M1 NXT provides flexible, innovative non-factoring products to support your international business. Enhance liquidity and manage risks across the trade lifecycle.
Buyer's Credit is a short-term loan facility extended by a financial institution (the lender) to an importer (buyer) for goods imported from an overseas exporter. This credit is typically arranged through a bank in the exporter's country and is used to pay the exporter immediately. The importer then repays the loan to the lender on deferred terms, effectively extending their payable period
Benefits
Export Bill Discounting is a trade finance solution where an exporter sells their international trade bills (e.g., bills of exchange, promissory notes) to a financial institution at a discount. This provides the exporter with immediate liquidity against their overseas receivables, without having to wait for the maturity date of the bill. The financial institution then takes on the responsibility of collecting payment from the importer's bank
Benefits
LC Discounting involves an exporter selling their receivables under an Export Letter of Credit (LC) to a financial institution at a discounted rate. An LC is a secure payment mechanism, and discounting it allows the exporter to receive immediate payment upon presentation of compliant documents, even before the issuing bank makes the payment at maturity. This essentially converts a future, guaranteed payment into instant cash.
Benefits
Import Financing refers to various financial facilities designed to assist importers in purchasing goods from overseas. This can cover a range of solutions that provide working capital for the import cycle, from the time of placing an order, through shipment, to the final sale of goods. It helps manage cash flow gaps, ensures timely payments to suppliers, and optimises the importer's inventory and sales cycles.
Benefits
Difficulty in optimising liquidity when dealing with large import volumes or long payment cycles, impacting operational efficiency (Import Financing)
Challenges in securing competitive foreign currency loans (like Buyer’s Credit) for international purchases, leading to higher costs or limited supplier choices
Need to make immediate payments to overseas suppliers, tying up working capital and limiting negotiation power for extended credit terms
Exposure to commercial or political risks in overseas markets before payment is received on export documents (Export Bill Discounting, LC Discounting)
While secure, managing and getting early payment against LCs can be a manual, time-consuming process (LC Discounting)
Long waiting periods for payment on international sales after shipment, impacting cash flow and hindering business growth (Export Bill Discounting)
Evaluating and managing specific risks associated with different international trade instruments across diverse geographies
The complex, document-heavy nature of traditional trade finance often leads to high manual processing costs and delays
Identifying and accessing a diverse pipeline of creditworthy Buyer’s Credit, Export Bill Discounting, LC Discounting, and Import Financing opportunities
M1 NXT provides a cutting-edge digital platform that simplifies and accelerates access to a diverse range of non-factoring trade finance solutions. Our innovative features are designed to benefit all participants in the global trade ecosystem:
Operating as an IFSCA-regulated ITFS platform, we ensure unparalleled security, compliance, and trustworthiness for every non-factoring transaction, providing peace of mind for all parties.
Our unique marketplace model connects businesses with a wide pool of financial institutions offering various non-factoring solutions, fostering competitive terms and tailored funding for your specific needs.
Experience a fully digital onboarding and transaction management process for products like Buyer’s Credit, LC Discounting, and Import Financing. This significantly reduces paperwork, accelerates approvals, and enhances operational efficiency.
Gain clear visibility into the status of your non-factoring transactions. Our platform ensures transparency throughout the process, giving you greater control and insight into your trade finance activities.
M1 NXT's platform offers specialised non-factoring solutions like Buyer's Credit, Export Bill Discounting, LC Discounting, and Import Financing that are directly tied to specific trade transactions. Unlike general bank loans, these are often structured to integrate seamlessly into your trade cycle, leveraging the underlying trade documents and providing more tailored, often more flexible, and competitive financing for international commerce.
Absolutely. M1 NXT's non-factoring product portfolio is designed to support both sides of the international trade equation. For importers, solutions like Buyer's Credit and Import Financing help manage payables and cash flow. For exporters, Export Bill Discounting and LC Discounting provide immediate liquidity against international receivables.
M1 NXT acts as a digital marketplace platform that connects businesses like yours with a diverse network of financiers offering these non-factoring solutions. We streamline the application, documentation, and transaction processes, leveraging technology to make securing Buyer's Credit, Export Bill Discounting, LC Discounting, and Import Financing efficient and transparent.
Yes, M1 NXT's platform is designed to be accessible to a wide range of businesses, including SMEs engaged in international trade. Our digital-first approach and competitive marketplace model aim to democratise access to these sophisticated trade finance instruments, making them viable and efficient for businesses of various sizes.
