OUTSOURCING TRADE FINANCE:
Outsourcing Trade Finance is for:
  • Clearing and other banks
  • Large corporations
  • Joint ventures incorporating trade finance and / or purchasing
Significant administrative cost reductions and efficiencies can be achieved by clients for all of the above.
Clearing and other banks would eliminate the disproportionately high cost of administering trade finance arrangements for small to medium sized businesses. They would enhance their security by superimposing us, a single larger client with an established track record over the numerous smaller clients. And at the same time continue to open letters of credit and follow underlying transactions, retaining the security of the spread of the outsourced names.

Large corporations would reduce staff and other administrative costs in the specialised area of letters of credit and eliminate the liability, contingent or otherwise, that a letter of credit facility provided by a bank creates on its balance sheet.