TRADE FINANCE
The growth in market globalization and cross-border trade has created new opportunities and challenges for businesses worldwide. To succeed in this rapidly changing environment, you need the support of an innovative financial partner with an in-depth understanding of today’s global business dynamics. GM Capital Trade Services and Finance offers you a single source for meeting these challenges. Our wide range of solutions and capabilities are designed to help you effectively manage risk and optimize cash flows – all supported by the unmatched global reach and local knowledge of GM Capital.
Trade Finance is a term for the provision of finance in order to enable goods to be purchased in order to satisfy an order. It is provided by the financier to bridge the funding gap between purchase and sale. GM Capital specialists in this area help companies achieve the growth that is so often in their potential but beyond the scope of traditional financiers i.e. banks. Trade finance facilities are complimentary to your existing funding arrangements and enable you to take on additional business, which would otherwise be lost.
Two developments are likely to influence the direction of trade services in the medium term: a more risk-averse culture coming out of the credit crisis; and, despite that, a continuing trend away from traditional documentary instruments toward open account trading. Current estimates suggest that some 85% of world trade is now being conducted on open account. The tightening of credit globally represents both a challenge and an opportunity to the banks. Although the majority of cross-border open account trade is conducted corporate-to corporate, evidence suggests that a significant percentage will migrate to a bank-assisted model over the coming years. There is a growing demand for banks to provide greater innovation in the developing world of supply chain solutions.