25 Years of Trade Finance Experience - Trade finance India

Trade financing (also known as supply chain and export finance) is a huge driver of economic development and helps maintain the flow 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.

Every enterprise which is involved in Export trading gets benefits of Trade and export finance. However the biggest beneficiary is SME. The number is estimated to be at 42.50 million, registered & unregistered together.  A staggering 95% of the total industrial units in the country.Employs about 106 million, 40% of India’s workforce. Next only to the agricultural sector, produces more than 6000 products, contributing to 40% of total export

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 fulfil larger contracts, import goods from overseas and create wealth, jobs and develop economies.

Trade finance includes the following:

• Bonds and Guarantees
• Issuing Letters of Credit (LCs)
• Export factoring (companies receive funds against invoices or accounts receivable)
• Forfaiting (purchasing the receivables or traded goods from an exporter)
• Receivables financing, invoice factoring and invoice discounting
• Export credits (to reduce risks to funders when providing trade or supply chain finance)
• Insurance (during delivery and shipping, also covers currency risk and exposure)
• Supply Chain Finance

For exporters in developing countries, we can arrange facilities that are tailored
to the needs of exporters (e.g. agricultural exporters). Our team is widely
experienced in a variety of industries. There are usually no restrictions on
product type. All of these facilities can be created quickly with fair and
transparent conditions.
Our Solutions include
 Export Finance
 Letter of Credit
 Discounting
 Guarantees
 Forfaiting of Bills of Exchange
 Credit Insurance
 Documentary Collection

 Trade Credit Insurance
 Factoring
 Tailored Solutions
…………………………Apply Now

Trade finance offers many benefits, as it provides you with the ability to pay your
supplier for the purchase of goods. A facility is usually offered with invoice
finance as a way of bridging the gap between the receipt of funds through sales
and actual payment of goods to sell. By using these types of facilities, it provides
improved cash flow so allowing a business to tender for new business and move
quickly when there are new orders without delay as money will be freely
available. This can assist with improving supplier relationships and possibly
allow securing of early settlement discounts. The demonstration of liquidity to
suppliers and other business contacts promotes trade between the companies
and enables the expansion of import with less financial risk.
Trade finance allows buyers to be able to access an uninterrupted supply flow as
they provide liquidity to their suppliers. This helps to reduce the risks of selling
overseas. Facilities allow simple payment processes to be created and also
improve relationships with overseas suppliers.
Regional market knowledge and expertise in a wide variety of industries mean
that financial solutions can be created to meet your objectives.
Our Solutions includes
 Import Finance
 Letter of Credit
 Discounting
 Guarantees
 Availing
 Forfaiting of Bills of Exchange
 Credit Insurance
 Documentary Collection
 Trade Credit Insurance
 Factoring
 Tailored Solutions
………………………………..Apply Now

Purchase order finance is commonly used for trading businesses – which buy and sell; having suppliers and end buyers. Financing is on the basis of purchase orders that allow a shot of finance into a growing company – this type of facility is sometimes used or not known about by many companies and is at many times an alternative to investment. It also provides huge advantages when negotiating with suppliers and end buyers – gaining credibility within the transaction chain.

It is important to note that stock finance differs from straight funding of working capital as it relates to the movement, purchase and/or sale of goods, and services both domestically and international.
Stock finance is a type of lending used by many cross border and domestically
trading companies. It is important to note that there is a difference to trade
finance and other supply chain or invoice finance types.
Stock finance is a type of funding whereby the borrower uses a lender’s funds in
order to purchase product to sell. This is usually stock that will sit in warehouse
to sell on. A reason that this may be used instead of trade finance is that as
there will not be confirmed purchase orders, buffer stock is needed or stock will
be sold to customers where trade finance is not applicable. An example of this is
selling to individual consumers online.

Stock finance covers a variety of financial services designed to make cross-
border and domestic trade easier. Due to the number of products available and
variety of industries and goods covered, there are a wide range of tools used.
These include import bills for collection, LCs, pre-shipment export, shipping
guarantees and invoice factoring and discounting.

STOCK FINANCE INCLUDES
 Lending
 Issuing LCs
 Factoring
 Export Credit
 Insurance

Pre-export finance is a financial instrument where a funder advances funds to a business based
on historic orders from buyers. The business will normally use the funds to produce and supply
goods for the buyer.
Pre-export finance is when a funder provides capital to a borrower where orders
have been shown by buyers. Typically, the borrower usually requires finance in
order to produce and supply product.
Financing of this type provides the borrower with sufficient cash flow and
liquidity in order to maximize production of the goods or services. It is often
used to finance large, capital-intensive production operations
The company that is exporting will arrange for the buyer to transmit funds for
purchase directly to the lending company. The lender will send funds to the
company exporting after deductions are made to charges and interest related to
the prepayment finance in relation to the loan. The structure allows a producer
to ensure they will be paid for product that is being sent to the buyer. This
finance allows buyers to enter into long-term contracts, which may not have
been a possibility without the finance.
Lenders will look at elements surrounding the trade including the risk in delivery
and prior production. Repayment of the loan is based upon the lifecycle of the
trade, from production of goods and later sale. There is a real risk of non-
payment, which could happen when the seller distributes the goods in time and
the buyer fails to pay in full.