TETRIS CORE TEHNOLOGIES

Trade credit holds information about obligations and trust between market participants.

When markets are disturbed this trust can be used to mitigate the liquidity crunch and avoid unnecessary insolvencies.

This prevents the forceful exits of companies due to sudden interruption of their business activity and contributes towards a quick economic recovery.

TETRIS CORE TECHNOLOGIES™ (TCT)

TETRIS CORE TECHNOLOGIES™ is a registered trademark.

Method TETRIS Debt Resolving© is registered and protected work. It is also a set of software tools.

TCT is used to reduce mutual indebtedness trough non-monetary intervention

Excessive delays in payment transactions generally have an adverse effect on the cash flow of the companies.

This forces small firms to seek extensions of their overdraft facility and increase their borrowing. Late payment of commercial debt can play a significant role in the survival of the enterprises as their liquidity can be severely affected even forcing some of them to exit the market.

As a consequence of the third Basel agreement, access to credit by SMEs has become extremely difficult. The stricter constraints made banks more stable but consequently brought severe restrictions on SMEs access to credit. This, in turn, limited the ability of the financial sector to serve the needs of significant parts of the economy, adding to late payment crunch.

The emergence of Fintech, Regtech, e-invoicing and real time VAT reporting caused that vast amounts of data on business transactions and debt are now collected.

This creates new opportunities for debt resolution. It also offers new opportunities for the financial sector to serve the real economy. Businesses no longer have to rely solely on the financial sector to resolve short term financing issues. Alternatively, they can address the business community and use the mutual trust expressed as trade credit they gave to their buyers to resolve the mutual indebtedness. Such mechanisms called TETRIS Core Technologies (TCT) are at present used in Slovenia for decades. TCT successfully clears between 250 and 682 million EUR per year representing 0,5% to 2,5% of GDP respectively.

In Europe the introduction of Payment Services Directive (PSD2) has presented an opportunity to use TCT as a Liquidity Saving Mechanism (LSM) for all enterprises. It can be integrated into services of banks, Payment Services Providers and complementary currency operators. TCT enables them to save liquidity for their customers and therefore aids them to improve their financial position. TCT delivers a financial tool currently employed exclusively by payment systems and multinationals to all enterprises.

Using TCT diminishes the need of SMEs to seek loans to finance the working capital.

The financial sector still benefits from the reduced risks, stability and growth generated by substantial mutual indebtedness reduction. Financial institutions using TCT also gain important new revenue source with debt clearing charges.

TCT presents a unique growth opportunity. Integrating TCT with payment solutions leads to:

Universal access to LSM at reasonable cost for firms of all sizes. Every validated invoice is accepted as a trade credit that can be offset.

Promotion of healthy community economies under local control, reducing the over-indebtedness.

Creation of interconnected networks of social and economic solidarity. Extending the community along the supply chains in various industries.

As such TCT promotes financial inclusion and sustainable finance. It combats late payment, enhances payment and financial systems therefore contributing to economic growth.

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