Trade Finance Gap
There are many cases when trade is not taking place because of demand/supply shortfall for trade finance instruments such as letters of credit, documentary collections, bank guarantees, factoring, and supply chain finance solutions.
Severity & Impact of That Challenge
The Asian Development Bank (ADB) has estimated that Gap to amount to $ 2.5 trillion with many economists now estimating it at well over $3 trillion. SMEs experience higher rejection rates for trade finance requests compared to larger corporations, often in the range of 40 – 45%.
Four reasons for the Trade Finance Gap
1.Regulatory Constraints: Strict regulatory requirements and capital controls may limit banks’ ability or willingness to extend trade credit.
2.Risk Perception: Lenders’ concerns about political, economic, or credit risks in certain regions or sectors can lead to reduced availability of credit.
3.Lack of Information: Insufficient access to reliable information about trading partners or market conditions can make financial institutions hesitant to provide funding.
4.Cost and Complexity: The process of financing international transactions can be complex and costly, deterring banks from offering such services.
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New Solution
New Solution
Based on decades of experience of fixing order to cash processes, TradinLoop founders have designed on online platform that addresses these root causes at scale
New Solution
New Solution
Based on decades of experience of fixing order to cash processes, TradinLoop founders have designed on online platform that addresses these
root causes at scale
Benefits to CFOs
TradinLoop arranges the optimal Trade Finance solution for Buyer or Seller of both in coordination with the financier and trade credit insurer, support and report on its execution
Seller Use Case
Seller Use Case
As an international seller using TradinLoop.com, securing Pre-Shipment Finance ensures you have the working capital needed to produce, package, and prepare goods before they are shipped to buyers. By leveraging TradinLoop’s secure platform, you can request financing against confirmed purchase orders, giving you immediate cash flow to pay suppliers, manage labor costs, and meet production deadlines. This upfront capital helps you fulfill orders more reliably, increase volume, and negotiate better supplier terms, all while providing confidence to your buyers that their orders will be completed on time and to specification.
Buyer Use Case
Buyer Use Case
As an international buyer using TradinLoop.com, Import Finance provides you with the liquidity to purchase goods from overseas suppliers while maintaining healthy cash flow and mitigating payment risk. By leveraging TradinLoop’s secure platform, you can access short-term financing tailored to your specific import transaction, enabling you to pay suppliers promptly, negotiate better pricing, and avoid tying up working capital prematurely. This flexible funding solution helps you streamline procurement, minimize shipment delays, and maintain a smooth flow of inventory—ultimately giving you a competitive edge in global trade.
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