Project Overview
A UK export finance specialist providing trade finance facilities to 420 UK exporters needed to rebuild their ...
Technology Stack
Compliance & Standards
The Challenge
A UK export finance specialist providing trade finance facilities to 420 UK exporters needed to rebuild their legacy platform — automating invoice discounting, Letters of Credit (LC) management, and UK Export Finance (UKEF) guarantee integration. FCA Consumer Credit Act (credit agreement compliance for SME exporters), UK GDPR, AML (MLRs 2017), ICC Uniform Customs and Practice for Documentary Credits (UCP 600) for Letters of Credit, and HMRC CDS (Customs Declaration Service) integration for export verification were the requirements. Budget: £120,000.
Our Approach
Invoice discounting for exporters
- exporter submits export invoice (PDF + structured data) → OCR extraction (Google Cloud Vision — exporter, importer, currency, amount, INCO terms, payment terms) → debtor credit check (Dun &
- Bradstreet Commercial) → importer country risk (UKEF country risk grading) → advance rate calculation (70–85% of invoice value based on country risk + debtor credit).
Drawdown
exporter requests drawdown → Faster Payments to exporter account → invoice registered as financed.
UCP 600 Letters of Credit
documentary credit process — LC issuance, document presentation (bill of lading, certificate of origin, commercial invoice), document compliance check (UCP 600 requirements), and payment advice.
Digital LC
structured LC terms stored in platform.
Document checklist
- UCP 600 required documents per LC type — platform generates document checklist automatically.
- SWIFT MT700 (LC issuance) and MT760 (guarantee) message generation for correspondent bank transmission.
UKEF Guarantee Integration
UK Export Finance (UKEF)
Export Insurance Policy
UKEF provides credit risk insurance for UK exporters selling to higher-risk markets.
UKEF API
- exporter eligibility check, policy application, premium calculation, policy issuance, and claim notification.
- UKEF country categories (0–7): category 0 = no UKEF cover needed (OECD high-income), category 7 = maximum risk (UKEF provides up to 95% credit risk insurance).
Platform
automatic UKEF country category lookup per destination country, suggested insurance cover based on transaction value and country risk.
MLRs 2017
trade finance is a high AML risk sector (trade-based money laundering — TBML).
Enhanced due diligence
- all trade finance clients require enhanced KYC (business verification, UBO identification, sanctions screening, adverse media check).
- Trade-based money laundering indicators: over/under-invoicing detection (compare invoice value against commodity price benchmarks), phantom shipments (cross-reference against HMRC CDS export declarations), and unusual payment routes (payment from third-party country not involved in trade).
The Results
Platform live at 18 weeks, £110,000 — under budget.
Invoice discounting approval time: 3.2 days → 4.2 hours automated.
LC management: 340 LCs managed in first 6 months (previously Excel-based).
UKEF guarantee applications: automated — previously 2 weeks manual.
AML flag rate: 2.3% of applications (industry benchmark: 1.8% — conservative calibration reflecting trade finance risk).
FCA credit agreement compliance: legal review confirmed compliant.
“4.2 hours invoice discounting approval versus 3.2 days. For an exporter waiting to ship, that turnaround time is the difference between winning and losing an order. UKEF guarantee applications automated — previously 2 weeks manual per application. LC management in a proper platform versus Excel is a transformation. AML flag rate correctly calibrated for trade finance risk." — CEO, UK Export Finance Specialist (name withheld)”
Project Details
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