Small and medium-sized Indian exporters face numerous challenges in expanding their trade globally, from accessing affordable working capital to meeting the lengthy credit periods demanded by large buyers and navigating complex documentation requirements.

The International Financial Services Centres Authority (IFSCA), established at GIFT City, Gujarat, has floated guidelines to set up International Trade Finance Service (ITFS) platforms. These platforms will facilitate trade finance between exporters and importers, through financiers from across the globe, in a currency of their choice and at the lowest possible rates discovered through a transparent, online auction mechanism.

Reverse factoring is a buyer-led supply chain financing programme that optimizes working capital by providing early payment to multiple suppliers, specially designed to cater to small and medium enterprises. It allows the credit worthy buyers to defer their payment.

IFSCA established at GIFT City Ahmedabad, has floated guidelines to set up ITFS platforms for facilitating Trade Finance between Exporters and Importers, through Financiers from anywhere across the globe.