Cross-border Trade Troubles

A small domestic factory suddenly receives an overseas buyer’s order. It seems like a good thing. But the actual process? It’s a nightmare.

How does the goods move? Loaded onto a ship, crossing the ocean. We won’t discuss this part. The real headaches are in these three stages:

The first is the mountain of documentation. Bill of lading, invoices, customs declarations, various certificates... stacked up to a foot high. These documents are passed back and forth between different departments, and a single mistake can cause the entire process to stall immediately. Sometimes, just to get a stamp, it can delay by ten days or even half a month.

The second is payment collection. When the bank sees incomplete or suspicious documents, they start to delay. The buyer also drags their feet. As a result, the goods arrive, all documents are in order, but the money is nowhere to be seen. Some merchants have to wait one or two months to get paid, and their cash flow tightens instantly.

The third, even more painful issue—financing. Merchants want to use this in-transit order as collateral for a loan, but the bank’s usual response is: "Is this order genuine? Is there collateral?" It’s basically a waste of time.

Where is the core problem? To put it simply, it’s three issues: logistics, information, and capital—these three lines operate separately, unable to see or coordinate with each other. Banks can’t track the goods’ location or verify the authenticity of documents. Everyone is fighting their own battle.

How new ideas are emerging

Now, the industry is exploring a new approach—integrating these three lines into one. Building a digital platform that links logistics data, documentation, and capital flow together. Banks can see in real-time where the goods are and whether the documents are genuine; customs can clear goods more efficiently; merchants can also secure financing faster.

The core idea is cross-sector integration. No longer are institutions managing their own parts independently, but instead forming a unified information network. When data flows smoothly, the entire process’s efficiency changes completely.