TRADE FINANCE BANKING INSTRUMENTS
• Export Factoring/Trade Finance Facilities
• Forfaiting/Trade Finance Facilities
• Export Credits/Trade Finance Facilities
Funding Choices
2020 was a year of change. Change in business, options and financial channels to operate in.
For some businesses, 2020 was a year of extreme growth and lack of capital to finance it. Whether it be in the digital, medial (or other) related
businesses, finding capital can be an extreme challenge.
If this is you, we are your solution. Trade finance is an option when your bank cannot or will not help.
Read on and become informed. We are here to help
The Future of Money
Trade finance accounts for 3% of global trade, worth some $3 trillion annually. Simply put, it’ s the financing of trade in a company life cycle, whether you’re sending goods, services or commodities, a variety of financial instruments are used to structure this, under the umbrella term ‘trade finance’. Trade finance includes Letters of Credit (LCs), export finance and credit agencies, receivables and invoice finance, as well as bank guarantees. There’ s often a lot of confusion in definitions, so we’ve put together a guide on how companies can use these instruments in conjunction to finance trade flows.
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Trade Finance Includes:
Find the Most Appropriate Trade Finance Solutions for Your Business.
DLC
DLC (Documentary Letter or Credit)
Performance Bond
A financial tool issued by a bank on its clients’ behalf to assure their performance.
Instrument Preadvice by SWIFT
SLC
SLC (Standby Letter of Credit)
BCL
Bank Performance Letter
SKR
Safekeeping Recipt
LG
Letter of Guarantee or Bank Guarantee
Why is Trade Finance Important?
Trade finance (also known as supply chain and export finance) is a huge driver of economic development and helps maintain the §ow of credit in supply chains. It is predicted that 80-90% of global trade is reliant on trade and supply chain finance, and is estimated to be worth around USD $10 trillion a year.
As a result of the global economic crisis in 2008, export markets reduced in size by around 40-50%, SMEs being the hardest hit. As a result, lending decreased as investor’ s appetite for risk decreased, and banks had to reduce the sizes of their loan books.
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Who Benefits from Trade Finance?
Export finance has many beneficiaries: developing countries, governments, small and medium enterprises. SMEs are engines for economic growth and development, accounting for around 99% of businesses, 50% of employment and driving around 30% of private sector revenue in the UK.
In relation to export finance and the supply chain, many SMEs play a large role in the running of multinational corporations and larger companies. SMEs require access to finance to fulfill larger contracts, import goods from overseas and create wealth, jobs and develop economies.
Learn How We Can Help You with Trade Finance.
About Us
We are an independent and impartial financial consulting corporation. Through our platform we have alliances with 50+ banking and financial units and as such we can source to tailor a financial solution just for you
We have no ties with any one lender, so can be flexible at offering the product that’s right for you, not an off the shelf product that inhibits growth or limits opportunities for your business, no matter how complex. Often the financing solution that is required can be complex, and our job is to help you find the most appropriate trade finance solutions for your business.
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