Synergy Energy Resources

Finance

Finance

Why do SMEs Need Trade Finance?

No matter what size your business be: you could be a small business importing products/materials from overseas, or multinational corporations doing imports or exports of a huge stock of inventory around the globe annually. You want your get your money in and out of the transaction as soon as possible, and not having worried about how complications like the volatile exchange rates or cash flow problems risking your trading process.

How Can Trade Finance Benefit My Business?

To purchase goods or stocks, the first step for you is to secure the funds necessary for the growth of your business. And the best way to do it is by using a tool that helps you manage the cash flow and working capital.

The good thing about trade finance is that it can unlock capital from your business’s existing stock or receivables based on the trade cycles in your company.
The key point is to reduce your payment gaps.

It can enable you to offer more competitive terms for both your suppliers and customers to increase your competitive edge and reduce other risks such as payment, country or corporate risks included. By reducing these payment gaps, exchange rate risks could be significantly minimized, and thus, the efficiency and flow of your trading cycle can be maximized.

Invoice discounting isn’t technically a trade-financing specific activity, but some trade financing institutions are also operating with this product as well.
Want to have your international payments are taken care of and risks managed at the same time?