Trade finance has played an important role in keeping our country’s economy healthy and vibrant in recent years. Trade finance solutions are built to assist businesses that trade goods and materials. When there is a time lag between paying foreign suppliers and receiving payments from local customers, businesses may struggle to meet all their financial commitments due to a cash flow mismatch.
International trade finance is essentially the same as local trade financing, but as the name suggests, it deals with international suppliers.
Just like local trade finance, there are two sides in an international trade transaction. A buyer and a seller. The first is the seller (exporter), who requires payment for their goods (e.g., raw material or stock). Secondly a buyer, (importer), who is procuring these items for resell or to use in a manufacturing process. A trade finance solution will settle the seller on behalf of the buyer. The buyer benefits from extended repayment terms while the seller benefits from immediate payment.
International trade financing has many advantages which can help your business in many different aspects such as:
- Enabling businesses to potentially increase their revenue streams as each country you trade in opens up opportunities for increased revenues as well as business growth.
- Creating a competitive advantage against other businesses that are unable to source and finance products in international markets.
- Enabling more favorable cash-flow management as well as working capital management.
- Benefiting from currency exchange rate fluctuations by buying at the right time and fixing costs.
Unfortunately, many small businesses in South Africa, cannot benefit from international trade finance solutions, as they do not meet the onerous credit requirements from the banks and other specialised firms.
Payabill, together with Sasfin Forex, has developed a bespoke credit offering that allows small businesses to access much needed funding, providing vital working capital solutions to enhance and grow their businesses, giving us the edge when it comes to international trade financing.
With Payabill's International Trade Finance solution let us help you grow your business!
To apply, simply click here and follow the onscreen instructions.
