New Delhi, April 26 -- Supply chain trade finance is the international version of a well-known financing technique, widely used across India. This technique is, of course, "supply chain finance". Supply chain finance is well known in India but it only works domestically. Most large companies have supply chain finance programs. These are useful to get early payments to suppliers funded by banks, whilst big corporate buyers enjoy credit terms. Suppliers are happy because they get their payments promptly; the bank earns a credit spread and the buyer gets to manage his working capital.

These programs are widespread and well developed - but in India, they do not work cross border. There are many reasons. The main issues include compliance con...