We all rely to some degree on cross-border trade – whether it is for the digital devices we all have in our pockets or the clothes we wear, the cars we drive or the food we eat.
The volume is huge, twice the value of all the USD in circulation in 2014 alone. But the techniques for the financing of this trade haven’t changed much over 150 years. The challenge is as old as trade itself: how to fund the gap between acquiring the goods overseas and getting paid for them by the end customer at home.
Dany Rastelli, Head of Public Affairs and Marketing says:
“To this day, most cross-border finance is done by banks, using techniques that are almost Byzantine by modern standards, involving mountains of paper. Transactions are complex, unwieldy and, in many cases quite risky. Unsurprisingly it is frequently expensive!”
“Goods or services in one part of the world may be worth X,” explains Dany.
“But in another part of the world, they may be worth Y. However, the seller of those goods won't release them to the buyer — who wants to sell them on for a profit, of course — until he is in receipt of the buyer's funds. The issue for the buyer, though, is that doesn't have the funds until he has sold the goods at his end. Trade finance allows the buyer to bridge that gap and this is the driving concept around TradeRiver Finance.”
Our system, which we believe to be unique, lets traders get on with moving goods across the globe, while we (TradeRiver) provide the money required in a matter of minutes using a simple, fast platform on which to execute and for the first time, this is all possible without directly linking goods and finance.