New Guide for Business Funding Launched by Trade Finance Global

Last week Trade Finance Global launched the ‘Business Finance Guide for SMEs’ which lists sources of finance and funding for SMEs which are growing. The trade finance guide, specifically targeted at business which import and export goods or services.

The guide covers a range of information on debt and loans, bank versus non-bank funding, equity finance, invoice discounting and accounts receivable. In terms of trade finance, the guide contains information on methods of payment, types of trade financing, and pre and post-shipment finance.

Trade financing (also known as supply chain and export finance) is a huge driver of economic development and helps maintain the flow of credit in supply chains. It is predicted that 80-90% of global trade is reliant on trade and supply chain finance, and is estimated to be worth around USD $10 trillion a year.

As a result of the global economic crisis in 2008, export markets reduced in size by around 40-50%, SMEs being the hardest hit. As a result, lending decreased as investor’s appetite for risk decreased, and banks had to reduce the sizes of their loan books.

James Sinclair, at Trade Finance Global, said: “We’re often asked by businesses where they should go to get finance. Often it’s difficult for business owners who are busy running their day-to-day businesses to think about and understand the complexities of business funding, especially when it comes to exporting or importing goods to fulfil large contracts and truly grow internationally.

“We always advise businesses to have a plan first, then search for the best kind of finance which aligns with the business goals.”

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