What do you think is the biggest challenge for any international trader? The answer: accumulating funds to finance the trading process. Strict repayment terms, collateral obligations and high-risk thresholds of conventional lending make the process more cumbersome and time-consuming. In this scenario, international trade financing by established banking institutions like SUISSE BANK PLC can help reduce risks and streamline the process of funding the trading ventures.
Discussed here are the key reasons why businesses should consider trade financing solutions.
#1: Reduce Risks and Fast Track the Trading Process
One of the biggest reasons why traders use trade financing solutions is because it helps reduce the risks of non-payment or non-delivery of goods as per the agreement. For an exporter, the banking institution underwrites a payment guarantee through a financial instrument in case the importer is unable to pay due to bankruptcy or reasons whatsoever. For an importer, a financial instrument ensures payment to the supplier only when they meet all obligations regarding product delivery.
By infusing trust and reliability in the process, trade financing solutions help speed up the process – reducing the time to market.
#2: Tailored Solutions
Premier banking institutions like SUISSE BANK PLC provides customised trade financing solutions that meet the unique needs of businesses. For an exporter, the service can be tailored to meet their manufacturing, production or supply chain initiatives. For an importer, trade financing solutions may be tailored to underwrite payment guarantees to the supplier in the form of Proof of Funds, Warranties, Bank Guarantee or Letter of Credit.
The finance products and services are highly flexible and can be customised to address the complex international trading processes. Banks and trade finance companies have a global network that enables them to provide credit facilities to guarantee exporter payment and delivery of goods. Furthermore, businesses also get the option to make payments in multiple currencies. This can help importers to get attractive discounts while reducing the challenges of variable foreign exchange rates.
#3: Long-Term Growth
Financing also allows businesses to yield profits through trade investments. It is a powerful tool to finance your trade without having to sell equities to new investors. This helps maintain improved control and flexibility. A trade finance company will assess the profitability of the venture and measure the risks to help make a smart investment decision.
With global trade financing solutions, businesses can accumulate funds without the constraints of equity financing or collaterals. It is a more flexible option to leverage opportunities without affecting the cash flow. Additionally, through trade financing, importers can make upfront payments to the exporters and in full. This helps build long-term mutually beneficial trade relationships, negotiate smartly with the suppliers, and speed-up the time to market.
SUISSE BANK PLC is a recognised banking institution offering customised trade financing solutions to offshore clients. Depending on the type of business and trading needs, the bank will advise the right financing solutions to streamline the process, mitigate risks and build long-term relations. To learn more about how your business can benefit from international trade financing, consult an expert financier.
SUISSE BANK PLC 