The following core participants, including but not limited to, in an international trade transaction, would be onboarded and registered on the platform: buyers, suppliers, financiers, import and export factors, and insurance companies.

Participants will have to provide KYC documents and related information to the platform as per the KYC guidelines set by IFSCA. After KYC checks on the platform and the execution of master agreements, the participants will be registered and formally onboarded on the platform.

The participants are to be formally onboarded or registered before they can transact on the platform. Once the registered exporter uploads the invoices for bidding, the terms of the invoice will be sent for buyer acceptance. On buyer acceptance, the financiers will bid for the invoices. The supplier will review and accept the bid on the basis of which the financier will release the funding amount (a predetermined percentage of the invoice value) to the working capital bank of the exporter and advise the platform. The platform will record the same. On the due date, the payment will be made by the buyer to the financier and import factor, and the same will be outside the scope of the platform, as advised by the regulator, IFSCA. The transaction will be closed thereafter. Please note that the flow of funds, both the disbursals and the payments, will be through the existing settlement mechanism per existing guidelines, and the platform will not have control over the settlement process.

In export factoring without recourse transactions, financiers will underwrite payment and credit risk on the buyer, i.e., protection against bad debt of the buyer will be provided, which only covers the insolvency and credit risk of the buyer. Exporter retains complete responsibility for all performance and commercial obligations under the sales contract, and hence all performance-related risks, including but not limited to commercial disputes, fraud or wilful misrepresentation, etc., will remain on supplier’s account.

It offers a streamlined and simplified digital approach for working capital financing at competitive rates, as well as the provision of no-recourse and non-collateral-based financing; off-balance-sheet financing includes one-time documentation; numerous ties with multiple funders and partners; risk protection; the option to extend payment terms for buyers; receivables converted to cash upon shipment; and another source of finance.

It enables savings on procurement and finance costs, not borrowing, the digital platform and journey, and lower transaction and administration costs.

It grants the opportunity to increase business (either fund-based or non-fund-based) and reach new bank customers, reduce operational costs while improving reach to build clientele, ease of operation with minimal documentation, and platform assistance in KYC/AML checks on customers and at the transaction level.

Eligible export receivables under a valid sales contract of goods and/or services would qualify for bidding and factoring on the platform. The underlying nature of goods and services should be permissible for trade as per the participants’ respective regulatory guidelines, frameworks, and provisions.

One-time: KYC and Master Agreements at time of onboarding and registration

Transactional: Specific trade-related documents like invoices, B/Ls, packing lists, and certificates of origin are to be digitally uploaded

Per existing regulatory guidelines, the flow of funds, including both disbursals and repayments, will be through the existing settlement mechanism and outside the platform.

Yes, the importer will digitally accept the invoice trade terms on the platform.

At the time of uploading invoices, suppliers will be able to view credit limits and appetite available per supplier-buyer combination.

The M1 NXT platform is only a facilitator and market place for financiers, suppliers, and buyers. The financiers undertake the necessary due diligence and underwrite the risks on the borrower, supplier, or buyer depending upon the nature of the facilities

Number of invoice(s) wise/trade financing unit wise bidding takes place on the platform.

Since we are an entity based out of Gift City, IFSC, documents executed with us do not need to be stamped. Further, the platform provides options of electronic authentication, electronic signature, and digital signature to execute the documents on the platform.