Trade Finance is the new funder on the block

Trade Finance

Trade finance is an umbrella term for the short-term financing of goods and services which are traded around the world, and includes a range of products such as Letters of Credit, Documentary Collections and import/export loans. Traditionally a form of finance that has been heavily reliant on bank and institutional funding, trade finance is now beginning to emerge within the alternative finance sector. Trade finance uses the goods or materials being shipped as the ’security’ backing a deal, rather than assets that the business or directors own.

We've made some forecasts and predictions for where we see the trade finance ...

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The Evolution of Cross-border Trade

Trade Finance

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 ...

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2015 International Trade Finance Survey Proves Revealing

Trade Finance

The findings of the Institute of Export’s 2015 International Trade Survey have just been published. The report makes fascinating reading, particularly in respect of the key issues and inherent complexities related to funding international trade.

Of the 55% of respondents who identified obstacles to trading internationally, 14% highlighted that finance was a major issue, second only to compliance with local regulations (20%).

Key areas such as insufficient information about payment methods, costs of getting paid amongst early stage businesses, inadequate financial planning, a lack of understanding...

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