THE INVESTMENTS THE BANKS STOPPED OFFERING

Trade Finance Loans

Trade Finance as an underutilised Asset Class

  • Trade finance transactions refer to the capital needed to buy or sell, or import or export, products or other tangible goods.

  • Trade finance includes such activities as lending, issuing letters of credit, factoring, export credit and insurance.

  • Today, up to 80 per cent of global trade is supported by some sort of financing or credit insurance.

  • There are significant gaps in financing and therefore many companies cannot access the financial tools that they need.

  • Banks are forcing small businesses to jump through too many hoops to achieve finance.

  • Without adequate trade finance, opportunities for growth are missed.

  • Small and medium sized enterprises (SMEs) face the greatest hurdles in accessing financing on affordable terms.

  • SUPPLIER CREDIT FACILITIES

  • PURCHASER CREDIT FACILITIES

  • IMPORTER / EXPORTER CREDIT FACILITIES

  • FORFAITING FACILITIES

SUPPLIER CREDIT FACILITIES

  • Where financing lines of credit is made available to suppliers to pass on to their clients.

  • Credit facilities can really assist a supplier, especially in situations where they themselves have their own suppliers to pay.

PURCHASER CREDIT FACILITIES

  • Where lines of credit is offered to end purchasers.

  • End purchasers in this circumstance are clients that buy goods from overseas, and where financing terms can have a huge impact on their cash flow, allowing them to do more, as opposed to having their money tied up with a supplier, while waiting for goods to arrive and then be sold.

IMPORTER / EXPORTER CREDIT FACILITIES

  • Where lines of credit is provided to Importers and Exporters as part of their own purchasing and financing requirements.

  • These lines of credit can provide a massive lift to Importers and Exporters, not just in freeing up cash flow but to also allow their customers to do more, to acquire more by having credit terms passed on to them.

FORFAITING FACILITIES

  • Forfaiting is a means of financing exporters use that enables them to receive immediate cash by selling their medium- and long-term receivables -- the amount an importer owes the exporter -- at a discount.

  • The exporter also eliminates risk by making the sale without recourse, which means the exporter has no liability regarding the importer's possible default on the receivables.

  • We as the forfaiter is entity that purchases the receivables, and the importer then pays the receivables amount..

  • We as a forfaiter are a financial firm that specialises in export financing.