#tradefinance

3 Common Types of Trade Finance Products Explained There are several definitions of trade finance available online, and the terminology employed is intriguing. It is characterised as a "science" and "an imprecise term covering a variety of different activities." Both are correct, as is the nature of these things. Managing the money required for international trade is a precise science. However, within this science, Trade Finance Service has access to a vast range of tools that affect how cash, credit, investments, and other assets can be used for trade. Common Types of Trade Finance Products: 1. Letter of Credit A letter of credit is a payment pledge provided by a bank on behalf of the importing client. It's a common trade finance document that you should be familiar with. Essentially, it is a commitment by the bank to pay the exporter the money within a specified time frame and under the terms and circumstances agreed upon. It enables sellers and buyers to mitigate some of the inherent hazards of international trade, including currency fluctuations, non-payment, and economic instability. 2. Purchase Order (PO) Finance Purchase Order (PO) financing is intended for SMEs that are experiencing inefficiency in their cash flow. To put it simply, it gives funds to pay suppliers with the validated purchase order in order to ensure seamless cash flow. It enables firms to accept a huge volume of orders while adjusting the lending basis to match their specific requirements. This is especially true for SMEs, who frequently get a significant amount of orders but lack the necessary working capital to process them. That is exactly what it does. Even if the volume of orders reduces, there are no ties, so you can quit using it whenever you want. Read more: https://www.emeriobanque.com/blogs/3-common-types-of-trade-finance-products-explained #Tradefinance #letterofcredit #BankGuarantee #supplychainfinance #SMEs #internationaltrade

Wema Bank taps Kachasi Trade Finance to improve efficiency via automation Wema Bank has gone live on Kachasi Trade Finance Software to enable the achievement of full automation of trade finance operations. Trade finance is a phrase used to describe different strategies that are employed to make international trade easier. The market share is expected to increase by $12.20 billion from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 4.38 percent. Kachasi, owned by Union Systems, is the first indigenous trade finance software application built to automate the entire lifecycle of international and domestic trade finance operations, and it is the result of over 20 years of experience implementing and customising various international trade finance software applications for banks across Africa. Wema Bank’s journey with the software began in March 2022. As a first of its kind, Kachasi Trade Finance Software comes with intuitive design and functionalities. “We are pleased to be joining the league of banks around the world that re using technology to transform trde finance operations,” Tajudeen Bakare, divisional Head of Operations and General Service, Wema Bank. “This project will significantly reduce turnaround time improve operational efficiency, and unlock new revenue streas for the bank. It will also improve the bank’s ability to respond quickly to regulatory policies and updates.” Read more: https://ngulminthanglhanghal.wordpress.com/2023/01/18/wema-bank-taps-kachasi-trade-finance-to-improve-efficiency-via-automation/ #finance #Africanfinancialinstitutions #Ngulminthang #tradefinance #WemaBank

African Development Bank Partners with Bank One on Trade Finance The African Development Bank Group is supporting the trade finance efforts of Bank One Limited. The Group will provide a $40 million trade finance package that is meant to help Bank One of Mauritius increase its capacity to provide trade finance to small to medium-sized businesses (SMBs), local corporates and other key sectors in Mauritius and across Africa, the African Development Bank said in a Thursday (Dec. 22) press release. The package includes a $25 million risk participation agreement and a $15 million transaction guarantee, the release said. “Given the cross-sectoral nature of trade, the proposed facility, while leveraging Bank One’s footprint, is expected to enhance the African Development Bank’s efforts to integrate Africa and improve the quality of life for the African people,” African Development Bank Head of Trade Finance Lamin Drammeh said in the release. Africa has an annual “trade finance gap” of $81 billion because SMBs and other domestic firms have greater difficulty accessing trade finance than do multinationals and large local corporates, according to the press release. The African Development Bank aims to reduce that gap by deploying the new transaction guarantee and risk participation agreement with Bank One, which is a leading Mauritian and regional banking for with reach that extends across the continent and globally, the release said. Read more: https://prnewsdistribution.co.uk/african-development-bank-partners-with-bank-one-on-trade-finance #AfricanDevelopmentBank #B2bPayments #CrossborderPayments #DigitalPayments #Smes #TradeFinance #NgulminthangLhanghal

Global Survey On Digital And Sustainable Trade 2023 By UN As per the latest news, the fifth UN Global Survey on Digital and Sustainable Trade Facilitation 2023 has been introduced by the five United Nations Regional Commissions and the United Nations Conference on Trade and Development (UNCTAD). This 2023 edition comprises 60 measures, including two new sets of measures on “Trade Facilitation for e-commerce” and “Wildlife Trade Facilitation”, on international e-commerce and the use of electronic CITES grants and certificates. It keeps on including measures associated with the arrangements of the World Trade Organization’s Trade Facilitation Agreement covering the agricultural area, small and medium enterprises (SMEs), women traders, and trade finance, as well as crisis measures during times of emergencies. The preliminary consequences of the 2023 Survey will be released in July, followed by the final consequences as a Global Report and five Local reports. The above-mentioned survey aims to deliver an overview of the development of the execution of measures on digital and sustainable trade facilitation and intuitive data to help nations in growing their national trade facilitation strategies, such as the National Trade Facilitation Roadmap of the Kyrgyz Republic 2021–2025. Read more: https://www.emeriobanque.com/news/global-survey-on-digital-and-sustainable-trade-2023-by-un #SMEs #UNGlobalSurvey #DigitalAndSustainableTrade2023 #tradefinance #globalsupplychains

EBID Secures $130m Funding To Curb Trade Financing Gap in Africa As per the latest news, the ECOWAS Bank for Investment and Development (EBID) has revealed a dual-currency trade finance credit line worth around $ 130 million. The funding will be utilized critically to upgrade food security and build up agricultural value chains across West Africa, the AfDB stated in the declaration issued. The granted funds acknowledge the first time it has secured financial support from the African Development Bank (AfDB) which was honored with “Best Multilateral Financial Institution 2021” by Global Finance. The AfDB is facilitating $ 50 million and €50 million to the three-and-a-half-year facility, while the People’s Bank of China is giving a further US$ 30 million through Africa Growing Together Fund - a solution provided by the Chinese central bank yet managed by the AFDB. According to the AfDB’s head of trade finance, Lamin Drammeh, “Working with the EBID should assist with further developing its access to trade finance in the Ecowas area, which consists of 15 West African nations.” Read more: https://www.emeriobanque.com/news/ebid-secures-130-m-dollar-funding-to-curb-trade-financing-gap-in-africa #ECOWASBank #AfDB #tradefinance #tradefinancegap #SMEs #EBID #GlobalFinance

Commercial Bank Wins ‘Best Trade Finance Provider’ 2023 in Qatar As per the latest news, Commercial Bank, the most innovative digital bank in Qatar has been honored with the “Best Trade Finance Provider in Qatar” by Global Finance for the fourth consecutive year. Global Finance is the world’s major publication that acknowledges distinct contributions to the financial industry. This award recognizes Commercial Bank’s outstanding performance in the trade finance sector and its constant dedication to delivering top-notch financial products and services to its clients. The Bank has been successfully maintaining its position as the “Best Bank In Qatar 2021” by Global Finance. Trade finance plays an essential role in Commercial Bank’s business tactics, and the Bank has a well-established proven track record of enabling its clients to navigate the intricacies of international trade and minimize risks. The reason behind the Commercial Bank’s success in trade finance is none other than its commitment to innovation and its emphasis on delivering the best possible financial products and services to its clients. The Bank is dedicated to searching for opportunities to improve its trade finance offerings and fulfilling the advanced requirements of its clients. Read more: https://www.emeriobanque.com/news/commercial-bank-in-qatar-wins-best-trade-finance-provider-2023 #CommercialBank #BestTradeFinanceProviderinQata #financialproducts #internationaltrade #tradefinance

US To Hold Trade Talks with Taiwan In A Move Blasted By China As per the recent news, US trade officials have visited Taiwan to start off four days of negotiations over a proposed trade arrangement that has drawn resistance from the People’s Republic of China. The meeting which is scheduled between US and Taiwanese negotiators in Taipei marks the first formal discussion over a text of a trade agreement after a beginning round of meetings in November. The discussion will be focused on proposed deals covering anti-corruption standards, trade by SMEs, administrative practices, and trade assistance. As the U.S. and Taiwan agree in some of these areas, the two sides may declare independent arrangements regarding those subjects for what Taiwanese authorities called an “early harvest” as momentum works towards an extensive trade agreement. These two areas that have demonstrated more challenges between the US and Taiwan are - agriculture & digital trade which are likely to take longer to discuss. The potential trade agreement between Taiwan and the US has disturbed Chinese authorities, a representative for the Chinese Embassy blamed Americans for “wrongdoings” by even arranging the deal, as per reported. Read more: https://www.axioscreditbank.com/blogs/us-to-hold-trade-talks-with-taiwan-in-a-move-blasted-by-china #UStrade #tradearrangement #SMEs #PRC #USagencies #tradefinance

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

Egypt Seeks $1.5 Billion Funding From ITFC, CNBC Arabia Reports As per the recent CNBC Arabia reports, Egypt has entered into a financing arrangement with the ITFC (International Islamic Trade Finance Corporation) worth $1.5 billion to raise funds for its trading including imports of energy products & crucial commodities. Last year, a similar financial arrangement came into effect by Egypt with ITFC worth $1.5 billion, which is headquartered in Jeddah, Saudi Arabia and often provides funds to Egypt’s commodities imports, including grains and petroleum. Egypt's Planning Minister Hala al-Saeed stated at the signing ceremony in Cairo that the funding collaboration portfolio between Egypt and the organization aggregates $14.5 billion so far, according to a statement made by the Planning ministry. Earlier, ICIEC partnered with Egypt & AATB to support economic development. Read more: https://www.emeriobanque.com/news/egypt-seeks-1-5-billion-dollar-funding-from-itfc-cnbc-arabia-reports #Egypt #TradeFinanceCorporation #CNBCArabia #financingarrangement #ITFC #TradeFinance