One of the most common concerns merchants have regarding doing business via an online cash grain trading marketplace is the risk associated in trading with new or unknown parties. It's a valid concern; after all, we're in the business of risk management and getting stiffed on a payment can sink a year's profit. Fortunately with bushel, managing this risk couldn't be simpler. There are several ways that Bushel makes it easy to mitigate counter party risk while simultaneously expanding market access.
First and foremost its important to recognize that Bushel is not simply an auction site with bids and offers coming in from anonymous sources. Though the dynamic bid platform is an important part of the Bushel strategy, the site is much more than that. Merchants are always in control over who they trade with. If you've posted a lot and a bid comes in from somebody you don't want to do business with, you have the ability to simply reject the bid. That's not to say that the entire market will know who is bidding on a specific lot; only the seller can see that. So, there is still a degree of market anonymity, but buyer and seller are aware of who they are trading with.
Second, with Bushel, you will soon have the ability to build your own network of preferred, trusted trading partners. Want to post a lot that only your network can see? No problem. We understand that sometimes you don't want to broadcast an offer to the entire marketplace. Bushel makes it easy to do business the way you want to do it.
Finally, any trades made via the Bushel site will be subject to counter party credit approval. Once a bid or an offer is accepted a disclaimer will pop up to that effect. Once a price is agreed upon, merchants with the two companies will simply exchange company information and both credit departments will make the determination on approval or dis-approval of the counter party's worthiness. Its that simple.
Managing counter party risk with Bushel is probably not too much different than you're accustomed to in doing business over the phone. Still, we're always looking for ways to improve. In the future, we are excited about several new tools that traders will be able to use to improve market transparency and liquidity via Bushel, including the ability to purchase trade guarantees from financial institutions. Stay tuned!
First and foremost its important to recognize that Bushel is not simply an auction site with bids and offers coming in from anonymous sources. Though the dynamic bid platform is an important part of the Bushel strategy, the site is much more than that. Merchants are always in control over who they trade with. If you've posted a lot and a bid comes in from somebody you don't want to do business with, you have the ability to simply reject the bid. That's not to say that the entire market will know who is bidding on a specific lot; only the seller can see that. So, there is still a degree of market anonymity, but buyer and seller are aware of who they are trading with.
Second, with Bushel, you will soon have the ability to build your own network of preferred, trusted trading partners. Want to post a lot that only your network can see? No problem. We understand that sometimes you don't want to broadcast an offer to the entire marketplace. Bushel makes it easy to do business the way you want to do it.
Finally, any trades made via the Bushel site will be subject to counter party credit approval. Once a bid or an offer is accepted a disclaimer will pop up to that effect. Once a price is agreed upon, merchants with the two companies will simply exchange company information and both credit departments will make the determination on approval or dis-approval of the counter party's worthiness. Its that simple.
Managing counter party risk with Bushel is probably not too much different than you're accustomed to in doing business over the phone. Still, we're always looking for ways to improve. In the future, we are excited about several new tools that traders will be able to use to improve market transparency and liquidity via Bushel, including the ability to purchase trade guarantees from financial institutions. Stay tuned!
