Linking trade finance transactions can result in a more efficient, diverse, and accessible environment that benefits all parties involved.

Linking trade finance transactions can provide various advantages, including:

Reduced Risk: By connecting deals, trade financing companies can spread risk across a number of transactions, minimizing the effects of any one deal that doesn't work out. This may contribute to lowering trade finance's total risk and improving its value to businesses.

Enhanced Efficiency: By linking deals together, the time and expense involved in managing several transactions can be cut in half. This can make trade finance operations more accessible to a larger range of enterprises and help them run more efficiently overall.

How link deal functions in Rivo:

RIVO allows users (Corporates and Financiers) to link transactions that can be used while executing any business dealings.

• Go to the "My deals" section on the home page, choose the transaction card you want to link, and then click the three dots to the card's upper right.

• Once you select the link deals option, a selection of connections between the deals will be presented to you. These connections can be made by reference number, parent contract, or child contract
• A linking reference number is used to link various trade finance transactions together, whereas a parent contract is a master agreement that specifies the terms and conditions for a number of related trade finance transactions, and a child contract is a particular trade finance transaction that is linked to a parent contract.

• When the deal is selected, the linkage type of the below types should be defined:

  • Reference: A simple connection to the connected deal is established.                                                  For instance, when a bank issues a Letter of Credit (LC) for a corporate. Later, the corporate requests for a Guarantee issuance related to the same transaction. This shows the Linking of the Guarantee to the LC that they are connected but managed separately.                                                                                                            
    The following image shows how an Guarantee contract in RIVO is connected to a Issued LC using     Reference linkage,                                                                                                                                
    • Parent/Child - A hierarchy to the connected deal is established.                                                           For instance, a parental Guarantee is issued to cover multiple sub-projects. Each sub-project has its own Child Guarantee under the main one.                                                                                             The following image shows how the Domestic guarantees acts as a child Guarantee to the main Parental Guarantee # 250220110514XFUS in RIVO. The domestic guarantee in this case is a 'Child' where as the International/Main Guarantee is a 'Parent'                                                                       

      • Task: Users can link tasks to an existing deal via the "Link" action on the context menu.

• The last step is to select the Link to option and input the reference number of the contract you want to link with.

• Once you have completed the steps outlined above, a pop-up message stating that the deals have been linked successfully will appear.