How would you describe Tradewind’s business model?
Tradewind’s primary focus is to support an array of market segments and industries to avail cross-border trade finance solutions. One of its major product offerings to suppliers, traders, and manufacturers includes export factoring solutions – a trade-credit insured, ring-fenced form of receivables financing which allows for companies to generate more sales by offering longer credit terms to buyers. It also provides supply-chain solutions to customers who qualify based on their jurisdictional requirements and balance sheet strength to extend days payables without negatively affecting their cash position, providing them with the cushion and liquidity needed to focus on other pressing commitments. Resultantly, both buyer and supplier achieve a win-win situation.
Our partnerships make a collective impact on how business is conducted globally – Tradewind maintains a keen focus on providing cost-effective and sustainable access to credit to customers in the emerging markets. Our trade finance experts possess the sectoral expertise needed to help align documentation and requirements to successfully obtain access to credit, and obtain additional access to credit without the need for tying up fixed assets towards collateralising the facility. Partnering with a trade finance (factoring) service provider like Tradewind, may ensure additional resilience against trade finance shortfalls.
Why is the UAE SME market so exciting for your business?
The UAE has one of the most liberal and resilient trade regimes in the Gulf. It attracts strong capital flows from across the region thanks to government incentives to investors and because of the country’s ongoing commitment to technological and innovation advancements. Alternative funding options are gaining traction in the region due to an ongoing need to find solutions and ways out for clients who would otherwise find it difficult to secure additional credit, or any credit at all.
The acceleration in digital technologies has led to a reset in the velocity of business, and so, companies need to be plugged in and prepared for both potential disruptions as well and unplanned opportunities which would affect a company’s cash and bank balance. As awareness of factoring increases over the next few years, we see immense size and scope for catering to the needs of existing and up-and-coming SMEs and their need for practical, sustainable liquidity solutions.
The UAE’s recent groundbreaking decisions to open up markets to trade and abolishing strict lockdowns and travel restrictions, works in line with our strategy to support purpose-led growth to position everyone in the supply-chain space to navigate and predict high-risk scenarios which could cause further disruptions and liquidity issues.
How does your provision of export factoring solutions in the UAE differentiate from your business’ work in comparison to your operations in countries such as India and Bangladesh?
In India and Bangladesh, we provide supplier financing solutions to exporters selling to the UAE, EU, US, and other jurisdictions. Given our comfort and continued commitment to the region, Tradewind caters to both domestic and international financing needs in the UAE. We understand the complexities associated with a diverse spread of trading and manufacturing industries situated in the region, therefore, we arrange transactions to fulfill credit and payment objectives for both buyers and suppliers.
How do you reassure potential clients that your business is legitimate and appropriately regulated?
Tradewind GmbH, regulated by BAFIN, is a German-headquartered trade finance company with deep roots in the emerging markets. Tradewind Middle East Limited, its UAE affiliate, is regulated by the DFSA. Aligned to major trade corridors, it expanded its presence to more than 20 offices in 14 countries, affirming its commitment to providing responsible financing which helps companies accelerate their cash flows, improve collections, and reduce exposure to potential bad debts. While the group supports liquidity requirements along the supply-chain spectrum where traditional lenders would often shy away from, it understands and appreciates that credit intermediation increasingly takes place outside the banking sector.
Credit intermediation increasingly takes place outside the banking sector.