There is no place where 400 mln micro, small and medium enterprises can meet every one another, commit trade agreements effortlessly and trustfully and get help with trade-related services in a savvy way.
Blockchain technology can be used to build a user’s platform which can add a module of trust into the B2B trade cycle while simplifying the execution of transactions and decreasing their costs. 2 ModulTrade has laid the foundations for creating a valuable ecosystem for global trade: a digital blockchain networked value structure that is real-time, global, connected, digital and cost-effective, with features to support further fintech solutions developed by third parties.
ModulTrade is a brilliant contract blockchain-based biological system where miniaturized scale, little and medium ventures can meet, submit and execute trade all around, effortlessly, trustfully and proficiently.
The opportunities for MSMEs in the global marketplace and value chains are enormous: it 9 exposes them to a large customer/buyer base, as well as opportunities to learn from large firms and from engaging and surviving in up and coming sectors of the global marketplace.
“The development of e-commerce promises to expand export opportunities for SMEs and give them a global presence that was once reserved for large multinational firms. “ – WORLD TRADE REPORT, Selling through digital channels productivity gains that the McKinsey Global Institute 10 (2013) has estimated at between 6 and 15 percent.
ModulTrade aim is to help micro; small and medium-enterprises succeed in the global-marketplace by facilitating such trade as described in this article.
Problem and Trust
Micro, small and medium enterprises confront numerous barriers and capacity constraints because of their moderately little size. Globally, it is evaluated that around 56% of micro, small and medium enterprise trade finance recommendations are rejected, contrasted with 7% for multinational corporations.
ModulTrade addresses the needs of micro, small and medium enterprises by eliminating the main barriers to entry into global trade:
- Lack of trust
- High entry costs
- Complexity of trade-related operations.
Lack of trust remains a significant problem for micro, small and medium enterprises and prevents them from being active players in the global trade network. The economic meaning of this trust issue could be summarized in the following question:
- Will the Buyer pay up on the Seller sends goods to the Buyer?
This question was answered by existing banking system which created Trade finance instruments, like Letters of Credit and Bank Guarantees.
Traditionally, the trade finance business has targeted exporters and importers of a certain size, with only mid-range to larger players being able to afford trade finance services.
- Increasing cost pressure
- Poor customer experience
The solution proposed by ModulTrade
ModulTrade aims to eliminate the main barriers to entry into global trade as well as:
- Bringing together a far-reaching scope of services for the full B2B trade cycle;
- Helping micro, small and medium enterprises meet, commit and execute trade globally effortlessly, in a trustful and effective way
ModulTrade’s Value Ecosystem
Leveraging on smart-contract blockchain-based technology, ModulTrade will build a value ecosystem for global trade, i.e. a digital networked value structure that is real-time, global, connected, digital and cost-effective, with features to support further fintech solutions developed by third parties. This solution will enable micro, small and medium enterprises to increase their revenues whilst reducing the costs of global trading.