New York May 30, 2002 Actrade Financial Technologies, a provider of financing, payment and processing solutions, this week launched its E-DRAFT Program, a trade finance program intended to facilitate payment and settlement for international trade activities.
Offered through the company's subsidiary, Actrade Commerce, the E-DRAFT Program is essentially the international version of Actrade's E-TAD Program. Through E-DRAFT, importers and exporters are afforded the same commercial payment, processing and settlement solutions that domestic companies have used through E-TAD since 1993.
"We have adapted the benefits of the original patented TAD Program and the electronic origination and processing enabled by E-TAD to the special needs of customers engaged in international trade," said Alexander Stonkus, president and CEO of the company. "We are finding that there are special needs that are not presently being served in the international markets and are very pleased that the E-DRAFT Program provides a solution to help importers and exporters to expand their business."
Stonkus said the company piloted the E-DRAFT Program on a select country basis and that the initial phase proved successful. For example, the program allowed one Actrade customer to expand its business through the ability to increase imports of electronic components from the United States and defer payment for 90 days, while the exporter received immediate payment. "With several successful transactions now completed, we're ready to expand the program," Stonkus said.
E-DRAFT uses a traditional bill of exchange as the payment instrument. A bill of exchange is payable by the importer for a stated sum at a pre-determined future date. Importers enrolled in the program can defer payment up to 180 days. Actrade purchases the bill of exchange from the exporter for the face value, less a discount, within two working days from Actrade's receipt of the importer's signed obligation to pay.
Actrade says the program lets international trading partners choose a trade finance method that meets the needs of both parties.