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UNCTAD EXPERT MEETING e-finance for SMEs in developing countries

UNCTAD EXPERT MEETING e-finance for SMEs in developing countries. Geneva, 23 rd of October, 2001 Philippe RENNOTTE Director & Member of the Executive Committee Gerling Namur. Supported by the European Commission Affiliated to several consumers associations & governmental organisations.

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UNCTAD EXPERT MEETING e-finance for SMEs in developing countries

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  1. UNCTAD EXPERT MEETING e-finance for SMEs in developing countries Geneva, 23 rd of October, 2001 Philippe RENNOTTE Director & Member of the Executive Committee Gerling Namur

  2. Supported by the European Commission Affiliated to several consumers associations & governmental organisations

  3. The Trusted Shops solution E-Commerce Trust • Multi-lingual internet dispute resolution system • Customer Service Centre assists consumer = Internet dispute resolution + • Financial assessment, Privacy and reliability check, Technical check Insurance coverage + Seal of approval e-Tailer • Real-time money-back guarantee; protection against insolvency of onlineshop

  4. What’s for SMEs from developing countries ? E-tailer benefits Consumer benefits • Guidance through Seal of Approval • Money-back guaranteecoversnon-delivery + non-refund in case of contract withdrawal + credit card fraud • Automatic reminder after 30 days • Trusted Shops Customer Service Centre • Personal online guarantee account • All free of charge! • Improve customer confidence through Seal of Approval • Help online merchant to comply with internet best practices • Improve conversion rate - turn more online shoppers into online buyers • Improve consumer satisfaction through better service • Prevent disputes through mediation Increase turnover by 10% to 30%as per Trusted Shops affiliates Online shopping with peace of mind

  5. Despite the advantages of B2B commerce, participants (and mainly SMEs) are still hesitant to do online transactions Seller Buyer Marketplace • Can I trust my counterparty? • Payment on-time? • How do I finance? • What about the process costs of risk management? • How do I reach liquidity? • Additional revenue sources? • How to differentiate? • Will delivery be on time? • Quality of supplier and products high enough for long term relationship? Need for Security, trust and cost advantages

  6. TRUSTED TRADES‘s Online Credit Insurance creates security, trust and cost savings Product example n:m Trade Online credit insurance on public marketplaces Security & Trust B S • Realtime coverage • Fully integrated • Easy registration for participants MP B S Limit 100,000€ S B Electronical data transfer 1:n Trade Limit administration for private marketplaces Buyer Time Cost savings • Simplification of credit insurance process • Easy to implement • ERP integration as logical extension Automatical cover-age within the limit during the transaction MP

  7. The TRUSTED TRADE’s product range responds to the needs of electronic marketplaces Public marketplaces Product concept Product development Existing offers According to demand Online in 12/01 Onlinesince 10/00 • Escrow • E-Financing • Non Delivery Insurance • Marketplace specific Scoring-/Rating • Online credit insurance • TT status report • Collection Products Product partners

  8. Using the tools of Trusted Trade a company may even completely outsource its credit management Private marketplaces Buyer orders Buyer registers Buyer pays Set credit limit and cond‘s Receive payment Process payment (match with invoices) Register buyer Accept order (agianst credit cond‘s) Zahl- ungs- erhalt Verify authen-ticity (Web / PKI) Deliverorder Send invoice • • • Invoice becomes overdue Buyer defaults Continually Send written reminders Remind customer personally Com-mer-cial collec-tion Legal collec-tion Claim from credit insurer Monitor buyer and adapt limit • • •

  9. B2B on line debt protection service, tradecover is designed toward the open market of international trade exchanges and offers immediate coverage against the risk of non-payment,giving the companies the flexibility of determining the appropriate level of security they seek, according to the level of risk they anticipate. Similar to the normal practice of CREDIT LINES applications tradecoveroffers COVER LINES requirements OECD BUYER SELLER Tailor made contract designed from your workstation  Access to immediate sign-up (on line)  Instant cover in the framework of the contract

  10. THE PRINCIPLES Contract holder asks for : Global Cover Line (GCL) : total sum of the Individual Cover Limits he would like to cover   Maximum Liability (MXL) : maximum indemnity payable in respect of each contract period Contract holder receives following parameters : Total cost of tradecover contract : all comprehensive amount, payable in advance   Maximum & Minimum Individual Cover Line (max & min ICL) As soon as the contract is signed, the contract holder requests Individual Cover Lines

  11. TradeCoverContract Holder Limit application Supplier GERLING Answer Payment on default Assignment of Benefit of Trade Cover contract to the Bank Order Goods & Invoice Payment Funding Buyer Bank Payment on default if contract

  12. BANK TRADE COVER / GLOBAL BANK TRADE COVER TO HELP BANKS to offer a new service to their (SMEs) clients , i.e. : Buyer Risk Cover to finance their (SMEs) clients without risk, i.e. : The debts of the Bank’s clients are covered and, at the same time, these clients are protected from the possibility of bankruptcy due to some of their buyers defaulting. We have created 2 new types of Trade Cover contract specially designed for the Banks : BANK TRADE COVER GLOBAL BANK TRADE COVER Where the contract holder is now the Bank. If the Bank wishes, such subscription as a Bank to this special contract could even be confidential.

  13. BANK = CONTRACT HOLDER Contract n°1 Contract n°2 TRADER B TRADER A TRADER C Buyer 4 Buyer 5 Buyer 6 Buyer 1 Buyer 2 Buyer 3 Buyer 7 Buyer 8 Buyer 9 The Bank is obliged to subscribe 1 contract per Trader whom she wants to cover the Buyers. BANK TRADECOVER GLOBAL BANK TRADECOVER One singlecontract BANK = CONTRACT HOLDER TRADER A TRADER B TRADER C Buyer 1 Buyer 2 Buyer 3 Buyer 4 Buyer 5 Buyer 6 Buyer 7 Buyer 8 Buyer 9 The Bank is obliged to include all the Buyers in the Global Cover Line if she wants to be covered.

  14. eCredible offers a complete credit management solution, enhanced by the eCredible Payment GuaranteeTM Credit Checks Exposure Management Payment Guarantee System Links Dunning / Reminders Collections • Reimbursement on insolvency or 60 days after invoice due date • Automation of numerous manual tasks related to credit management • - new buyer requests • - limits • - reporting • - claims • Analysis of financial data • Check payment behaviour • Limit assignment • Automatic live limit adjustment across multiple sites / countries • Limit updates can be driven by buyer behaviour • Management reporting of exposures and overdues • (Co-) branding and tailoring of dunning messages • Flexible dunning schedules based on client • Multi channel & language dunning – fax letter, e-mail, SMS • Commercial collections using buyer preferred language • Collection process seamless with dunning process and client feedback

  15. How it works … eCredible Seller eCredible Buyer Goods & Invoice Order Payment Payment Data Order Info Approval Payment on default Invoice Data . Spending Limits Dunning & Collection

  16. Companies are looking to gain competitive advantage from their investments in automation and moving into eBusiness & eCommerce • Reducing cost of goods sold thanks to supply chain efficiencies • Increasing sales volume from selling to “new” buyers: • Cross-border • SMEs • End-users (i.e. direct instead of via distributors) • Cost savings from streamlining and integrating internal processes, or outsourcing these business processes altogether

  17. The eCredible solution is fully modular and can be tailored to customer requirements QuickCert Customer Certification eCredible Payment GuaranteeTM Automated Limit Management Dunning & Collections • Customer Authentication • (Online only) • Limit Assignment • Tailored Dunning Schedule • Collections by eCredible • Payments directly to • customer • Guarantee of Payment • Approved Invoices • Reimbursement on Default or Insolvency • Full Limit Maintenance • Automatic Limit Adjustment • Customer Driven Increases

  18. eCredible can also integrate with partners to offer a complete “A to Z” solution • QuickCert • Authentication • Verification • Encryption Invoicing Core Products Integrated Product Range • eCredible Payment • GuaranteeTM • Protracted default • Insolvency Payments Credit management Automated limit management Dunning & collection • Credit Management • Automated limit management • Dunning & collection  Financing 

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