UNCTAD EXPERT MEETINGUNCTAD EXPERT MEETING

e-finance for SMEs in developing countriese-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

• Financial assessment, Privacy and reliability check, Technical check

Seal of approval e-Tailer

E-Commerce Trust

• Real-time money-back guarantee; protection against insolvency of online shop

Insurance coverage

+

• Multi-lingual internet dispute resolution system• Customer Service Centre assists consumer

Internet dispute resolution

+

=

The Trusted Shops solution

What’s for SMEs from developing countries ?

• 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

Consumer benefitsE-tailer benefits

• Guidance through Seal of Approval

• Money-back guaranteecovers non-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!

Online shopping with peace of mind

Increase turnover by 10% to 30%

as per Trusted Shops affiliates

Buyer

• Will delivery be on time?

• Quality of supplier and products high enough for long term relationship?

Seller

• Can I trust my counterparty?

• Payment on-time?

• How do I finance?

• What about the process costs of risk management?

Marketplace

• How do I reach liquidity?

• Additional revenue sources?

• How to differentiate?

Need for Security, trust and cost advantages

Despite the advantages of B2B commerce, participants (and mainly SMEs) are still hesitant to do online

transactions

Limit 100,000€

Time

Buyer

Electronical data transfer

n:m Trade

1:n Trade

B

B

B

S

S

S

MP

MP

Online credit insurance on public marketplaces

Limit administration for private marketplaces

• Realtime coverage

• Fully integrated

• Easy registration for participants

Automatical cover-age within

the limitduring the transaction

Security & Trust

Cost saving

s

• Simplification of credit insurance process

• Easy to implement

• ERP integration as logical extension

Product exampleTRUSTED TRADES‘s Online Credit Insurance creates security, trust and cost savings

Existing offers

Online credit insurance

TT status report

Collection

Product development

Marketplace specific Scoring-/Rating

Product concept

Escrow

E-Financing

Non Delivery Insurance

Online in 12/01

According to demand

Onlinesince 10/00

Products

Product partners

The TRUSTED TRADE’s product range responds to the needs of electronic marketplaces

Public marketplaces

Com-mer-cial collec-tion

Send invoice

Deliverorder

Accept order

(agianst credit

cond‘s)

Set credit limit and

cond‘s

Register buyer

Invoice becomes overdue

Buyer orders

Process payment (match

with invoices)

Zahl- ungs- erhalt

Buyer paysBuyer registers

Buyer defaults Continually

Verify authen-

ticity (Web /

PKI)

Receive payment

Claim from credit insurer

Monitor buyer and adapt limit

Send written

reminders

Remind customer personally

Legal collec-tion

• • •

• • •

Using the tools of Trusted Trade a company may even completely outsource its credit management Private marketplaces

OECD BUYER SELLER

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.

Tailor made contract designed from your workstation

Access to immediate sign-up (on line)

Instant cover in the framework of the contract

Similar to the normal practice of

CREDIT LINES applications

tradecover offers

COVER LINES requirements

THE PRINCIPLES

Contract holder asks for :

Global Cover Line (GCL) : total sum of the Individual Cover Limits he would like to cover

As soon as the contract is signed, the contract holder requests Individual Cover Lines

Contract holder receives following parameters :

Total cost of tradecover contract : all comprehensive amount, payable in

advance Maximum & Minimum Individual Cover Line (max & min ICL)

Maximum Liability (MXL) : maximum indemnity payable in respect of each contract period

TradeCoverContract Holder

Supplier

Bank

Buyer

Payment on default if contract

Payment on default

Limit applicatio

n

Goods & InvoicePayment

Order

Funding

Assignment of Benefit

of Trade Cover contract

to the Bank

GERLING

Answer

BANK TRADE COVER / GLOBAL BANK TRADE COVER

If the Bank wishes, such subscription as a Bank to this special contract could even be confidential.

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.

BANK = CONTRACT HOLDER

TRADER B

Buyer 4 Buyer 5 Buyer 6

The Bank is obliged to subscribe 1 contract per Trader whom she wants to cover the Buyers.

TRADER C

Contract n°2

Buyer 7 Buyer 8 Buyer 9

Contract n°1

TRADER A

Buyer 1 Buyer 2 Buyer 3

The Bank is obliged to include all the Buyers in the Global Cover Line if she wants to be covered.

BANK TRADECOVER

TRADER A TRADER B TRADER C

BANK = CONTRACT HOLDER

Buyer 1 Buyer 2 Buyer 3 Buyer 4 Buyer 5 Buyer 6 Buyer 7 Buyer 8 Buyer 9

GLOBAL BANK TRADECOVER

One single contract

• Automation of numerous manual tasks related to credit management

• - new buyer requests

• - limits• - reporting• - claims

System Links

• Automatic live limit adjustment across multiple sites / countries

• Limit updates can be driven by buyer behaviour

• Management reporting of exposures and overdues

ExposureManagement

• (Co-) branding and tailoring of dunning messages

• Flexible dunning schedules based on client

• Multi channel & language dunning – fax letter, e-mail, SMS

Dunning /Reminders

Credit Checks

• Analysis of financial data

• Check payment behaviour

• Limit assignment

• Commercial collections using buyer preferred language

• Collection process seamless with dunning process and client feedback

CollectionsPaymentGuarantee

• Reimbursement on insolvency or 60 days after invoice due date

eCredible offers a complete credit management solution, enhanced by the eCredible Payment GuaranteeTM

.

SpendingLimits

Order

OrderInfo

PaymentData

Payment

Dunning & Collection

InvoiceData

Goods & InvoiceeCredible Buyer

How it works …

eCredible Seller

ApprovalPaymenton default

• 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

Companies are looking to gain competitive advantage from their investments in automation

and moving into eBusiness & eCommerce

The eCredible solution is fully modular and can be tailored to customer requirements

Dunning & Collections

• Tailored Dunning Schedule

• Collections by eCredible

• Payments directly to customer

QuickCert Customer

Certification

• Customer Authentication (Online only)

• Limit Assignment

eCredible Payment

GuaranteeTM

• Guarantee of Payment

• Approved Invoices

• Reimbursement on Default or Insolvency

Automated Limit

Management

• Full Limit Maintenance

• Automatic Limit Adjustment

• Customer Driven Increases

IntegratedProduct Range

IntegratedProduct Range

Invoicing

Financing

Payments

eCredible can also integrate with partners to offer a complete “A to Z” solution

QuickCert•Authentication•Verification •Encryption

eCredible Payment GuaranteeTM • Protracted default• Insolvency

Credit Management • Automated limit

management• Dunning & collection

Core Products

Core Products

Credit management Automated limit management Dunning & collection