Facilitating international trade for small and medium sized businesses
Supply chain issues, changes in manufacturing patterns and fraud can all impact overseas trade. Euro Exim Bank answers these problems for their customers
Without international trade, our everyday lives would look very different: electrical goods manufactured in the Far East, textiles made in Asia and our kitchens full of foods from around the world.
Supply chain issues have made the headlines recently, reminding us all how important our links with businesses overseas are.
Dr. Graham Bright, Head of Compliance and Operations Euro Exim Bank, says that the complex web of supply hinges on two simple principles, namely reputation and connection:
“The challenge we see is that smaller institutions in emerging jurisdictions and potentially landlocked countries, are ready but unable through lack of liquidity, poor infrastructure, trust and restricted trade practices to effectively import or contribute to new supply chains across the globe.”
Bright says that there are three factors impacting a business’s ability to trade internationally:
“The first one is access to liquidity. The second one is looking at the whole of the ecosystem. The third one is currency. So what we are always trying to do is minimize the risk and enable many people in different jurisdictions to have that opportunity to trade effectively and competitively in international markets.”
Established in 2017, Euro Exim Bank is one of the fastest-growing international financial institutions thanks to their expertise in enabling buyers across the globe to import goods and services. Bright says that the bank’s ambition to become the go-to trade finance institution globally is being matched with action:
“EEB is building the largest sales force for trade finance on the planet. We're facilitating small and medium enterprises to buy their raw materials for manufacturing processes, contributing to local revenue, and finished goods for re-export competitively and productively. In these challenging times of rising food, energy, container and general prices, we are dedicated to enabling trade to continue economically and efficiently, long term. That's why we are building strong relationships, trust, and confidence with the buyers to make sure we meet client expectations and handle repeat business as well.”
EEB Looks much like any other financial provider, by agreeing funding based on a promise to deliver:
“It always starts with a buyer ordering from abroad, with a pro forma invoice, a sales contract or purchase order. We then produce our first draft with all the terms, conditions and clauses on it, for agreement between the buyer and seller that the new document truly reflects the trade, delivery and settlement details. ”
Bright warns that all organizations need to carry out extended due diligence and checks to detect and combat fraud, non-payment, theft and corruption, which are all too common in international trade:
“One such incident featured in news recently was a consignment of high value copper wire, scheduled to arrive by container on a certain vessel. When it initially left the loading port, there was an independent inspection certificate which confirmed type, weight, and packaging. When it arrived at the ultimate destination, whilst the container weight matched, it was full of stones, painted copper. With issues of responsibility and liability, buyers must also apply insurance to cover potential losses in transit as well as insurance to cover the whole trade transaction.
If specified in the terms of an instrument, the quality of what you're receiving should be exactly the same as what you think you're going to get.”
As part of its program of embracing technology EEB has partnering with firms specialising in fraud detection, ID verification, company financial status, compliance and due diligence solutions, to protect all parties through the transaction lifecycle, ultimately ensuring with maximum information, that clients have the means and intent to settle transactions.
On our road to full digitalization of processes and digital documents, our strategy has been to underpin our systems with a blockchain environment inside our home-built trade platform. This enables the bank to take an optimal approach to creating, tracking and settling instruments with cost effective, immutable, trusted, rapid, standardised shareable golden records.
This approach, linked with our global agent and partner network expansion has seen the bank become a trusted partner for SMEs which would previously have thought twice about engagement in complex international trade. Bright says that EEB is reaching out across industries, national and international companies with a range of cost-effective proven products and services truly facilitating trade. This expertise has not gone unnoticed.
“We are a regular contributor in our capacity as speakers in international conferences and trade events at GTR, TXF etc. in Asia, Africa and the Middle East, featured on public sector television, and internet channels such as YouTube and in prestigious publications including Forbes, WSJ, The European and World Commerce Review.
Our trade focus supports the many thousands of mid-sized and smaller corporates, and our expertise in trade is regularly sought to provide thought leadership articles, regular blogs and industry updates, all of which are made available through expanding media channels.”
We are delighted to be viewed as one of the go-to resources to speak and educate regarding fraud, post-covid trade recovery, regional free trade agreements, and blockchain in trade.”
Bright, predicting an increase in trade back to pre-COVID levels, says that there are systemic shifts within the supply chain that make EEB’s offer indispensable:
“In the near future, whilst China will remain the largest exporter, there is a growing need to manufacture there to satisfy its own home demand. With ongoing international conflicts, rising prices for energy, foodstuffs and general inflation, companies wanting to mitigate risk are looking for new sources of goods to satisfy their own demand. Although steps will have to be taken to increase volume, Africa with its many free trade agreements and more liberal policies to move goods effectively presents a viable alternative, especially for much demanded critical raw minerals and food.
With our ‘on the ground’ network of agents and partners across Africa and the Indian Sub-continent there is greater opportunity to reach new suppliers and buyers.
Graham Bright says that the plans for the future of Euro Exim Bank are simple:
“We want to provide the optimum service, optimum price, optimum value, optimum trust, confidence and best customer experience as market leader, the ‘go-to company’ for any corporate wanting trade finance transactions.”
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