damaged party draws on the standby L/C.

The issuing bank is assumed in this example to have no direct relationship with the paying bank, so the issuing bank approaches an intermediary bank which accepts the guarantee to pay of the issuing bank. The intermediary bank then approaches the paying bank, which accepts the guarantee to pay of the intermediary bank.

The paying bank then advises the seller that an L/C has been opened in its favor and that upon presentation of appropriate confirming documentation, including the Bill of Lading from a Shipper, the paying bank will pay the seller. In this scenario, that is, assuming a confirmed L/C, the paying bank must pay without recourse upon presentation of appropriate documentation. In other cases, the paying bank has recourse, that is, the paying bank passes the documentation to the issuing bank and obtains payment therefrom before paying the seller.

The seller finishes producing the goods and arranges for shipment with a shipper. Goods are passed to the shipper. The shipper transports the goods to a port of entry in the buyer's country.

Upon receipt of goods, the shipper provides the seller with a bill of lading. The seller presents the bill of lading and other confirming documentation to its paying bank in order to collect against the L/C. After verifying that the documentation is in order, the paying bank pays the seller.

The paying bank presents the documentation and its proof of payment to the intermediary bank, which pays the paying bank. The intermediary bank in turn presents the documentation and its proof of payment to the issuing bank, which pays the intermediary bank. The issuing bank then obtains payment from the buyer and gives the buyer the confirming documentation including the bill of lading.

The buyer gives its agent, such as a broker, the bill of lading and other necessary documentation. The buyer's agent obtains the goods from the shipper, clears the goods through customs in country B and arranges for delivery of the goods to the buyer. The international trade is now completed.

An L/C shields the seller from the risk of non-payment by the buyer and reduces the risk to the buyer that the buyer will pay for goods not received. With the L/C, the risk of non-payment is assumed substantially by the buyer's bank, which is assumed to be able to evaluate the risk of non-payment by the buyer. The seller's bank assumes the risk of non-payment by the buyer's bank, which the seller's bank is assumed to be able to evaluate. The banks require fees to compensate them for their risks and the expenses they incur in connection with the L/C. Typically the buyer's bank also requires that the buyer pledge collateral such as cash or marketable securities against the L/C or otherwise reduces its exposure in the event of non-payment by the buyer. These bank fees and requirements are a burden on trade, particularly on the buyer. Also, the delay involved in establishing an L/C for each transaction is a burden on trade.

Problems multiply because the L/C mechanism separates the transaction into substantially independent contracts, namely, the contract for the sale of goods from buyer to seller, the bill of lading, and the letter of credit.

One fertile source of difficulties for the seller is that its bank usually requires that all the documents called for in the L/C exactly correspond with the terms of the L/C, and withholds payment to the seller even due to typographical errors and minor misspellings. This has caused an enormous amount of frustration to sellers seeking payment.

Another problem is that the L/C holder can obtain payment with the correct documents, even if shipment has not actually occurred.

Yet another problem is that the L/C document itself has value, so there are expenses associated with its custody and in assuring that it is genuine.

A bank incurs roughly the same expenses in connection with an L/C, independent of the value of the goods to which the L/C pertains. The bank's fee is sometimes expressed as a percentage of the amount of the L/C, such as 1%. Assuming, for example, that the bank's expenses are $10,000, it will be appreciated that the bank is reluctant to open an L/C for transactions involving less than $1,000,000 of goods, as this business is not profitable for the bank. Thus, it is difficult for parties wishing to participate in international trade to use the L/C mechanism when the value of the goods involved in a transaction is small enough that the expense of an L/C becomes significant.

SUMMARY OF THE INVENTION

A system, method and article of manufacture are provided for account settlement utilizing a network. First, a buyer is allowed to select from a group of options in order to settle an account utilizing a network. The options include settling a minimum balance, partially settling, settling a full balance, and applying for an import loan on payment due date. The selected option is then received utilizing the network. Finance interest may then be booked against the buyer for an unpaid portion of the account if the selected option includes either settling a minimum balance or partially settling. If the selected option includes settling a full balance, the account may be reconciled. On the other hand, if the selected option includes applying for an import loan on payment due date, an import loan may be booked and a credit line may be transferred to a trade loan line.

In one embodiment of the present invention, ownership of goods may be released to the buyer by transferring title thereto if the selected option includes either settling a minimum balance or partially settling. As an option, a consolidated card statement may be sent to the buyer utilizing the network.

In another embodiment of the present invention, a third party who reconciles the account may be engaged if the selected option includes settling a full balance.

BRIEF DESCRIPTION OF THE DRAWINGS

The invention will be better understood when consideration is given to the following detailed description thereof. Such description makes reference to the annexed drawings wherein:

FIG. 1 is a general depiction of a VTrade environment based on Internet utilization;

FIG. 2 is a diagram of the trade platform over which buyer and seller processes take place in real time;

FIG. 3 illustrates several eCommerce capabilities of the VTrade system, including eInformation Convergence, eProcurement, eBilling and eInvoicing, and eAuctioning;

FIG. 4 is a schematic diagram of a hardware implementation of one embodiment of the present invention;

FIG. 5 illustrates a process for affording a virtual trade financial framework;

FIG. 6 illustrates a variation of the process of FIG. 5;

FIG. 7 illustrates operation of a virtual trade financial framework;

FIG. 8 depicts optional enhancements that may be offered and performed during operation of the virtual trade financial framework of FIG. 7;

FIG. 9 illustrates several areas which VTrade will fulfill in the eCommerce value chain;

FIG. 10 depict a process flow of the VTrade framework;

FIG. 11 illustrates a process for application of a line of credit and access to the VTrade system for a buyer;

FIG. 12 illustrates a process for application for access to the VTrade system by a seller/merchant;

FIG. 13 is a flowchart of a process for initiating bidding in a virtual trade financial environment;

FIG. 14 expands on the bidding process of the VTrade system discusses above with reference to FIG. 13;

FIG. 15 is a flowchart illustrating a process for initiating a transaction in a virtual trade financial framework;

FIG. 16 is a flow diagram which expands on the process of FIG. 15;

FIG. 17 is a flow diagram for initiation of a transaction between a buyer and seller using combined purchase order proforma invoice submission;

FIG. 18 illustrates a process for a payment transaction during a trade;

FIG. 19 illustrates a payment process when there is no disagreement on the terms of the documents;

FIG. 20 depicts a payment process when there is a disagreement on the terms of the documents;

FIG. 21 depicts a process for account settlement and/or financing for a buyer (importer) in the VTrade system;

FIG. 22 illustrates a payment process when a direct transfer of funds is available;

FIG. 23 is a flowchart illustrating a process for completing a purchase order/invoice;

FIGS. 24A and 24B illustrate a Purchase Order Performa Invoice (POPI);

FIG. 25 depicts a combined Purchase Order Performa Invoice;

FIG. 26 is a flowchart depicting a process for creating a finalized document relating to a transaction;

FIG. 27 illustrates the Main Menu Page of an electronic document checklist which may be used during the process of FIG. 26;

FIG. 28 is a flowchart illustrating a process for creating a financial transaction-related document;

FIG. 29 illustrates a Document Page of an electronic document creator;

FIG. 30 depicts an electronic Documents Checklist;

FIG. 31 illustrates a VTrade compliance engine;

FIG. 32 illustrates a first option of documentary compliance in a VTrade system;

FIG. 33 illustrates a second option of documentary compliance in which the Bank checks physical documents while VTrade checks electronic documents;

FIG. 34 illustrates a third option of documentary compliance in which the buyer checks physical documents while VTrade checks electronic documents;

FIG. 35 illustrates a general architecture of the VTrade system, including a buyer station, a seller station, a processing hub, and a credit provider system;

FIG. 36 illustrates an exemplary technical framework for a VTrade system;

FIG. 37 illustrates several potential security threats, including viruses, and internal attacks;

FIG. 38 illustrates security features which may be used with the technical framework of the VTrade system;

FIG. 39 illustrates several security principles and the services which provide them;

FIG. 40 illustrates an embodiment of the present invention in which VTrade operates under applicable Visa Card and international commerce rules, with an avenue for dispute resolution via the ICC international court for arbitration;

FIG. 41 illustrates a legal framework when the rules are set by the VTrade Enterprise;

FIG. 42 depicts the legal responsibilities of VTrade and the Bank;

FIG. 43 illustrates the legal responsibilities of the buyer and seller;

FIG. 44 shows a process for credit application and access;

FIG. 45 shows the continuation of the process for credit application and access of FIG. 44;

FIG. 46 depicts a process for initiation of bidding;

FIG. 47 illustrates a process for submission of a VTrade POPI;

FIG. 48 illustrates a continuation of the process for submission of a VTrade POPI of FIG. 47;

FIG. 49 depicts a process for negotiation and finalization of the POPI;

FIG. 50 illustrates a process for facilitation of document checking during payment;

FIG. 51 illustrates continuation of the process for facilitation of document checking during payment;

FIG. 52 illustrates a process for account billing and VTrade account management;

FIG. 53 depicts three basic forms that eMarketplaces can take to serve different market functions;

FIG. 54 illustrates how the three marketplaces of FIG. 53 may be brought together to create an eMarketplace;

FIG. 55 depicts a technical infrastructure of an eMarket;

FIG. 56 is a table setting forth descriptions of elements of the infrastructure including software/solutions, IT, fulfillment, and financial services/risk management;

FIG. 57 is a table setting forth a process to create solutions to specific needs during a buy and sell process;

FIG. 58 illustrates another embodiment of the process for creating solutions to specific needs during a buy and sell process;

FIG. 59 illustrates an embodiment of the present invention provides that offers an integrated package of eEnabled financial services products in one or more of the five categories;

FIG. 60 illustrates a TradeDirect system in accordance with one embodiment of the present invention;

FIG. 61 illustrates how TradeDirect may connect to outside firms to provide a wide breadth of services;

FIG. 62 depicts products/services that may be offered by one embodiment of the present invention;

FIG. 63 illustrates a process for affording credit rating and reporting utilizing a network;

FIG. 64 is a flowchart of a process for approving a line of credit of a buyer utilizing a network;

FIG. 65 is a flowchart illustrating a process for affording a settlement function utilizing a network;

FIG. 66 is a flowchart that illustrates a process for affording information services while facilitating a transaction between a buyer and a seller utilizing a network;

FIG. 67 is a flowchart depicting a process for contracting and fulfilling a business to business trade utilizing a network according to one embodiment of the present invention;

FIG. 68 illustrates a process for allowing buyers and sellers to gather information about each other;

FIG. 69 is a flowchart that depicts a process for a credit application process;

FIG. 70 illustrates a process for screening a buyer before credit is given to the buyer by a credit provider;

FIG. 71 depicts a process for allowing a company to guard against risk before entering into a trade by allowing purchase of a risk management product;

FIG. 72 is a flowchart illustrates a process for initiation of an agreement utilizing a network;

FIG. 73 illustrates a process for initiating a transaction which includes an ePayment;

FIG. 74 illustrates a process for order fulfillment utilizing a network;

FIG. 75 illustrates a process for a transaction in which a buyer sends an ePayment;

FIG. 76 is a flowchart of a process for performing a direct fund transfer utilizing a network;

FIG. 77 illustrates a process for open accounts information in accordance with an embodiment of the present invention;

FIG. 78 is a flowchart illustrating a process for account settlement utilizing a network;

FIG. 79 illustrates a process for financing or settling an account according to one embodiment of the present invention;

FIG. 80 illustrates a process for procuring information during the course of a transaction in accordance with an embodiment of the present invention;

FIG. 81 is an illustration the Integrated Development Environment Architecture (IDEA);

FIG. 82 is an illustration showing a Development Organization Framework in accordance with one embodiment of the present invention;

FIG. 83 is an illustration showing a security organization functional according to one embodiment of the present invention;

FIG. 84 is an illustration showing the responsibilities of an Environmental Management Team;

FIG. 85 is an illustration showing the responsibilities of an Application Team structure;

FIG. 86 is an illustration showing a model migration plan in accordance with one embodiment of the present invention;

FIG. 87 is an illustration showing a single release capability development pipeline in accordance with one embodiment of the present invention;

FIG. 88 is an illustration showing a multiple release capability development pipeline in accordance with one embodiment of the present invention;

FIG. 89 is an illustration showing a multiple release capability development pipeline with code base synchronization among three pipelines;

FIG. 90 is an illustrates showing a Development Tools Framework in accordance with one embodiment of the present invention;

FIG. 91 is an illustration showing information captured in the Repository and reused;

FIG. 92 is an illustration showing the Repository's central role in the development environment;

FIG. 93 is an illustration showing an Operational Architecture Framework in accordance with one embodiment of the present invention;

FIG. 94 illustrates an eCommerce Application Framework in a Development Architecture Framework;

FIG. 95 illustrates relationship between the eCommerce Application Framework, possible eCommerce Selling Models, enabling technology, and enabling eCommerce Software Packages;

FIG. 96 depicts the Relationship Management section of the eCommerce Application Framework in accordance with one embodiment of the present invention;

FIG. 97 illustrates a conceptual personalization architecture for implementing the Relationship Management section of the eCommerce Application Framework;

FIG. 98 illustrates a simple personalization process;

FIG. 99 is a graphical depiction of extents of personalization;

FIG. 100 illustrates a content catalog that can be used to manage an enterprise's content;

FIG. 101 illustrates an exemplary template with three Dynamic Content Areas (DCAc) embedded within the template in accordance with a method of associating a rule and content to an interaction;

FIG. 102 depicts a ShARE (Selection, Acquisition, Retention, and Extension) customer relationship model which addresses the changes in a shift to interactive marketing;

FIG. 103 illustrates a flowchart for a method for administrating an e-Commerce system on a network in accordance with an embodiment of the present invention;

FIGS. 104 illustrates components of the maintenance and administration portion of the of the eCommerce Application Framework in accordance with one embodiment of the present invention;

FIG. 105 illustrates the Order Processing portion of the eCommerce Application Framework of the present invention;

FIG. 106 illustrates a flowchart for a method for completing a transaction over a network in accordance with an embodiment of the present invention;

FIG. 107 depicts an example flow of business capabilities needed for complete order processing on an eCommerce implementation;

FIG. 108 illustrates a flowchart for a method for electronically serving a customer over a network in accordance with an embodiment of the present invention;

FIG. 109 illustrates key customer services of the Customer Services portion of the eCommerce Application Framework;

FIG. 110 illustrates the Security component of the eCommerce Application Framework in accordance with one embodiment of the present invention; and

FIG. 111 illustrates a flowchart for a method for ensuring security of an e-Commerce system on a network in accordance with an embodiment of the present invention.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

Virtual Trading (VTrade) is a "method" of conducting the trade finance business that achieves the same results as traditional trade finance through a new value proposition and a rethought process. In the VTrade operating model, physical documents are reduced. The number of parties involved are kept to the minimal. Three key components of VTrade model are:--VTrade Enterprise, Payment Network and a Bank. It should be noted that though "Bank" is used throughout this document, it is intended that the term include any type of credit provider.

VTrade Enterprise provides a one-stop trade finance service via the Internet. It is a highly efficient process excellence factory with full automation in handling credit application, payment, trade document submission and other critical processes. The Bank extends trade credit to the buyers and provides funding for the trade transaction.

The following are some of the features and benefits provided by the VTrade system.

Standardisation facilitation of integration of trading partners' business processes and systems

Business Process Integration integration of the eCommerce process with the back-office systems of the trading partners and users

Electronic medium infrastructure carrying digital information from one entity to the other

Security combination of technologies in order to create a secure and trusted environment

Trust trusted third-parties provide various elements of trust such as Registration and Certification Authority

Regulation and Legal Framework appropriate norms and regulations to create a suitable and stable frame of reference is required to stimulate electronic transactions

Navigation services that help users to be informed and guided towards the various services and trade partnersCommunities users interacting with one another will quickly transform their relationship to become a community, as buyers and sellers find themselves sharing common needs and/or business processes

Inexpensive Unlike other financial EDI business model, cost justification will not be an issue for VTrade with the roll-out of an inexpensive web-based application

Unique Payment Rules Introduces a unique hybrid of e-Commerce and Visa Card payment rules for quicker dispute resolution for the international trading communityTrade Facilitation Unleashes the power of trade facilitation to ensure that majority of trade transactions are settled using the electronic trade facilitation engine

Seamless Payment Introduces a seamless e-Payment capability throughout the trade finance value chain

International Trading Unlike other offerings, VTrade does not focus only on local or regional trade, but also on international trading, with a range of supporting facilitation services which will help Visa Members to develop a range of additional revenue sources from repeat business

Innovative Product Offerings Focuses on core Trade Finance business supported by other innovative product offerings developed exclusively for Visa Members. VTrade has treasury and cash management product capability built-inStrategic Partnership Improve business connectivity of companies through vast global network, riding on the reliable network of Visa and international banks

VTrade deals in the underlying goods that are financed while traditional Trade Finance deals with the documents associated with the goods which are financed. VTrade eliminates documents usually associated with international trade. It supports international trade in a similar fashion to the way credit card supports retail commercial transactions. VTrade is to international trade finance transactions as what ATMs are to the retail banking transactions. VTrade allows "Trade Finance" transactions to be carried out at substantially lower cost than traditional Trade Finance transactions

VTrade removes the inefficiencies in traditional Trade Finance business by eliminating the handling of documents which acted as surrogate to the actual goods traded. In traditional Trade Finance, documents were used as surrogate to facilitate the proximity of payment of a trade transaction to the event of taking delivery of goods. In VTrade, the process of processing the documents which are required under traditional Trade Finance is eliminated. Hence, VTrade is able to deliver the same results as traditional Trade Finance at a much lower cost.

The following table contrasts traditional trade finance and the VTrade environment.

    TABLE 1
    Trade Finance (Letters of Credit) VTrade
    Buyer and seller trade settlement Buyer and seller trade settlement
    through multiple intermediating through buyer's bank only
    banks                          Document checking performed by
    Heavily centered around documentary buyer, payment will be faster using
    checking by multiple banks which VTrade Rules. Discrepancies will
    slows down payment turnaround. be greatly reduced with trade
    80% of trade documents are     facilitation methods like electronic
    "discrepant" and average order POPI and Document Checklist
    to payment is around 9 months  Process more streamlined because
    Processes are cumbersome because POPI terms are simpler
    letters of credit are more     Cheaper because of
    sophisticated                  disintermediation and streamlined
    More expensive due to more parties processes
    involved (more than 2 banks) and Payment through Visanet, which is
    cumbersome processes           cheaper
    Payment is through SWIFT and other
    more expensive payment network

    TABLE 2
    Party                Roles
    Credit Provider      Market VTrade to organisation which large
                         importers
                         Provide credit financing
                         Guarantee importer's credit worthiness
                         Syndicate credit requirements
                         Negotiate exporters' receivables
                         Provide FX services
                         Syndicate VTrade to insurance and shipping
                         companies
                         Syndicate VTrade to other banks
    VTrade Enterprise    Establish the VTrade Processing HUB and
                         business capability
                         Provide a secured environment for
                         transacting
                         Operate the VTrade Processing HUB
                         Develop the necessary infrastructure to
                         support the VTrade Processing
                         Market solution to Credit Provider
                         Assist Credit Provider in the marketing
                         process to importer, exporter, insurance
                         companies, shipping companies and etc
                         Provide Support parties in VTrade
    Importer             Subcribe to VTrade and transact all
                         intermediated trade transaction through
                         VTrade
    Exporter             Subcribe to VTrade and transact all
                         intermediated trade transaction through
                         VTrade