Q:
What is a Trade Exchange?
A: A Trade Exchange
is an association of Businesses who have joined together for the purpose
of trading their products and services. A Trade Exchange offers an
integrated Industry-to-Industry marketplace to the Business community for
carrying out end-to-end transactions. An analogy may be drawn for easier
understanding with the Stock Exchange where stocks are traded or with a
commodity exchange where commodities are traded. Trade exchange is where
finished products/services are traded.
Q:
How does a Trade Exchange work?
A: The trade exchange
is an online marketplace where in members can trade by listing their
products and services. The members match their needs and negotiate. Once
the terms and conditions are finalized with the supplier, the seller
initiates the delivery. Post confirmation from the exchange with regards
to the transaction, ICICI releases the payment to the supplier. While the
members get all the benefits and security cover of a trade exchange the
settlements are in terms of cash through a mechanism that is similar to
that of credit card operations.
Q:
What is the Role of the Trade Exchange in Trade?
A: The Trade Exchange
performs the following important functions –
• Market Maker:
The Exchange allows its members to create a list of products and services
that they wish to buy and sell. All members of the Exchange can view these
listings. In this manner, the Exchange creates a virtual trading platform
simulating perfect market conditions for its members.
• Third-party
Record Keeper: The Exchange maintains the listings of goods and
services available on trade and by forging a strategic alliance with bank,
makes sure that all trade accounts are up to date. It also provides
monthly statements to members that reflect all trade purchases, sales and
a current balance.
• Clearing House:
Through the System of authorizations preceding the step of finalizing a
transaction, the Exchange virtually ensures that the seller is assured of
payment for the products / services he sells and ensures that buyers pays
for the delivered goods/services only.
• Banking Services:
The Exchange has entered into a strategic alliance with ICICI Bank which
extends credit line to the Members (conditions apply) to help them trade
actively on the exchange.
Q:
What are the benefits of becoming a member of the Exchange?
A: An Exchange member
can post various goods / services to buy or sell; a member can execute
end-to-end transactions on the exchange. Trade is a marketing, finance and
sourcing tool all rolled into one. It is a strategic choice for any
business as it adds value to in the following ways:
1.
Enhance working capital at no cost:
For any enterprise working capital is crucial for continuous business
growth. The everyday functioning of a business relies heavily on credit
support. An association with ICICI bank enables ITX to offer its members
to avail of an instant working capital at no cost. The credit line is
governed by ICICI Bank Credit policy for ITX members.
2.
Convenience in deal negotiation:
ITX provides to its members a well developed and tested trade engine
www.itx.co.in The trade deals are negotiated online.
3.
Credit Period:
ITX provides upto 50 days of interest free credit period.
4.
Assured payments for delivered material:
With clearing house mechanism ITX Trade Exchange ensures that the seller
member is assured of payment for the products/services he sells.
5.
Increased Market Share:
ITX enables you to access new markets across the country. You become part
of the growing community of ITX members.
6.
Enhanced sourcing avenues:
ITX gives buyers access to deal with a host of sellers directly. Your
negotiation scope is improved and facilitates low purchase prices as there
are no intermediaries between the buyers and sellers. Enhance your
competitive advantage with better prices.
7.
Increase sales Turnover
8.
Drives to
maximize utilization of production capacity.
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