Trade Finance – Netherlands

2022 Guide | Trade Finance Global

Trade Finance - Netherlands

Welcome to the Netherlands Trade Finance and International Trade hub. Find out how our Netherlands-based team can help you access trade finance to increase your imports and exports, or find the latest research, information and insights on trade finance here.

What is trade finance?

Trade Finance is the financing of goods or services in a trade or transaction, from a supplier through to the end buyer. It accounts for 3% of global trade, worth some $3tn annually. ‘Trade Finance’ is an umbrella term, which includes a variety of financial instruments that can be used by an importer or exporter.

These include:

  • Purchase Order Finance
  • Stock Finance
  • Structured Commodity Finance
  • Invoice Finance (Discounting & Factoring)
  • Supply Chain Finance
  • Letters of Credit (LCs) and;
  • Bonds & Guarantees

The terms Import Finance and Export Finance are used interchangeably with Trade Finance.

In order to address some of the common issues and misunderstandings around Trade Finance, we have put together this short guide.

How can trade finance benefit my Netherlands based business?

Trade finance facilitates the growth of a business by securing funds required to purchase goods and stock. Managing cash and working capital is critical to the success of any business. Trade finance is a tool which is used to unlock capital from a company’s existing stock or receivables or add further finance facilities based on a company’s trade cycles.

Why does this help? A trade finance facility may allow you to offer more competitive terms to both suppliers and customers, by reducing payment gaps in your trade cycle. It is beneficial for supply chain relationships and growth.

Other benefits of trade finance

  • Short to medium-term working capital, using the underlying products or services being imported/exported as security/collateral. It increases the revenue potential of a company, and earlier payments may allow for higher margins.
  • Trade finance allows companies to request higher volumes of stock or place larger orders with suppliers, leading to economies of scale and bulk discounts. 
  • Trade finance can also help strengthen the relationship between buyers and sellers, increasing profit margins. It allows a company to be more competitive.
  • Managing the supply chain is critical for any business. Trade and supply chain finance helps ease out cash constraints or liquidity gaps – for suppliers, customers, third parties, employees or providers. Earlier payments also mitigate risk for suppliers.

It is important to note that trade finance focuses more on the trade than the underlying borrower, i.e. it is not balance sheet led. Therefore, small businesses with weaker balance sheets can use trade finance to trade significantly larger volumes of goods or services and work with stronger end customers.

Due to the embedded risk mitigants that surround trade finance lending and instruments, it leads to the potential of a diversity of supplier base for trading companies. A more diverse supplier network increases competition and efficiency in markets and supply chains.

Companies can also mitigate business risks by using appropriate trade finance structures. Late payments from debtors, bad debts, excess stock and demanding creditors can have detrimental effects on a business. External financing or revolving credit facilities can ease this pressure by effectively financing trade flows.

 

Get started – talk to our Netherlands team



If you have a trade finance enquiry, please use the contact form below.

 

Finance Queries:

nl.team@tradefinanceglobal.com

trade.team@tradefinanceglobal.com

Partnership Queries:

introducers@tradefinanceglobal.com

Find out more about partnering with us here.

 

Want to learn more about Trade Finance?

Look no further. We’ve put together our feature Netherlands trade finance insights, research and articles, and you can catch the latest thought leadership from the TFG, listen to podcasts and digest the latest in international trade in the region right here.

From the Editor – Trade Finance Insights

Hipotekarna Banka on trade finance, multilateral support, digital transition in Montenegro PODCAST|Hipotekarna Banka on trade finance, multilateral support, digital transition in Montenegro Trade Finance Global (TFG) discusses avenues to promote more accessible trade finance tools in South-East Europe. 
faces of trade the people behind the policies PODCAST|Faces of trade: the people behind the policies Changing this mindset and highlighting the human lives behind international trade policy is what Clara Weinhardt, assistant professor in international relations at Maastricht University, hopes to do with the Faces of Trade Diplomacy project.
Has asset management embraced trade finance featured VIDEO: Has asset management embraced trade finance and what more is left to be done? Trade Finance Global (TFG) spoke with Jason Barrass, chief commercial officer at ARC Ratings to learn more about the role that credit rating agencies can play in this shift,
Debt utilisation in European SMEs Debt utilisation in European SMEs Trade Finance Global (TFG) surveyed firms throughout Europe to gain an understanding of SMEs’ trade finance usage norms and their propensity to pay for new or additional trade finance products and services.
Press release SME TF research 2022 Is SME trade finance viable? A European outlook Despite high inflation, record energy prices, and geopolitical uncertainty, demand for trade finance SMEs is on the rise.
Safe keeping: The promise of government-controlled European strategic gas reserves Safe keeping: The promise of government-controlled European strategic gas reserves After record-high gas prices and extreme price volatility in Q4 2021, European policymakers are now warming to the idea of a procurement rethink
2021 Year in Review 2021 – A Year in Review with Trade Finance Global As the clocks struck midnight, we looked back at over 700 articles, handpicking our favourite stories that made the headlines in 2021
Baris Kalay ‘No turning back’ - Bank of America’s Baris Kalay on trade digitalisation after COVID-19 VIDEO: ‘No turning back’ – Bank of America’s Baris Kalay on trade digitalisation after COVID-19 Baris Kalay, head of trade and supply chain finance for Europe, Middle East, and Africa (EMEA) at Bank of America, caught up with TFG’s Deepesh Patel at ITFA’s Annual Conference held in Bristol, England. 
Brexit could cost UK exporters £25bn as full Covid recovery pushed back to 2023 Report: Brexit could cost UK exporters £25bn as full Covid recovery pushed back to 2023 The UK’s exporters could face a Brexit bill worth as much as £25bn in lost revenues in 2021, according to a new report by Euler Hermes.

Videos – Trade Finance

Trade Finance – Frequently Asked Questions

What types of Trade & Receivables Finance does TFG offer?

TFG assists companies to access trade and receivables finance through our relationships with 270+ banks, funds and alternative finance houses.

We assist specialist companies to scale their trade volumes, by matching them with appropriate financing structures – based on geographies, products, sector and trade cycles. Contact us to find out more.

Trade Finance & Stock Finance

  • Trade Finance (Purchase Order Finance)
  • Stock Finance
  • Pre Export Finance
  • Import & Export Finance
  • Structured Commodity Finance
  • Letters of Credit
  • Bonds & Guarantees

Receivables Finance & Invoice Finance

  • Receivables Purchase
  • Invoice Finance
  • Discounting
  • Factoring
  • Supply Chain Finance

Specialist Trade & Receivables Finance

  • Borrowing Base Facilities
  • Back-To-Back LC Lines
  • Long Dated Receivables – Media, Sport
  • Revolving Credit Facilities (RCF)
What is the process for applying for trade finance?

1. Application

The initial ‘credit’ application drives the process when applying for credit.

Lenders will often ask for information on current assets or collateral that the business owns, including debt and overdrafts, assets that the company or directors own (property, equipment, invoices).

2. Evaluating the Application

The evaluation process will normally involve some kind of credit scoring process, taking into account any vulnerabilities such as the market the business is entering, probability of default and even the integrity and quality of management.

3. Negotiation

Eligible SMEs applying for trade finance can negotiate terms with lenders. An SME’s aim with a lender is to secure finance on the most favourable terms and price. Some of the terms that can be negotiated can include fees and fixed charges, as well as interest rates.

4. The Approval Process and Documentation of a Loan

Typically, the account officer who initially deals with the applicant and collects all of the documentation will do an initial credit and risk analysis. This then goes to a specific committee or the next level of credit authority for approval. If the loan is agreed (on a preliminary basis) it goes to the legal team to ensure that collateral can be secured/ protected and to mitigate any risks in the case of default.

Read our full ‘trade finance application process’ here.

Strategic Partners:

Get in touch with our Netherlands trade team

Speak to our trade finance team

Quick Links

Latest Netherlands feature from Trade Finance Talks – Trade in Continental Europe

Download our free trade finance guide



Latest Netherlands Trade News

20Jul

Debt utilisation in European SMEs

0 Comments

Trade Finance Global (TFG) surveyed firms throughout Europe to gain an understanding of SMEs’ trade finance usage norms and their… Read More →

19Jul

Is SME trade finance viable? A European outlook

0 Comments

Despite high inflation, record energy prices, and geopolitical uncertainty, demand for trade finance SMEs is on the rise…. Read More →

24Feb

Safe keeping: The promise of government-controlled European strategic gas reserves

0 Comments

After record-high gas prices and extreme price volatility in Q4 2021, European policymakers are now warming to the idea of… Read More →

28Jan

Rabobank goes live with Surecomp’s end-to-end digital trade finance solution

0 Comments

Surecomp, a Canada-based trade finance solutions provider, has announced that its major software tie-up with Netherlands’ Rabobank is now live…. Read More →

12Jan

ABN AMRO praises CBA’s IBAS GTF solution for ‘seamless transition’ to new SWIFT messaging types

0 Comments

ABN AMRO Bank has said that it was rewarded for its early preparation for SWIFT trade finance changes, thanks to… Read More →

31Dec

2021 – A Year in Review with Trade Finance Global

0 Comments

As the clocks struck midnight, we looked back at over 700 articles, handpicking our favourite stories that made the headlines… Read More →

04Nov

Gunvor USA closes $1.33bn borrowing base facility

0 Comments

Gunvor USA, a subsidiary of Swiss commodities trader Gunvor Group, has closed the syndication of its $1.33 billion borrowing base… Read More →

01Nov

VIDEO: ‘No turning back’ – Bank of America’s Baris Kalay on trade digitalisation after COVID-19

0 Comments

Baris Kalay, head of trade and supply chain finance for Europe, Middle East, and Africa (EMEA) at Bank of America,… Read More →

21Apr

FCI reports 6.6% drop in global factoring statistics in 2020

0 Comments

The first estimates for the factoring industry worldwide in 2020 have been announced today by the FCI’s Peter Mulroy. Factoring… Read More →

12Jan

Report: Brexit could cost UK exporters £25bn as full Covid recovery pushed back to 2023

0 Comments

The UK’s exporters could face a Brexit bill worth as much as £25bn in lost revenues in 2021, according to… Read More →

17Nov

The application of blockchain in trade finance: opportunities and challenges

0 Comments

This article discusses the potential benefits of using blockchain technology for trade finance activities and highlights the significant challenges facing… Read More →

06Nov

EUF and FCI held their first online EU Factoring Summit

0 Comments

EUF plays an important role for our industry today more than ever and confirming FCI’s support regarding the lobbying of… Read More →

02Nov

Who’s Who? 7 initiatives in shipping, freight and supply chain using DLT & blockchain

0 Comments

Freight forwarding, shipping and logistics are undergoing a digital makeover. Connecting the dots, enabling traceability and increasing transparency between parties… Read More →

15Oct

Podcast: FCI – Views from the Board, Factoring and Receivables

0 Comments

TFG’s Deepesh Patel caught up with FCI’s Chairman, Mr. Patrick de Villepin, and FCI Vice Chairman, Mrs. Daniela Bonzanini, on… Read More →

25Jun

FCI publishes the 2020 Global Factoring Annual Review

0 Comments

The FCI Annual Review is a globally recognised publication in the world of Factoring and Receivables Finance. … Read More →

16Jun

Coface Insights: Business insolvencies in Europe – amendments to legal procedures temporarily postpone due dates

0 Comments

The economic consequences of the COVID-19 pandemic are of an unprecedented scale in Europe. The twin supply-demand shock has resulted… Read More →

27May

Quarter of SME Merchants were Borrowing Funds to Pay Business Costs or Salaries – Even Before Covid-19

0 Comments

London, 27th May 2020 – Europe-wide research commissioned by innovative financial infrastructure provider Banking Circle has found that nearly two… Read More →

10Mar

NEWS: Global Factoring Industry Grows 5% to €2.9b in 2019, FCI

0 Comments

The first estimates for the factoring industry worldwide in 2019 have been announced today by the FCI Secretary General at… Read More →

Visit our Global Hubs

TFG in Translation

About the Author

Deepesh Patel is Editorial Director at Trade Finance Global (TFG). In this role, Deepesh leads efforts in developing TFG’s brand, relationships and strategic direction in key markets, including the UK, US, Singapore, Dubai and Hong Kong.

Deepesh regularly chairs and speaks at international industry events with the WTO, BCR, Excred, TXF, The Economist and Reuters, as well as industry associations including ICC, FCI, ITFA, ICISA and BAFT.

Deepesh is the host of the ‘Trade Finance Talks’ podcast and ‘Trade Finance Talks TV’. He is co-author of ‘Blockchain for Trade: A Reality Check’ with the ICC and the WTO, alongside other industry research.

In addition to his work at TFG, Deepesh is a Strategic Advisor for WOA, and works closely with ITFA. He also sits on the Fintech Working Group of the Standardised Trust.

Prior to TFG, Deepesh worked at Travelex where he was responsible for the cards business and the Travelex Money app in Europe, NAM, UK and Brazil. Deepesh is Chair of Governors and co-opted LA Governor of the Wyvern Federation, which has responsibility for 5 primary schools in South London.

Back to Top