Linklogis, a leading provider of supply chain finance technology solutions, has entered into an ongoing collaboration with the Trade Information Network (“Network”) by joining as a financier on the network.
This partnership will significantly strengthen Linklogis’ purchase order financing capabilities.
Created 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 on an international scale. Its aim is to serve as a critical tool to bridge the global trade finance gap, which the Asian Development Bank estimates at US$1.5 trillion, a problem acutely affecting businesses in emerging markets.
Harnessing artificial intelligence (AI) and blockchain, Linklogis specializes in providing technologies for supply chain finance. Founded in 2016 with backing from Tencent, Linklogis raised $1.02 billion in its Hong Kong IPO in 2021, from investors including BlackRock, EDBI (the investment arm of the Economic Development Council of Singapore) and Fidelity.
With a strong presence in China and a recently opened office in Singapore, Linklogis is focused on serving anchor companies, financial institutions and SMEs in Asia. One of the supply chain financings that Linklogis currently facilitates is done at the invoicing stage. In invoice financing, a business borrows money against amounts owed on invoices that have been issued to customers after the goods or services have been provided.
By partnering with the Network, Linklogis intends to increase its financing capacity at the purchase order (PO) stage. Purchase order financing (or purchase order financing) provides advance financing to businesses to pay suppliers before goods or services are delivered and an invoice is issued.
Traditionally, obtaining stakeholder approvals and setting prices for purchase order funding has been a time-consuming, labor-intensive, and generally complicated task. By using AI to process the data available through the network, Linklogis aims to streamline the process, dramatically increasing the speed and volume of purchase order financing it can offer.
Asked why Trade Information Network chose to collaborate with Linklogis, the network’s CEO, Sudhir Dole, said: “Trade Information Network wanted to work with institutions with a strong presence in China. Linklogis has built an enviable track record in the Chinese market in a very short time. It was therefore a logical choice for us to collaborate with them, in order to ensure the increase in the flow of credit to Chinese suppliers.
Mr. Dole added, “Trade Information Network is an inclusive platform founded by the world’s leading commercial banks for the benefit of the entire financial community. By working closely with institutions such as Linklogis, we believe we can have a significant impact in making global supply chains more resilient and sustainable. We invite banks and fintechs to join us on this journey. »
Linklogis Founder, Chairman and CEO Charles Song said, “With unmatched integration, customer service and financing capability in China, Linklogis is uniquely positioned to provide timely purchase order financing services. to Chinese suppliers, leveraging the reliable and instantly accessible data provided by Trade. Information network. Founded by the biggest and most important trade finance banks, Trade Information Network has unquestionable authority, unparalleled capabilities and a model that no other fintech can emulate. We are delighted to be a key partner in Asia.