An electronic letter of credit (L/C) advice solution claims to offer thousands of Hong Kong exporters the opportunity to reduce their order-to-cash cycle and improve speed and accuracy.

The solution is provided by a partnership between Bolero, the electronic platform over which L/Cs deals can be transacted, and Tradelink, the public-private partnership established to provide Hong Kong's export community with electronic services.

Partnerships

Bolero's partnership with Tradelink will make Bolero's electronic L/C advices solution available to Tradelink's 54,000 plus membership of exporter organisations, providing them for the first time with what claims to be a fast and efficient way to receive L/C advices electronically from financial institutions.

Korea Exchange Bank is to be first partner bank to support the Bolero solution for Tradelink's export community.

Benefits

The aim of the solution is that users will benefit from the efficiency and accuracy of electronic processing, which should, according to a Bolero statement, save both time and money and for the first time provide the exporters with a single, unified view of all their outstanding L/C advices.

The solution employs BoleroAdvise, which claims to be a secure, standardised platform for the electronic creation and transfer of the L/C advices. According to the solution providers, BoleroAdvise will be available via an easy and quick registration process, accessible online via standard browser-based technology.

Optimism

Tradelink's chief executive officer, Justin Yue Kwok-Hung, is optimistic that access to the solution will provide benefits. "BoleroAdvise introduces speed and efficiency into the documentary credit advice process, and with leading banks such as Korea Exchange Bank on board we can play a key role in helping our export customers to achieve real benefits by speeding up the approval of L/Cs and reducing their order-to-cash cycle," he says.

BoleroAdvise promises exporters the ability to receive all their documentary credit advices on the same platform, in the same format, regardless of the identity of the advising bank. It also claims to provide a clear audit trail, with information presented in a standard and user-friendly format.

Roll out

Bolero's chief executive officer, Arthur Vonchek, says he is "delighted that Tradelink has recognised the potential of BoleroAdvise to simplify the L/C advices procedure for its exporter community. Exporters should also be able to "optimise their working capital and credit line positions with their banks," he adds.

Vonchek reckons the strategic banking partnership with Korea Exchange Bank provides a template for Bolero's engagement in other key Asian trade communities.

Tradelink Electronic Commerce Limited is a joint venture between the Hong Kong government and other private sector shareholders.

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