Online marketplace LiquidX has rolled out a supply chain finance (SCF) solution on its platform, adding to its suite of trade finance, working capital and insurance offerings.
As part of the new solution, LiquidX will help its customers to structure supply chain finance programmes, handle supplier onboarding, and arrange funding, all within weeks.
Available through the LiquidX cloud-based web portal, the funder of the supply chain finance programme is a US alternative capital provider.
The technology behind the SCF solution is backed by a single legal agreement, thus enabling the network’s users to transact with multiple players on the platform via one legal framework instead of several agreements, which would otherwise be the case if using trade finance products located in different places.
With this new solution, LiquidX clients will be able to scale their supply chain finance programmes, something that remains a difficult task because of the complex nature of SCF. Andrew Chu, head of product at LiquidX explains to GTR that the new offering has a range of integration options, an interface that can be personalised, and an onboarding portal that is easy to use for customers’ suppliers.
Chu says why the team chose to add SCF onto the platform: “A supply chain finance solution was the logical progression for us in order to meet the full working capital needs of our clients.” He adds that by working with both corporate and bank clients to design the product, details could be fine-tuned.
The initial programme included a large US corporate with suppliers across the US, Mexico and Canada. The solution will soon be expanding into Europe and Asia. “The exact countries will be based on customer need, but we will have a fairly comprehensive coverage of both regions in the near future,” Chu adds.
After three senior appointments to its Singapore-based team in August 2019, GTR learns that LiquidX is continuing to expand its operations in Europe and Singapore to cater for growing customer demand.
The hiring spree follows LiquidX’s launch of a trade credit insurance digital marketplace in the US in April. The marketplace saw the company work with insurance broker Marsh and two underwriters, Euler Hermes and Atradius, to build the platform, which enables banks, non-bank investors and corporate suppliers to directly access the trade credit underwriting market for insurance.