One of the most high profile of online transaction management and financial settlement systems that claim to offer an alternative to the letters of credit in international trade is continuing to bolster its Asian position.

Tradecard Inc. has recently announced a partnership agreement with Universal EC Inc. (UEC), a Taiwan-based provider of integrated business-to-business application software and electronic commerce solutions. Meanwhile a Taiwan TradeCard member bank has demonstrated its ability to complete a cross-border financing transaction through the Tradecard system.

Online benefits

UEC says it will offer TradeCard's financial supply chain platform to traders in Taiwan, starting with its own customer base of companies in the high-tech manufacturing sector.

TradeCard hopes to benefit from exposure to UEC's customer base and the Taipei-based company's 17 years of experience in business IT and Internet services in Taiwan and China. The supposed benefit for Taiwan's traders is that they will be able to conduct trade transactions online, from purchase order to payment, and also, for the first time, gain access to automated customs clearance services.

Cross-border financing

First Commercial Bank, one of the three major banks in Taiwan that has signed an agreement with TradeCard, has arranged a cross-border financing for a Hong Kong-based TradeCard member via the bank's Hong Kong branch office. This marks the first time a Taiwan TradeCard member bank has arranged financing for a Hong Kong company.

A Hong Kong-based footwear supplier with headquarters in Taiwan obtained the financing for a transaction with a major footwear company in the US. According to TradeCard's chairman and CEO, Kurt Cavano, the cross-border financing transaction "demonstrates how streamlined the financing approvals process can be when conducted through the TradeCard network" and "shows how companies with branches outside their home country can still benefit from services through their local bank."

This article represents the view of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.