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Cross Border Credit

Merchants often sell in countries distinct from where their suppliers are

So how do they provide collateral for cross border leverage?

This varies by merchant size. Small merchants usually have to wait years to develop a relationship with suppliers to gain access to better payment terms. However, this is a risky operation for suppliers as they have to part ways with the merchandise, to a different country, before receiving their glorious monies.
Larger merchants have access to Merchant banks who will finance import transactions with foreign suppliers. This is also risky as the only collateral the bank holds is inventory. What will suites do with a container full of Chinese fidget spinners? This leads them to charge higher rates to offset the risk.
In all cases, the merchant will still have to deal with FX.

Ok, so what is Kona doing differently?

We manage collateral (receivables) locally and, if the merchant requires, expedite loan funds to suppliers abroad. Just like that, our dear liquidity providers have local protection and managed risk, and our valued merchants don't have to deal with the hassle of FX.