WorqCompany, which supports entrepreneurs and provides services to those who can easily establish their new business and seek reliable business support, has implemented the 'Instant Trade Finance' project that will facilitate the access of micro and small e-commerce businesses to finance. Stating that they will support e-commerce businesses that want to expand their business with this system but have financial difficulties in supplying products, WorqCompany Co-Founder Cem Baytok said that their target with Instant Trade Finance is a transaction volume of 100 million dollars. Baytok explained the details on the subject.
Our priority is e-commerce businesses
If you are into commerce, if you have a business or e-commerce store, you always need new products. You know that the new products you will buy will greatly contribute to the growth of your business volume, but you cannot supply products because your conditions are not suitable. Traditional financial institutions also decide whether or not to work with you based on your current financial strength, not the sales potential of your product and business. With a new and profit-sharing approach, WorqCompany finances the purchase of products to be sold at the most favorable terms and on a relatively large scale. We believe that the "Instant Trade Finance" system will lead the way in this area. In this system, our priority is businesses that engage in e-commerce or sell their products or services over e-platforms. With 'Instant Trade Finance', e-commerce businesses gain an advantage that will increase their sales capacity several profits with a commercial shopping method adjusted in accordance with payment terms, sales terms of their products and stock turnover rate.
How does the process work?
After the application we received on the WorqCompany website, the products are made with the support of the WorqCompany smart technologies of the company. If our analysis is positive, the applicant company sends us proforma invoices from its suppliers regarding the products it wants to purchase or promises to purchase. On the basis of those proforma invoices, we purchase these products from the supplier indicated by our business partner with a cash price and give them to our business partner for sale with a suitable term repayment plan. Our business partner pays us the forward product price after selling these products on their digital platforms or e-marketplaces. While planning the maturity, we look at how quickly the person or business can sell this product from the accounting records, how quickly they receive orders from the marketplace, and we create a business plan in line with this. By monitoring the sales performance of the products, we increase the financing we provide as success is achieved.
Our priority is for the seller to earn more than us
In this system, we actually establish a business partnership. For example; If the company applying to us can sell 10 units of the product it wants to supply with its own capacity, but becomes able to sell 40 units through us, it is possible to earn 10 TL over 100 units instead of earning 40 TL from these 400 units of product. If we can create such a profit together, we get our share at reasonable rates. But our first rule in the share section here is that the seller makes more money than we do. Our second rule is to get a return in line with the risk we take.
It is more advantageous to be a member of the WorqCompany platform
Since our risk is naturally higher in a business partnership with a business we do not know, our demands are also higher. But when the business becomes a customer of the WorqCompany platform and our mutual cooperation increases, we are also increasing our financing. The commercial relationship we establish with our customers, where we can see their financial activities within the WorqCompany platform, report properly within our own system, and access their financial data and commercial performance transparently, is much safer. As our risk decreases, our expectation of winning rate is correspondingly lower.
'Instant Trade Finance' is a first in its field in the market
We do not make any transactions with the logic of a factoring company over the receivables realized in the "Instant Trade Finance" system. On the contrary, we provide financing for the supply of the product you plan to sell, by sharing the risk, over an unrealized receivable that we have not yet sold. With these features, we are the first product in the market.
We have new projects for e-export
“Instant Trade Finance” offers different advantages for both buyers and suppliers. In terms of buyers; While it offers the advantage of fast procurement, efficient working capital management, uninterrupted communication with strategic suppliers and planning opportunities in accordance with the sales speed, it provides the opportunity for suppliers to be included in the supplier network, to sell goods in cash, to reduce the risks of the buyer, and to increase the product capacity. We can also apply the same system for e-export businesses. We can even enter into business partnerships that lead to the stocking of products in warehouses in the USA, England or Europe. New ones will be added to our existing packages for export very soon.
Our goal is to reach a transaction volume of 5 million dollars in 100 years
In our "Instant Trade Finance" system, the pilot application has been going on for the last 4 months. Insiders collaborated on increasing amounts and the model was successfully executed. With our launch, we expect 250-300 businesses to benefit from this system in the first place. We think that this number will increase to 1000 by the end of the year and we are making our preparations accordingly. We think that over 30 thousand businesses will benefit from the system in a few years. In the first stage, we allocated a source of 1 million dollars for these transactions. We will increase this resource to over 10 million dollars in a short time.”
Applications are via the WorqCompany website
To apply for “Instant Trade Financing”, it is sufficient to fill out the form in the relevant field on WorqCompany's website.
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