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. Compared to domestic deals, both buyers and sellers face higher payment risks when they’re dealing with overseas suppliers. The buyer doesn’t assurance that whether they goods will be delivered, as per the agreed contract or nor. On the other hand, the seller also doesn’t know, if they will receive the full payment on time for the shipped goods.
Having access to trade finances can help both importers and exporters by addressing the payment risks associated. Letter of Credit is the most popular method of payment in global trades. This assures the seller that the bank will release the payment; once the seller submits the documents proving that the goods are being shipped as per the agreed contract. Since the finance products gives payment assurance to the sellers, there is no need for buyers to tie up their working capital in a single deal until the shipment of goods arrive. So, SMEs can do multiple deals on one time and gain more profits out it. And which in turn increases the company’s working capital. One of the best benefits of using financial instruments is – “Never miss a deal.” For instance: If you are having a profitable deal in hand, but if you don’t have enough cash funds to sign the contract means, then you can get help from Bank Instruments providers to get things moving smooth. Unlike other financing options, accessing trade finances will not affect your credit score or it won’t decrease your chances of funding further deals. Rather, it will increase your status in the trading market and helps to conclude your deal on time. How to Get Trade Finance Support from Banks? Usually, when it comes to availing trade finance support, traders used to contact their banks. But the bank will accept their request, only if they have an existing bank facility or they are ready to pay 100% cash as a margin amount. In case, if you don’t have either bank facilities or cash margin, then you will not be able to get bank support for your trading business. In this scenario, Bronze Wing Trading is here to support traders who require trade finance support to conclude their trade deals on time without blocking their capital. By having strong tie-ups with international banks, we facilitate the issuance of financial instruments on behalf of our clients globally. If you have decided to get trade finance assistance from us, please follow the simple steps given below:-
We are in this trade finance industry for over 30+ years. Since we understand the cash flow issues faced by the importers, we are serving the financial needs of our clients without availing cash margin or collateral. To get the Bank Instrument on behalf of your company within 48hrs, all you need to do is submit your requirements to us. Without global trade financing options, import and export wouldn’t be possible for SMEs. If you’re looking to get financial support for your upcoming import deal or contract, contact us today! Bronze Wing Trading can help you by providing the right option to make your cross-border transaction successful. Comments are closed.
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