Jing Yuan: Trusple is an unexpected surprise for SME owners like me
Ms. Yuan Jing is an “old friend” of the Alibaba family. As early as 2010, she began doing all sorts of businesses onAlibaba’s e-commerce platform , before finally discovering her passion and source of focus — selling glass crystal ornaments.
The entrepreneur currently runs her own company named Hubei Jingcan Glass Products Co., Ltd, a small and medium-sized enterprise with about 10 employees. Ms. Yuan’s company specializes in glass crystal ornaments and semi-finished products that are often incorporated into clothing and accessories, such as dresses, shoes, and bags, after undergoing reprocessing.
Most of her company’s clients are located overseas in key markets such as India, Pakistan, Central America, South America, Europe, and the United States.
Ms. Yuan knows from experience that lack of trust among global trading partners has made it difficult for many SMEs to do business. For buyers and sellers alike, this lack of trust can lead to delays in shipments and payment settlements, in turn placing pressure on SMEs’ financial position and cashflow.
When clients make their purchases with her company, Ms. Yuan would usually ask them to make a down payment of 30%, and then another 40% upon receipt of the bill of lading. The last 30% can be paid one to two months after the products have been successfully delivered.
Ms. Yuan alone must bear the risk if customers fail to pay on time. The relatively low profit margins of her business also mean that that one default a year could result in heavy financial losses.
“I’m so used to traditional ways of conducting cross-border trade, and I didn’t expect that blockchain technology can bring about such monumental changes,” Yuan said.
“Last month, Ant’s staff came to ask whether I would love to try their new international trade platform powered by blockchain. Frankly speaking, I did not even know what blockchain is, but I trust Alibaba and Ant. Trusple therefore came as a big surprise.”
Trusple works by generating a smart contract once a buyer and a seller upload a trading order on the platform. As the order is executed, the smart contract is automatically updated with key information, such as order placements, logistics, and tax refund options.
“Before, we need to confirm the order, confirm the invoice, bank remittance and so on. But now with Trusple, all we have to do is sign the contract, and the ensuring steps will run automatically.”
Using AntChain, the buyer’s and seller’s banks will automatically process the payment settlements through the smart contract. This automated process not only mitigates the intensive and time-consuming processes that banks traditionally conduct to track and verify trading orders, but also ensures information is tamper-proof.
“I no longer have to worry about not receiving payments in a timely manner. Trusple has helped to optimize trust, save time, and bolster efficiency.”
Further, successful transactions on Trusple enable SMEs to build their creditworthiness on AntChain, making it easier for them to obtain financing services from financial institutions.
“With the help of Trusple, the same amount of operating capital can now support more trading orders,” said Ms. Yuan. “I’m now aiming to grow my business by 30 percent next year.”