MUMBAI: To make overseas exports easier for Indian companies, especially SMEs, Denmark-based AP Moller - Maersk, one of the largest container shipping companies globally, has set up a new business vertical, Maersk Trade Finance.
In a nutshell, Maersk Trade Finance is a digital platform with pre-shipment and post shipment credit facilities. It enables exporters – manufacturers or traders – to not only get the cargo shipping services online but also apply for funds that can be used either to pay for the shipment or to invest in new orders.
India is a Pilot Country for such services, followed by Singapore, the Netherlands, Spain, the US and the UAE. The funds are provided to Indian exporters in foreign currency as, being a foreign entity in India, Maersk cannot lend in rupees. It cannot finance imports either. In future, the company may consider applying for a banking licence, provided there are no alternate ways to expand the trade finance services in India.