ESSENTIAL TRADE FINANCETransactional Trade Finance
Unlike conventional financial institutions that primarily provide funds through loans, our approach involves stepping into deals as the principal of goods, recognizing that success in commodities requires more than just capital.
Сomprehensive trade support, industry insights, market due diligence and international profound expertise – that’s precisely what we deliver on the top.
The Most In-Demand
Trade Finance
According to the latest figures published by Asian Development Bank, the resulted trade finance gap grew to a record $2.5 trillion in 2022 from $1.7 trillion two years earlier.
Based on our business results and market analysis, transactional trade finance, often also called supply chain finance, is the most popular financial instrument among the commodity industry.
The movement of goods especially across borders is often a lengthy and complex process. During this journey, commodities are exposed to a myriad of risks, including geopolitical uncertainties, fluctuations in markets and potential disruptions in transportation. Financing goods in transit becomes a necessity to mitigate these risks, ensure the smooth trade flow and enable businesses to increase turnover while developing new destinations.
This type of financing refers to activities and instruments involved in facilitating individual trade transactions. We used to describe it as self-liquidating, secured, short-term structure.
- Securing the transaction is essential. This might be covered by collaterals, pledges, account receivables or title of goods.
- Deal’s structure is always back-to-back as per Incoterms 2020 that allowing to mitigate specific risks for all counterparts involved within this type of financing.
- All trade related operations are usually done by Seller/Exporter and/or Buyer/Importer. If required from customer’s or from risk perspective, we may also provide logistic services for the trade.
- We deliver outstanding due diligence and professional market analytics for any goods financed.
- Best suits if aim is to grow business within existing supply chain and over $300.000 trade finance is required.
- Letters of Credit (LCs): LCs are a widely used instrument in commodity trade financing. They provide a guarantee from the buyer’s bank to the seller that payment will be made upon the presentation of specified documents, thereby reducing the risk for everyone.
- Bank Guarantees: This assure the parties involved that certain financial obligations will be met, providing a safety net against potential defaults or unforeseen circumstances.
- Cash advance and open account: These instruments are considered to be the high-risk options. That’s why securing transactions via collaterals and/or account receivables is inevitably required.
MAXWER GROUP AG
Switzerland
OUR LOCATIONSWhere to find us?
MAXWER MIDDLE EAST
Dubai, UAE
© Maxwer Group AG. All rights reserved, 2024
© Maxwer Group AG. All rights reserved, 2024