#TradeFinanceServices

Get Trade Finance Services As A Short Term Working Capital A type of financing known as trade finance is created especially to support transactions involving international trade. It gives companies that import and export products and services access to short-term working capital, assisting them in managing the risks involved in international trade. Short-term working cash can be obtained through a variety of trade finance services, including: 1. Letters of Credit: A letter of credit is a document that, under certain circumstances, a bank issues to a seller of products or services to guarantee payment. This can lessen the seller's risk of not getting paid and give them the working capital they require to complete the transaction. 2. Documentary Collections: A documentary collection is a payment strategy in which the buyer and seller trade documents and money through the help of banks. Given that the seller can get paid after presenting the required paperwork, this can be a helpful way to get short-term operating capital. 3. Invoice Financing: Getting short-term working cash through invoice financing entails using invoices as collateral. Businesses that have unpaid invoices that are approaching their due date but require cash sooner to meet their own financial responsibilities may find this to be a useful option. 4. Supply Chain Finance: Financing the complete supply chain, from raw materials to finished goods, is known as supply chain finance. Given that it offers financing throughout the entire production cycle, this can be a helpful way to acquire short-term working capital. In general, trade finance services can be a helpful way for companies involved in international trade to get short-term operating capital. Trade finance enables companies to manage their cash flow and lower the risks involved in cross-border transactions by giving them access to financing that is particularly suited for such transactions. Visit us: https://www.emeriobanque.com/trade-finance-services #TradeFinanceServices #FinanceServices #SupplyChainFinance #LettersofCredit #DocumentaryCollections

How Investment in Trade Finance Can Help SMEs Thrive? A healthy trading system depends on the availability of finance. Up to 80% of current Global Trade Finance is backed by credit insurance or other financing. However, there are sizable gaps in the available resources, making it difficult for many businesses to access the necessary financial tools. With sufficient trade finance, businesses can have the resources they need to trade and grow, taking advantage of opportunities for development and expansion. Small and medium-sized businesses (SMEs) need help finding financing with favourable terms. This is especially concerning because SMEs constitute a significant force in trade, employment, and economic growth. According to research, SMEs encounter these obstacles in developed and developing nations, but the difficulties are most significant in lower-income countries. Trade digitalization has no definition, but it typically entails the digital twining of supply chains, the dematerialization of documents, and the digital data exchange. It means adding an electronic or computerized layer to business processes. A key distinction in the new reality is that digitalization also refers to using digital channels to assist SMEs in creating value. By doing away with paper-based transactions, SMEs can increase productivity and transparency while avoiding delays brought on by physical documents getting misplaced or destroyed along the way. Read more: https://www.emeriobanque.com/blogs/how-investment-in-trade-finance-can-help-smes-thrive #GlobalTradeFinance #tradefinance #supplychains #SMEs #TradeFinanceServices #Letterofcredit #Tradefinanceinstruments

What Is The Difference Between Bank Guarantee And Letter Of Credit? Being in international business, you might be very well aware of the concept of bank guarantee and letter of credit but sometimes, it becomes difficult to differentiate between these two as both the terminologies look similar but they are very different from each other. Both the financial instruments are the legal guarantees from the lending institution that the exporter will be paid on-time for delivered goods & services. Plus, both assure that the importer will be able to pay the debt, no matter what the financial circumstances are. But in case, if the buyer is unable to pay, the lending institution will step in and pay the amount. Both instruments provide financial assistance and reduce risk factors and grow global transactions. Difference Between Bank Guarantee And Letter Of Credit So, what is the difference? The key difference is that letters of credit are widely used in international trade & transactions due to the risk factors involved in global trade, for example, distance, different laws, and unfamiliarity of the parties to the contract towards one another, etc. While bank guarantees, on the other hand, are often used in real estate and infrastructure contacts to mitigate the credit risks in the domestic market. Let’s understand the difference between their definitions. 1. What Is A Letter Of Credit? 2. What Is A Bank Guarantee? Emerio Banque is a legal and private financial institution specializing in international trade finance services, import/ export, letter of credit, and other offshore banking services. Read more: https://www.emeriobanque.com/blogs/what-is-the-difference-between-bank-guarantee-and-letter-of-credit #letterofcreditandbankguarantee #internationaltrade #bankguarantee #letterofcredit #tradefinanceservices

How Investing In Trade Finance Can Help SMEs Uplift? 1. The trade finance gap has reached $1.7 trillion, excessively affecting small & medium-sized enterprises (SMEs). 2. New technologies can have a vital role in transforming trade finance assets into profitable market products. 3. A multitasker approach is essential to ensure the easy accessibility of trade finance instruments for SMEs. Trade acts as an accelerator that gives a boost to a country’s economy, 80-90% of international trade requires financing out of which, around 90% of the organizations are owned by SMEs and over half of the jobs globally according to the World Bank. Generally, these are the SMEs that are underserved and lack reasonable trade finance. One thing is clear: unless SMEs are capable of executing trade transactions with the support of financing, the economy cannot improve. According to the latest report issued by Asian Development Bank (ADB), SMEs are adversely affected by the $1.7 trillion trade finance gap ie. the difference between the number of trade finance applications by SMEs involved in global transactions and the number of approvals. As per the data, SMEs face 40% of these rejections which is quite higher than their share of applications. In this regard, ADB partnered with Seabank to expand trade finance in Vietnam. Read more: https://www.emeriobanque.com/news/investing-in-trade-finance-can-help-smes-uplift #tradefinancegap #tradetransactions #SMEs #tradefinanceservices #blockchaintechnology