Global Projects Finance - We provide financing for Trade and Projects

International Trade

Global Projects Finance Group supports international trade

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.

In relation to export finance and the supply chain, many SMEs play a large role in the running of multinational corporations and larger companies. SMEs require access to finance to fulfill larger contracts, import goods from overseas and create wealth, jobs and develop economies.

We are 100% independent, which gives us the flexibility to work with many types of businesses. By maintaining health business relationship with several banks and financial institutions, we are able to offer tailor-made financial solutions to our clients; not an off the shelf product that inhibits growth or limits opportunities for business. Often the financing solution that is required can be complex, and our job is to our our clients find the most appropriate trade finance solutions for their businesses.

Trade financing includes:
- Lending facilities
- Issuing Letters of Credit (LCs)
- Export factoring (companies receive funds against invoices or accounts receivable)
- Forfaiting (purchasing the receivables or traded goods from an exporter)
- Export credits (to reduce risks to funders when providing trade or supply chain finance)
- Insurance (during delivery and shipping, also covers currency risk and exposure)

The Benefits of Trade Financing
- Facilitates the growth of a business
Cash and working capital are key to the success of any business. Trade finance often helps make a company’s goods or receivables work for them, freeing up and releasing working capital that is tied in stock. Why does this help? You can suddenly offer more competitive terms to win your next business, and not be tied by late payment or lengthy delays between shipping an order and receiving payment. This flexibility is ultimately good for growth and good for your customers. Trade finance is a form of short to medium term working capital solution which uses the security of the stock or goods being exported / imported as a guarantee.

-Increased revenue potential / Higher margins
Trade finance allows buyers to request higher volumes of stock or bigger orders from suppliers, meaning businesses can easily benefit from economies of scale and bulk discounts off volumes. The margin benefits of using trade finance to grow a business can help win competition and increase revenue. Trade finance can also help strengthen the relationship between buyers and sellers, increasing profit margins and profits

Increased efficiency in trades and supply chain
Managing the supply chain is so important for any business. Trade and supply chain finance helps ease out cash constraints or cash gaps, whether it’s the suppliers, customers, third parties, employees or providers, trade finance can help ease and release working capital from the supply chain.

Mitigate risk from suppliers
Trade financing reduces credit and payment risks or bad debt risk on suppliers as the funders take hold over the goods being traded. Trade financing focuses more on the trade than the underlying borrower (not balance sheet led), so small businesses with small balance sheets can trade larger volumes more easily and work with larger end customers.

Diversifies supplier network
Working with other international players allows business owners to diversify their supplier network which increases competition and drives efficiency in markets and supply chains.

Reduces bankruptcy risks
Late payments from debtors, bad debts, excess stock and demanding creditors can have detrimental effects on a business. External financing or revolving credit facilities can ease this pressure and prevent an SME from facing these risks of insolvency.