{"id":22717,"date":"2019-08-06T13:57:53","date_gmt":"2019-08-06T08:27:53","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=22717"},"modified":"2019-09-05T18:07:49","modified_gmt":"2019-09-05T12:37:49","slug":"digital-trade-finance-platform-launched-by-modifi","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/digital-trade-finance-platform-launched-by-modifi\/","title":{"rendered":"Digital Trade Finance Platform Launched by MODIFI"},"content":{"rendered":"<p>European Fintech Technology &ldquo;<strong>MODIFI<\/strong>&rdquo; announced to launch Digital Export Finance in India. The motive behind the introduction of this platform is to allow <a href=\"https:\/\/enterslice.com\/msme-registration\"><strong>Small &amp; Medium Enterprises<\/strong><\/a> (SMEs) to thrive and offer convenient and attractive payment terms to its International Buyer. <\/p>\n\n\n\n<p><strong>MIDIFI<\/strong> in the year 2018, has introduced the digital trade financing platforms in Europe, is now interested to expand its operation in the areas of Asia, so accordingly decided to enter the Indian <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Market&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;A market is a structured environment, either physical or virtual, where buyers and sellers convene to trade goods and services. This trading hub operates based on the principles of supply and(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/market\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>Market<\/a>. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is the Scope of Digital Trade Finance in Indian Market?<\/h2>\n\n\n\n<p>The SMEs hold a major proportion of total export made by India. Total export stands at $292 billion of a financial year, out of that total proportion of 40% of this trade is made by SMEs. But there is a certain amount of difficulty in securing finance by these SMEs. <\/p>\n\n\n\n<p>The problem faced by SMEs is tedious paperwork, high rates of rejection and collateral requirement. As per the founder and CEO of <strong>MODIFI<\/strong>, the Current Indian environment has a favorable opportunity to welcome digital trade platforms.<\/p>\n\n\n\n<p> There is certainly high demand for this platform and lenders like <strong>MODIFI<\/strong> can meet this need of increased demand for digital trade financing platforms. With the introduction of the initiative of &ldquo;TReDS&rdquo; in the budget 2019, there is a widened scope of digital trade finance in India.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Indian Government&rsquo;s Initiative for Encouraging Digital Trade Financing <\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" loading=\"lazy\" width=\"626\" height=\"626\" src=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/08\/banking-isometric-icons-set_1284-17092.jpg\" alt=\"Digital Trade Finance\" class=\"wp-image-22742\" srcset=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/08\/banking-isometric-icons-set_1284-17092.jpg 626w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/08\/banking-isometric-icons-set_1284-17092-150x150.jpg 150w, https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/08\/banking-isometric-icons-set_1284-17092-300x300.jpg 300w\" sizes=\"(max-width: 626px) 100vw, 626px\"\/><\/figure><\/div>\n\n\n\n<p>The Government of India has taken many initiatives to promote digital infrastructure and digital payments platforms:<\/p>\n\n\n\n<ul><li>Fintech has not anymore confined itself to\ndigital products or services in the financial sector and banking segment. It\nhas stepped towards strategic areas in the financial including digital\npayments.<\/li><li>Finance Minister, Ms. Nirmala Sitharaman has\nprovided payment platforms for small businesses such as MSMEs, for filling of\nthe bills to waive off its delayed payments and solving all its cash flow\nproblems. <\/li><li>The government has continuously taken a step for\nenhancing rural infrastructure making it easier for MSMEs to increase their\ndigital footprints.<\/li><li>The government to boost up end-to-end payments\nfor MSMEs has also set up a single-window platform. <\/li><li>The government also introduced a new scheme for\neasy loans to MSMEs in just 59 minutes of application through online\napplication<\/li><li>Easy KYC norms of NRIs and by merging the\nportfolio route of NRIS with FPIs lead to access to investment by NRIs in\nIndia.<\/li><li>For\nthe business establishment with an annual turnover of INR 50 Crore or more,\nthere is an offer to avail low-cost digital payment such as BHIM-UPI, AAdhar\nPay, etc<\/li><\/ul>\n\n\n\n<h3><b>Also, Read:<\/b> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/enterslice.com\/learning\/world-small-medium-sized-enterprise-sme\/\">Changing World of Small and Medium-Sized Enterprise Lending<\/a><\/mark>.<\/h3>\n\n\n\n<h2 class=\"wp-block-heading\">Brief Description of TReDS<\/h2>\n\n\n\n<p>The Trade\nReceivables Discounting System is an online bill discounting platform for\nhelping cash-starved MSMEs to raise the funds by selling their cash receivables\nto corporate. It was introduced by RBI in the year 2014 with the motive to\nboost up the performance and operating of MSMEs without hurdles.<\/p>\n\n\n\n<p>One of the distinguishing features of <a href=\"https:\/\/en.wikipedia.org\/wiki\/TradeIndia\">TReDS<\/a> is that MSMEs, who are selling their receivable needs not to submit any collateral and in case of default there will be no recourse to them.<\/p>\n\n\n\n<p>TReDS ensure that there is a regular flow of operational funds too MSMEs at attractive rates. It also ensures that their working capital limit is not affected as they are &ldquo;off-balance sheet finance&rdquo;. It helps corporate to comply with the <a href=\"https:\/\/enterslice.com\/msme-registration\"><strong>MSMEs<\/strong><\/a> Act, which says that the buyer has to pay within 45 days of its purchase from MSMEs.<\/p>\n\n\n\n<p>In November 2018,\nPrime Minister Narendra Modi introduced compulsion to get registered on this\nTReDS platform for the Companies whose annual turnover exceeds INR 500 Crore.\nAlso, RBI has classified the bank&rsquo;s disbursement under the priority sector\nlending (PSL). <\/p>\n\n\n\n<p>TReDS gives equal business opportunity to all banks irrespective of their size. Banks can reach out to maximum customer information with the vast amount of data available now as compared to once no information available. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">MODIFI Expansions to India <\/h2>\n\n\n\n<p>With the initiatives for boost up of <strong>digital trade finance<\/strong> platforms in India by creating TReDS, and other digital trade finance for boosting trades in India. <\/p>\n\n\n\n<p><strong>MODIFI<\/strong> is a European Fintech Company that is setting up digital trade finance platforms in India. It&rsquo;s a platform meant to provide Small &amp; Medium Size exporters and offer attractive payment terms to their buyers. <strong>MODIFI<\/strong> started its global trade finance platform for SMEs in Europe in 2018, now in 2019 is stepping in India to further international expansion. <\/p>\n\n\n\n<p>MSMEs are committed to solving trade finance for thousands of underserved MSMEs. The partnership between MODIFi &amp; Winning Maersk will provide plenty of opportunities for cooperation beyond equity investment.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">FAQs<\/h2>\n\n\n\n<p><strong>What are the\nfinancial issues faced by MSMEs?<\/strong><\/p>\n\n\n\n<p>Around 30% of global trade is held by SMEs. Access to financial services is a worldwide problem &amp; around half oh <a href=\"https:\/\/enterslice.com\/msme-registration\"><strong>MSMEs<\/strong><\/a> face this problem. Half of the funding requirements of MSMEs are rejected by the banks. And 60% of those rejected trades collapse due to insufficient funds.<\/p>\n\n\n\n<p><strong>How MODIFI\nbenefits are connected with the TReDS platform?<\/strong><\/p>\n\n\n\n<p>As per Dr. Nelson Holzner, CEO of <strong>MODIFI<\/strong>, the digital payment trade services are great platforms for MSMEs in India. India in its budget had shown a commitment to encourage digital finance with the introduction of TReDS.<\/p>\n\n\n\n<p><strong>What is TReDS?<\/strong><\/p>\n\n\n\n<p>It&rsquo;s a program for\nreducing the digital bill for the SMEs supported by the government. It is\nexpected to allocate Rs 25,000 to Rs 30,000 Crore in FY 2019-2020. At present,\nthis scheme does not cater to exporters and only focuses on the domestic\nmarket.<\/p>\n\n\n\n<p><strong>What are the\nexpectations of MODIFI by the year 2020?<\/strong><\/p>\n\n\n\n<p><strong>MODIFI<\/strong> expects to invest a finance volume of $1 Billion in India by the year 2020. Though at present it focuses on creating awareness about this platform and benefits to MSMEs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>European Fintech Technology &ldquo;MODIFI&rdquo; announced to launch Digital Export Finance in India. The motive behind the introduction of this platform is to allow Small &amp; Medium Enterprises (SMEs) to thrive and offer convenient and attractive payment terms to its International Buyer. MIDIFI in the year 2018, has introduced the digital trade financing platforms in Europe, [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":22718,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[2638,2639],"acf":{"service_id":"220"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Digital Trade Finance Platform Launched by MODIFI - Enterslice<\/title>\n<meta name=\"description\" content=\"MODIFI to launched Digital Trade Finance in India, to allow SMEs to raise export finance credit in India easily.It was lauched in 2018.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/digital-trade-finance-platform-launched-by-modifi\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Digital Trade Finance Platform Launched by MODIFI - Enterslice\" \/>\n<meta property=\"og:description\" content=\"MODIFI to launched Digital Trade Finance in India, to allow SMEs to raise export finance credit in India easily.It was lauched in 2018.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/digital-trade-finance-platform-launched-by-modifi\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:author\" content=\"enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2019-08-06T08:27:53+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-09-05T12:37:49+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/08\/Digital-Trade-Finance-Platform.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Narendra Kumar","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/04\/nk-1.jpg","authorDescription":"Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.","postViews":496,"readingTime":4,"nextPost":{"id":22720,"slug":"gst-rate-cuts-on-electric-vehicles"},"prevPost":{"id":22712,"slug":"how-to-start-payment-gateway-in-india"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2019\/08\/Digital-Trade-Finance-Platform.jpg","postTerms":"Startup","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/22717"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=22717"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/22717\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/22718"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=22717"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=22717"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=22717"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}