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Geneva, 22-24 October 2001
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E-Trade Finance as a competitiveness E-Trade Finance as a competitiveness enhancement for SME's in developing enhancement for SME's in developing
countriescountriesPresentation to UNCTADPresentation to UNCTAD
Geneva, 22-24 October 2001Geneva, 22-24 October 2001
Geneva, 22-24 October 2001
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Cost and need for credit are higher for Cost and need for credit are higher for companies in emerging marketscompanies in emerging markets
poor information
high perceived risk
low credit management expertise in companies and banks
Geneva, 22-24 October 2001
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supplier credit (in intercompany trade) is the first source of funding for
a significant number of companies and countries
This is true for trade creditThis is true for trade credit
Geneva, 22-24 October 2001
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higher cost for import
lower value for export
financial constraints for companies and economies
Consequences are very negative for Consequences are very negative for companies in emerging markets and for companies in emerging markets and for their national economiestheir national economies
Geneva, 22-24 October 2001
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more information available at lower cost,
more financial services available,
but tomorrow … credit refusal can be “at a click”...
Internet could make it betterInternet could make it better……or worseor worse
Geneva, 22-24 October 2001
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Coface enhances the credit of companies Coface enhances the credit of companies in emerging markets, through ...in emerging markets, through ...
its expertise on companies in emerging markets
its tradition of shared expertise with institutions in emerging markets
its innovative Solution
Geneva, 22-24 October 2001
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Trade credit with SME's in emerging Trade credit with SME's in emerging countries can be protectedcountries can be protected
Coface has pending trade credit risk on 220,000 companies in emerging markets, most of them SME's (out of a total of 2.2 million)
These covers represent $15 Bn turnover in emerging markets (out of a total of $150 Bn)
We have on line data on 1.2 million companies in emerging markets (out of 41 million in our database)
Our credo: there are good companies in every country
Geneva, 22-24 October 2001
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Trade Credit management expertise Trade Credit management expertise can be shared with institutions in can be shared with institutions in emerging countriesemerging countries Coface shares its credit system with partners in 47 countries, a
majority being emerging countries
Among our partners: national eximbanks or national credit insurers of
Algeria, Brazil, China, Czech Republic, Egypt, India, Kuwait, Morocco,
Malaysia, Oman, Poland, Romania, Singapore, Thaïland, Tunisia …
All these institutions are linked through Internet to our "Common Risk
System", through a CreditAlliance
Geneva, 22-24 October 2001
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The SolutionThe Solution
The @rating credit opinion@rating credit opinion on a company tells
if one can extend trade credit to this company
@rating Protection@rating Protection covers the credit risk on a
company, up to its @rating credit opinion level
A company can certify its quality worldwide
through the @rating Quality Label@rating Quality Label.
Confidence in commercial partners
Easier access to credit
Enhanced credit worthiness
is the first insurable company rating, rating 41 million companies worldwide. It is the basis of 3 exclusive lines.
Geneva, 22-24 October 2001
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@rating solution is available on line@rating solution is available on line
Though 300+ @rating partners, in 80+ countries
And via cofacerating.com
Geneva, 22-24 October 2001
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What is the What is the credit opinion? credit opinion?
It indicates on line to any interested party if one can safely extend trade credit to a company and, if so, how much :
1@, 2@, 3@, 4@ for recommended outstandings of 20 K€,
50 K€, 100 K€ or more
or X if there is an element of weakness
Geneva, 22-24 October 2001
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Quality Label: the only way to Quality Label: the only way to
certify its certify its creditworthinesscreditworthiness for an emerging for an emerging
market SMEmarket SME
You are a company, you have a contact with a new partner, a
prospective supplier or a customer; how can you tell him that you
deserve credit in a quick, understandable, free and reliable way? Just by
telling him, "my company deserves the Quality Label, which
you can check for free on cofacerating.com.”
Geneva, 22-24 October 2001
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Trade Finance on line : how it Trade Finance on line : how it worksworks
@rating protection,
single risk,
100%, on line,
without recourse, worldwide
Coface
CUSTOMER
Trade Finance on line
BANK
VENDOR
Credit opinion
Geneva, 22-24 October 2001
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Some E-Commerce / E-Finance platforms Some E-Commerce / E-Finance platforms with "@rating inside" used by SME s in with "@rating inside" used by SME s in emerging marketsemerging markets
Trade Card, end to end foreign trade e-management (members in Hong Kong, Korea, Taiwan…)
Sino Pack, e-factoring (members in Saudi Arabia, Brazil, Romania…)
VFM (Fruits) or Go Trade Sea Food (Fish), e-market places (members in South Africa, Turkey, Hungary, Angola, Vietnam…)
Geneva, 22-24 October 2001
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Integrated Solution for factors - i.e. Bank Integrated Solution for factors - i.e. Bank SinoPacSinoPac
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Some projects under developmentSome projects under development
Indian Eximbank Factoring JV
IFC Securitization of Trade Finance for emerging markets exporters