by: Grow VC Group

The trade and export industry is growing each year; the U.S. alone exports well over $20T worth of goods and services a year. Businesses need to consider operating in international markets to increase efficiencies, compete, and grow.

Traditional trade finance facilities offered by banks and institutions are being usurped by competitive alternative financiers who can offer more flexible terms, faster payment and great lending rates and digitilization of services is driving this. Currently, most documents, subcontracting and outsourcing services such as Letters of Credit (LCs) and Bills of Lading are paper-based and involve laborious manual processes.

At the recent Global Trade Review’s ‘Trade Finance Week’ (http://www.gtreview.com/news/europe/icc-offers-digital-trade-finance-dispute-settlement-docdex/), traders called for banks to step away from paper-based shipping documentation, highlighting the digital trade could increase speed, efficiency and accuracy of facilitating the import and export of goods.

At Trade Finance Global (www.tradefinanceglobal.com), we have seen many advances in digitalization which are revolutionizing trade finance:

  1. Digital Generally Advances in digital have meant that in finance, speed is increased and costs are reduced along with secure settlement of transactions.
  2. Crowd-funding for exporters

    Crowd funding has been used for exporting companies, where investors acquire equity or are promised goods in a company so that they can trade and grow to international markets.

  3. Online platforms

    Many online platforms have sprung up over the last few years, benefiting off the low interest rate environment with high levels liquidity in the market.

  4. Risk and credit online

    Financiers provide both export and import financing and trade risk mitigation products to secure the risks exporters’ are met with when trading internationally.

The technology boom in lending has not yet fully moved into the trade finance sphere. A number of companies have dipped their toe in the water. Most notably, invoice discounting and peer-to-peer lending platforms. However, we see that with the increasing regulation of the banks, higher capital adequacy requirements and advancements in technology, that there will be further moves within this sector and we look forward to seeing international trading companies growing fueled by new lenders.

Read the whole article on TradeUp Blog.

Trade Finance TradeUp

By Guest Author James Sinclair for TradeUp, Trade Finance Global (www.tradefinanceglobal.com/finance-products/trade-finance/)


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Grow VC Group The Grow VC Group is the world leading, global pioneer of securities crowd funding, peer to peer marketplaces, new investment models and global business development. Established in 2009, the Group has developed new investment models on six continents and continues to innovate the global market.

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This entry was posted on Friday, July 31st, 2015 at 6:00 pm and is filed under Business Updates. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.