Finance services

Solution overview (trade finance services for small businesses)

One of the biggest challenges for small and medium-sized business enterprises globally has been the lack of access to the kind of financial services readily offered by banks to multinationals.

Today, businesses of any size can think and trade globally, but the services to support them may not be available through their bank. A $ 100 million or $ 250 million business may have a few banking relationships. Small businesses may have only one banking relationship.

Your banker and other lenders may not be able to provide you with the credit you need to conduct foreign exchange (FX) transactions, cross-border payments, debt financing, and international collections.

This is a real challenge that companies are facing.

International Trade Services has been at a very important crossroads for many banks for several years – as significant personnel and regulatory issues continue to weigh on business and technology investments, but lack a solid business case.

Apart from the large global and super-regional banks that offer trade finance, risk management, international payments and other international services, many banks do not have their own dedicated staff, technology or resources to offer a suite of international services to their clients. based. While some of the larger banks offer outsourcing services to other banks, there is no specific target to help businesses in the $ 50 million to $ 1 billion sales segment. The cost to serve and the capital to devote usually outweighs a dedicated effort to build capacity.

There is a persistent message in the market that there is a large trade finance gap for small businesses. This coincides with surveys by the Asian Development Bank and the International Chamber of Commerce which examine rejection rates reported by banks for trade finance transactions and find that the global trade finance gap has remained large and stable at $ 1.5 trillion. The International Finance Corporation, part of the World Bank, estimates a funding gap of US $ 4.7 trillion for small and medium-sized enterprises (SMEs) in emerging markets.

Ebury was launched in 2009 to help small and medium-sized businesses trade across borders. Ebury is able to bundle trade finance and risk management capabilities that are normally only available to large companies over $ 1 billion and provide these kinds of services to small businesses. Ebury tries to deliver what large multinational banks offer to small businesses.

Let’s take a look at the company and its solution.

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