Venezuela is the world’s 122nd largest import and the world’s 88th largest economy (in terms of GDP). Petroleum and food products dominate the Venezuelan import industry Venezuela experienced a pronounced decline in import levels due to COVID-19, but recent figures have shown a slight reversal in this trend. 

The Venezuelan economy is heavily dependent on foreign trade, as imports and exports account for more than 65% of GDP. The United States and China represent the two largest exporters to Venezuela, and are responsible for more than 40% of trade into Venezuela.

Chart Showing GDP Growth Compared to rest of world

Export finance is a revolving facility which lenders offer financing options– it enables businesses to buy goods and can help ease cash flow problems.

Often, an alternative financier will fund all of the cost of the goods, including charges (e.g. taxes).

Trade finance offers benefits over more traditional bank funding such as bridging mortgages or business loans. Trade finance provides quick funding without affecting existing bank relationships.

How does it work?

If you’re a company importing or exporting goods around the world, then a trade finance facility would help you to fund this through offering a LC (letter of credit) or some form of cash advance.

I’m looking to export to Venezuela, how can Trade Finance Global help, and how does it work?

If you’re looking to export inventory to other countries, you may require finance for exporting, which is a commercial agreement between you (the exporter), and the importer. An alternative financier will advance you the cost of producing the stock supplies that you are exporting (as a loan), either once you have sent the goods, or before producing them. Once the importer has received the stock supplies and pays you for the import, you will repay the advance from the export bank over an agreed period.