Done deal: How electronic promissory notes are supporting trade in Eastern Europe - Trade Treasury Payments

At the International Trade and Forfaiting Association (ITFA) seminar on the adoption of electronic negotiable instruments, there was discussion around how to reshape the way SME trade is financed across Eastern Europe.

According to research from McKinsey & Company, SMEs represent up to 20% of supply chain financing potential, yet banks capture less than 5% due to high costs and bureaucracy.

To better address this challenge, the ITFA MLETR (Model Law on Electronic Transferrable Records) seminar, “Progressing MLETR adoption with corporates in a scalable way,” brought corporates together to discuss how to leverage digital documents to close market gaps.

Done, a European supply chain management company, is one company helping in this regard.

How are ITFA and Done advancing SME trade finance in Eastern Europe using MLETR-compliant digital instruments and blockchain-backed transparency? TTP Global Advisory Panel member Andre Casterman reports.

Inside Done’s blockchain-backed, MLETR-compliant financing model

Since early 2024, Done has been a member of ITFA’s DNI initiative, focusing on the financing of small and medium-sized enterprises (SMEs) transactions between China and Eastern Europe.

By partnering with non-bank funders, the company is financing a portfolio of selected clients. Operating as a central procurement partner for Eastern European distributors, Done purchases goods directly from global manufacturers, owns inventory until full payment, and secures it in bonded warehouses.

The company’s 2025 portfolio targets low- and mid-priced standardised goods, ranging from household products to solar panels and electronics. They also offer asset-backed security where goods serve as collateral.

A key innovation comes in the use of tokenisation and digitalisation. The company leverages MLETR-compliant electronic promissory notes and bills of exchange via digital asset technologies like Enigio and DocuTrade on the XDC Network.

This helps to ensure real-time traceability and aligns with the UK’s ETD Act and French law upgrades, making SME transactions as secure as large corporate deals. The typical process involves issuing a promissory note after a funder accepts a supplier invoice, with the funder paying the factory directly.

Despite a 2022 setback due to the Russia-Ukraine war, Done has completed over $190m of revenue with more than 20 deals between Q2-Q3 2024 totalling $1.6 million and averaging $30k-$100k per transaction over 30-60 days.

Done’s value lies in its risk management and transparency, supported by insurance and advisory partners, and a community leveraging blockchain smart contracts. By owning goods and partnering with third-party funders, Done mitigates SME credit risks while facilitating turnover growth, which, for Done, has risen from $53 million in 2022 to $194  million in 2024.

The company’s adoption of digital negotiable instruments is a step towards modernising financial transactions. As organisations around the world follow suit, the vision of a frictionless, paperless, and highly trusted commercial ecosystem moves closer to reality.