European fintech specialising in supply chain payments, Tradeshift, is working with the Danish Export Credit Agency (EKF) to open up much-needed liquidity to businesses in Denmark through a technology-driven supply chain financing model. Under this Danish initiative banks will be encouraged to offer favourable credit lines to large organisations with export turnover in order to pay their suppliers earlier. EKF will underwrite these lines of credit. It is being touted as a cost-efficient alternative to government-backed loans and stimulus packages designed to help ease liquidity pressures placed on businesses as a result of COVID. Tradeshift has made the financing model entirely open source so that other fintech companies and organisations can provide solutions to help facilitate the digital requirements of the overall system. Whilst the financing model is currently available only in Denmark, there is no reason why it could not be rolled out in other countries. Tradeshift is currently in discussions with a number of governments across the world who are considering the model as a way to make working capital available to businesses, says the press release.

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