In international trade, the buyer and seller would like to enter into an contract agreement , where the buyer expects the goods to be delivered before paying and the seller expects the payment first and deliver the goods. As there is no security involved in the open account business, they negotiate a trade contract including the settlement conditions. They agree to use a Blockchain platform where the buyer applies for a bank payment undertaking with his bank to minimize the risk. Once done, the seller ships the goods and the buyer can pay based on the agreed payment terms. The digital blockchain technology enhances trust and confidence and allows the user to clearly track international trade transactions.
The Payment Undertaking Business module is used to handle bank payment undertakings and can be used in connection with digital blockchain technology. In this respect, the blockchain platform is a secure and transparent platform where the buyer and seller get together for the open account business.
This business sector consists of a buyer, seller and seller's bank (if applicable). Once the buyer and seller agree to a trade agreement through a blockchain platform, the buyer instructs his bank using Doka system to issue a payment undertaking towards the seller. The liability is booked under the buyer.
The transaction between the buyer and seller happens through the blockchain technology. The contract data inputted into the system and the same reference number can be used to set up a connection between Doka System and the blockchain platform. Only the bank's own fees and correspondences are currently maintained under Doka.
There is no interface with blockchain at the moment. This business sector can be used directly with buyer/seller for any communication.
It is possible to finance the Payment undertaking contract using the Loan module. The liability will be booked on the Financed party which is Buyer in this case.