The international trade finance industry is a $10 trillion business. If you are a business that imports and exports as your main mode of operation, and you are not taking advantage of all the financial resources out there ready to assist your company to keep your supply chain moving, you are truly missing out. In today’s crowded global marketplace, it’s never been easier to align your business with international trade finance companies. Today, we are going to walk you through four undeniable benefits of you aligning your business to profit from this $10 trillion industry.
What is Trade Financing?
Trade financing is a set of financial tools intended to speed up cash flow so businesses can continue to fill orders, search and hire suppliers, and much more. These products are used by exporting and importing companies to help them with international trade and commerce.
For example, let’s say your company has a popular product, and your analytics show you that there’s a high demand for your product in Kenya. However, you don’t have enough funds flowing in to fill orders there. Not being able to consistently reach these international clients, who are clamoring for your product, could be the difference between you having a successful business or your business failing. Sufficient cash flow is that important.
Below, we are going to jump into four undeniable benefits of international trade financing.
No.4 – Flexibility
Not too many things are worse than thinking of a great idea, and not being able to bring it into fruition. Or, having an opportunity come right to your doorstep, and not being able to take advantage of it due to finances. International trade finance companies are here just for that reason. These companies inject new life into your business, and allow your company plenty of room to grow and seize opportunities that come your way. The flexibility of these companies allows you to pay a supplier in any local currency that is required. Also, the installment payments can be tailored to meet the business’ needs. Lastly, some of the flexible repayment schedules can be extended out as long as four months.
No.3 – Convenience
If you are new to the international trade financing industry and don’t have an extensive portfolio, with a long history, it will be very difficult for a traditional bank, or many other traditional lenders, to lend funds to your business. International trade finance companies specialize in this area and do not require very much documentation to get going. The contracts are usually small, and very clear-cut and to the point. The contracts are designed so there are no surprise fees you might see at a later date. What you see in the contract is what it is.
No.2 – Experience and Security
Engaging in numerous business transactions with foreign companies could be a little outside your normal mode of operation. Experienced international trade finance companies have decades of real-life experience with domestic and international businesses. And if you just want to try on your own, only wanting a little help here and there, they can give you all the guidance that you need to succeed, as well as peace of mind.
No.1 – Supply chain flow/Ready money
The number one reason businesses should align themselves with a reputable international trade finance company is supply chain flow. If you decide to get funding from one of these companies, the capital is available almost immediately! Having the capital you need when you need it can ensure you do not miss any opportunities that come your way, and if you have a certain section of the world clamoring for your product, you won’t keep them waiting, and miss out. Lastly, this type of financial loan does not go on your business record as debt, but as working capital, which looks a whole lot better.
As you can see, there are many reasons to start using an international trade finance company, such as Tradewind Finance, to grow your business. If you think you are ready to take that next step, Tradewind can be your one-stop solution for all your international trade finance needs. Whether you need financing, credit protection, and collections combined in a single trade finance facility, Tradewind provides streamlined, flexible, and best-in-class services. Consult with them today for more information on how to expand your business to a global audience.