Recordent, the homegrown tech platform focused on providing credit risk solutions to enable commerce, has entered into an agreement with Equifax Information Services LLC, Inc. to reduce trade-related risks for Indian exporters and importers who trade with U.S. companies. The solution enables Indian exporters to check the credit history of their U.S. business clients. These checks save on financing costs, increase competitiveness and expand commercial activity between U.S. and Indian businesses. Indian importers can also make use of the information to ensure their purchases are from valid and creditworthy businesses.
India’s overall trade with the US in 2020 stood at $78.3 billion, making India the 9th largest trade partner for the U.S. India’s MSME sector contributes ~30% of the overall GDP and ~48% of the country’s total exports. Given the significance of the MSME sector in India’s economic growth and international trade, Recordent’s tech solutions are focused on addressing the challenges faced by MSMEs. The solution reduces credit risks by providing insights into their payment history and improves the working capital cycle through faster collections.
Using the solution, Indian businesses can better understand the credit history of U.S. businesses, including payment history, annual sales, credit availability, delinquencies, and liens, etc., in a descriptive format making it easy to understand the report in no time.
Winny Patro, CEO & CO-Founder, Recordent, said, “India has 6.3 crore MSMEs that contribute to ~30% of the country’s GDP. Of these, about 40% are involved in exports. Indian companies need to grow to compete in the world. The Government of India’s Make in India push with a strong emphasis on increasing exports is in the right direction. However, most exporters operate on thin margins and cannot provide longer and favorable credit terms. We are happy that our agreement with Equifax will be able to arm Indian businesses with the credit information of US Companies and potentially reduce their trade-related risks by making informed decisions.”
William Phelan, Senior Vice President and General Manager
at Equifax Commercial, commented: "Smarter insights from verified information drive smarter decisions. The Equifax Business Credit Report covers 32 million U.S. companies and their 56 million locations. We are energized by the cross-border trading that our products enable."
Earlier this year, in March, Recordent and Equifax India announced a partnership to help MSMEs make informed decisions before offering credit terms to buyers by providing them access to comprehensive credit reports of over 25 million Indian businesses and over 500 million Individuals through a real-time, consent-based, online journey. The current partnership is an extension of Recordent’s aim of providing Indian MSMEs useful data insights before offering trade credit to their customers.