3.2. Prompt Pay Assurance
Prompt Pay Assurance is targeted at sellers (exporters) who have established a significant level of trust within the Coimex import-export community. Here are the conditions for the exporter to be able to apply for this service:
Must be an active member of Coimex for at least 1 year
Must have completed at least three transactions within the Coimex community
Must be at the SCALE membership level in Coimex
Example Scenario
Let’s consider an Indian rice supplier who is a long-standing member of Coimex and has a proven track record of successful transactions. This Indian seller wants to engage in a trade with a rice buyer in Kenya, where the payment terms are demanding, such as 100% payment upon arrival of goods or open account terms.
Using the Prompt Pay Assurance, as soon as the Indian seller loads the rice to the ship and uploads the necessary export documents to the blockchain (even before the goods reach the buyer), Coimex "promptly" pays the seller the whole amount.
Immediate Payment upon Document Upload: This system allows trusted sellers to receive payment immediately after uploading the required trade documents, without waiting for the physical delivery of goods.
Commission Structure: A commission, potentially ranging from 5–10% of the transaction value, is charged for this service. This fee reflects the additional risk Coimex undertakes by advancing payment.
Eligibility Criteria: To qualify for this service, sellers must meet stringent criteria, including a solid history of transactions and a high membership status within Coimex.
Benefits for Sellers: This service is particularly beneficial for trades with challenging payment terms. It allows sellers to receive payments promptly, thereby improving their cash flow and reducing financial stress.
Financing Aspect: Questions about financing the advance payments, setting limits on the number of transactions, and additional requirements for buyers (such as membership level or deposit requirements) would need to be addressed.
Customizable and Flexible: The Prompt Pay Assurance can cater to various trade scenarios, adaptable to different types of goods and transaction sizes.
The Prompt Pay Assurance represents a significant step forward in Coimex's efforts to innovate in international trade. By providing immediate financial support to trusted sellers, Coimex aims to enhance the efficiency and reliability of import-export transactions within its community.
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