TRADE CREDIT SERVICES
Industry News & Views
Featured Service Providers
CIT COMMERCIAL SERVICES
CIT Commercial Services CIT Commercial Services is a major US provider of receivable financing and receivable management. Two trade finance services would be of particular interest:
Supply chain finance which allows buyers to extend their payment terms sell their accounts payables to CIT prior to maturity at a small discount.
Receivables factoring which in the case of CIT. Here the seller sells the receivables of CIT approved buyers for a discount to CIT and CIT then collects from the Buyer including on agreed payment terms.
In both cases if the arrangement is “non recourse”, credit insurance is also implicitly included. CIT also offers Bulk Sale of Accounts Receivable and Receivable Exposure Management (REM), which although not strictly trade credit do help to support working capital needs.
AIG PRIME REVENUE
InterNex Capital is a digital lender that offers current asset based Revolving Lines of Credit from $250K to $5MM for general working capital needs. Founded by commercial lending and fintech veterans, InterNex underwrites and funds clients through its integrated technology, data analytics, and credit scoring algorithms. Their market focus is on small businesses with revenues of $1M to $25M, that supply large corporates including manufacturers, wholesalers, distributors, service and waste management companies. The InterNex platform’s goal is to provide seamless integration with customers, partners and capital providers. It digital platform lends iteslf well to B2B eCommerce marketplace as does its recent association with the BizFi network. Applicants can manage client invoices and access funding directly through the InterNex portal.
THE COMMERCIAL FINANCE GROUP
Founded in 1974, The Commercial Finance Group (CFG) has for more than 40 years been providing working capital solutions to small and medium sized businesses. CFG provides ABL (Asset Based Lending) and Factoring solutions to small- and medium-sized companies in the U.S. and Canada. They work with companies in the B2B sector with annual revenues ranging from $250,000 to $40,000,000. They offer a wide range of working capital financing solutions that are suitable for small to medium-sized companies in every stage of their development, including: Accounts receivable financing (A/R Lines); Factoring, including recourse, non-recourse, full-notification, and non-notification; Asset-based lending lines of credit (A/R and Inventory); Purchase order (PO) financing; Complete A/R management programs; and In Transit Finance.
Apruve, a venture capital backed company, integrates a B2B ecommerce accounts receivables/payables & payment platform and augments it with making credit available to buyers. Their B2B ecommerce payment platform and credit facility integrates with many of the B2B eCommerce platforms as well as with ERP systems to capture, manage and finance customer orders. Buyers can extend Net 30, 60 or Net X, terms to the buyers upon buyer credit approval. COD or other terms such as 2% 10 days can be explored with the Apruve team. The seller gets paid upon issuance of the invoice. The payments are processed at each parties own bank with the Apruve bank acting as the intermediary and the prime lender. Designed for manufacturers, distributors, and wholesalers, because each parties own bank account is used the platform is applicable to companies of any size.
Standard Chartered is a 150 year old, leading international banking group, with around 84,000 employees in over 50 countries with China and India (where its first two branches were opened in 1858) being its biggest markets. Its recent collaboration with Tencent FiT to launch its new B2B ecommerce solution with the WeChat Pay gateway in China enables the bank to provide a one-stop shop for corporate clients’ online portals. Well known for their trade finance and transaction services in emerging markets, the new technology platforms gives the bank now the opportunity to knit all these elements together to offer a uniquely strong B2B eCommerce payment and credit facility. Standard Chartered will be looking to expand this offering to other markets across its international footprint in 2017.
BIBBY FINANCIAL SERVICES
In business for over 30 years and originally, the UK’s largest independent invoice finance company they are now in the US and 11 other countries. Their services include: cashflow funding, new equipment purchase, growth and expansion, overseas trade, management buy ins and buy outs, refinancing, corporate restructuring and mergers and acquisitions. Their transaction services include: invoice finance, factoring, trade finance, asset finance, vendor finance, export finance and bad debt protection. (see Video) While many trade finance companies will not lend against foreign receivables unless they have credit insurance, Bibby is in 13 countries, and are aggressive on foreign receivable lending in those locations.The countries are: Ireland; Netherlands ; Singapore; Malaysia; France; Germany; Poland; Czech Republic; Slovakia; USA; Canada; India; and UK.
More Trade Credit Services
Kabbage provides both unsecured and secured small business loans and lines of credit generally up to $150,000.
- The unsecured loans include: Business Lines Of Credit ; Working Capital Loans ; Online Loans; Revolving Lines Of Credit ; Peer To Peer Loans ; Professional Loans ; Commercial Loans ; Credit Card loans ›; Business Loans ; Microloans ; Short Term Business Loans ; and Inventory Loans
- The Secured Loans include: Equipment Loans ; Merchant Cash ; Factoring .
Some of these are of course not strictly speaking trade credit but are included here for information. Website
Transfac Capital B2B Financing
Bizfi is a FinTech company combining aggregation, funding and a participation marketplace on a single platform for small businesses. Founded in 2005, Bizfi and its family of companies is stated to have provided in excess of $2 billion in financing to more than 35,000 small businesses in a diverse variety of industries across the United States. Bizfi is a fully automated online marketplace designed to give multiple financing options to applicants through its proprietary platform technology which allows business owners to choose from multiple product types go directly to contract. After funding, businesses can view their payments and request additional funding through the Bizfi dashboard. BizFi offerings include two trade finance options Invoice Financing, or factoring as it is more genrally known, and business line of credit of $2000 $100,000 or more, with tenors of upto 24 years. Website
Some Country Options Worth Noting
- United Kingdom
- Europe Middle East & Africa
Conance Limited was founded in 1985 to provide trade financier services to small and medium-sized importers based in the UK. The company remains independent and privately owned. They use their own capital and independently arrange for funding from numerous mainstream and regional lenders They provide L/C’s, make payments on directly to suppliers using original or copy documents and give credit for those payments. Suppliers can also present documents on a collection basis, at which point credit can be granted. They also offer spot and forward rate foreign exchange services for the payment of overseas suppliers. Their facilities range in size from £25,000 (for the micro-business) to £1.5m in exceptional circumstances. The only provide secured financing but can usually have facilities agreed and operational within 5 working days of the initial meeting. Website
MUFG offers a complete range of working capital solutions including supply chain and trade finance, to receivables financing and cash management services. MUFG leverages the knowledge and expertise of Bank of Tokyo-Mitsubishi UFJ for its working capital solutions. They specialize in trade flows of minerals and metals, energy products and agricultural commodities as well as autos, machinery and equipment manufacturers, industrials, transport, retail, telecoms and the electronics sectors. Their clients range from mid-sized specialist product traders, to globally-integrated trading houses, and commodity procurement and marketing companies. Typically, their business is international but it may also include domestic transactions. They are in 50 countries and are present in over 2,300 locations in Europe Middle East and Africa. Website