Mercaris Trading Platform
Guaranteed On-Time Payment
The Mercaris Trading Platform is designed to provide both buyers and sellers access to an effective and user-friendly market for IP grains and oilseeds. We love to talk about the the opportunities it provides our customers-- to make new supply chain contacts, to diversify marketing, to reduce transaction costs and to discover true market value of products. For many customers, one of the top benefits, however, is the peace of mind they are afforded because of our electronic payment system and procedures.
It’s a familiar problem: the buyer and seller make a deal, the grain is delivered, and then payment gets delayed 30 days, 60 days, or longer while paperwork gets straightened out and headaches mount. The Mercaris online Platform solves this problem by ensuring prompt payment within five days of delivery, provided all quality specifications are met.
Because payments are handled electronically, and all auction participants pre-register with Mercaris, money transfer is triggered by the physical delivery of the product, and electronic confirmation by the buyer and seller that all terms of the contract have been met, rather than by the participants’ own invoicing systems. Furthermore, Mercaris itself performs a basic ‘clearing’ function, by requiring that the total dollar value of the trade be available and held in escrow prior to shipment.
This process provides a number of benefits:
- Payment is held by a neutral third-party prior to shipment. The seller has assurance that he or she will be paid for delivering the agreed upon product. The buyer has assurance that the agreed upon product will be delivered prior to the transfer of payment to the seller.
- Final payouts to all parties are done quickly and easily after the product is received.
- The seller’s accounts receivable department does not have to work to track down payment after delivery.
- No underwriting or letters of credit are required, as credit risk is largely mitigated.
For more information about how our trading platform can support your grain marketing and merchandising operations, please contact Cinch Munson, Director of Market Operations, by email or by phone at (308) 530-9443.