Trade is a risky business
Trade is inherently risky in three main areas:
1. Commercial risks from dealing making with the various counter-parties to keeping them committed
2. Operational risks from ordering to delivery, there are hundreds of possible disruptions to account for
3. Administrative risks from purchase order to payment reconciliations, there are hundreds of processes cutting across organisations and systems which can go wrong along the way and over time
Severity of Trade Risks: a rising $10 Trillion problem
The compound effect of the Trade Risk is estimated to exceed $ 10 Trillion, broken down as follows:
1.Late payments of commercial transactions cost $40 Billion per year (World Bank) with $4.2 Trillion at risk (Allianz), growing at CAGR 12%
2.Trade Finance Gap amounts to $2.5 Trillion per year Globally, limiting trade between willing parties (Asian Development Bank), growing at CAGR 13.6%
3.Sustainable Financing Gap ranges from $3 to $ 5 trillion (United Nations)
4.Green Washing costs could exceed $1bn annually in fines (Sustainalytics)
Limitation of current set-ups
If risk is as old as trade, the support structures have dramatically changed over time (from containerization to digitization) but are still largely imperfect:
1. Complicated regulations, tariffs and non-tariff barriers with frequent changes
2. Complexity of information systems, hard to connect
3. Logistics frictions: disruptions, congestions, costs, bureaucracy, skills gaps, diversity of practices
4. Vulnerability to failures, frauds and attacks
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De-risk your Trade
De-risk your Trade
Based on decades of experience of de-risking Supply Chains, TradinLoop founders have designed on online platform that de-risks Commercial Transactions at scale
De-risk your Trade
De-risk your Trade
Based on decades of experience of of de-risking Supply Chains, TradinLoop founders have designed on online platform that de-risks Commercial Transactions at scale
Benefits to CFOs
TradinLoop's unique quantified holistic risk modelling enables 100% control over Trade Risks and helps CFOs safeguard cash flows and profitability by mitigating financial risks across the entire spectrum, including for cross-border transactions. It also enhances strategic decision-making through improved visibility and management of potential trade disruptions.
Use Case
Use Case
Take this Agri-food seller with an aversion to risks: by using TradinLoop, they were able to assess, quantify, mitigate and transfer all their risks not just when making the deal but also throughout the commercial transaction.
This enabled them to win new customers, unlocking new international markets with zero-risk transactions until full payment collection and reconciliation.
This is part of the bridging the 2.5tn Trade Gap
Start your Friction - Free Journey
Towards Friction-Free Trade
TradinLoop is an innovative commercial transaction orchestration platform
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