Trade Finance Solutions: Unlocking Cash Flow for SMEs

Trade Finance Solutions: Bridging the Gap for Manufacturers

Manufacturers all over the world work on a credit basis, which causes challenges for their cash flow. While producing to fill an order, the manufacturer incurs the full cost, including materials, labor, and other inputs. Once production is finished, they ship it out, and it takes between 10 and 90 days to reach the buyer, who can take up to 60 days to pay the amount they owe. This could result in a gap of up to 150 days, which, for many small and medium enterprises (SMEs), can greatly impair their cash flow. On top of this, there is also the risk of the buyer’s delayed payment, non-payment, or insolvency.