Are you an importer who is looking to import goods from overseas? But are you feeling skeptical to deal as you don’t know the supplier personally & you think that what if, if the supplier defaults in shipping the goods after receiving the payment? Your supplier will also think the same; what if, if you default in making the payment after the shipment of goods. So, to ensure smooth transaction between buyers and sellers, Letter of Credit has been introduced.
According to the recent statistics, more than 95% of the global economy represents SMEs (Small and Mid-Sized Enterprises). SMEs work with very limited capital; so, they require further cash flow to make their presence available in the market. But these companies face the most challenges when it comes to availing the financial support they require from their banks. Here comes the importance of availing trade finances. This financing option bridges the financial gap often faced by SME traders. In this article, we are going to discuss why international trade finance is important for SMEs.
Are you running an import and export business? Wish to spread up your wings overseas? Do you require financial support to facilitate your business? Once you start to source overseas traders and explore new markets, the impact on cash flow cannot be predicted or even estimated. When it comes to expanding your business, you want a type of financial method that will help your small business to boost up sales and growth. This is how trade finances comes into place!
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