LTP Trade, the provider of online solutions for companies seeking to source funding or risk cover for trade finance, has announced the launch of a new trade finance online sourcing application.

LTP Trade Edge - the first client installation of which took place on 25 October 2002 - aims to streamline LTP's online auction and procurement processes.

Multiple bids

Trade finance auctions conducted by LTP have so far been held on either a single deal basis or involved extensive involvement by the company's staff. LTP Trade Edge however will provide clients with access to the company's roster of nearly 170 branches of banks and financial institutions worldwide.

In the new online sourcing application a client's request - typically for a financial commitment - is sent to every bank on the LTO roster. The banks will then bid for the client's business. The reply time depends on what the client wants, whether this is a simple letter of credit (L/C) confirmation for example or a longer auction process.

Additional services

The basic LTP Trade Edge package provides a bidding window for standard trade finance facilities, including L/C confirmation and L/C discounting.

LTP provides additional products and services. These include access to pricing information, offering more complex or specific trade finance instruments and advice on how best to structure the offerings of those instruments.

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