ICC UK Introduces Initiative To Cope Duplicate Finance Fraud Recently, the ICC United Kingdom has reported launching a new drive to enhance the UK finance industry against the adverse effects of duplicate financing fraud. The Centre for Digital Trade and Innovation (C4DTI)operated initiative will use ICC United Kingdom’s convening abilities to convey this leading project under the C4DTI’s “Shutting Fraudsters out of Trade” workstream in association with MonetaGo. Duplicate Financing is defined as a fraudulent act where fraudsters avail multiple funds for the same transaction several times. In the present scenario, a fraudster can visit various banks and get the same transaction financed, without letting the other banks know or having them cross-check with the same. Guidelines related to confidentiality inhibit the banks from disclosing or sharing information on deals they have financed with other banks, creating a hopeless situation that fraudsters take advantage of to get funds for the same transaction multiple times. Read more: https://www.emeriobanque.com/news/icc-uk-introduces-initiative-to-cope-duplicate-finance #DigitalTradeandInnovation #UKfinance #ICCUnitedKingdom #financialservicesglobally #globaltradefinance

How Investment in Trade Finance Can Help SMEs Thrive? A healthy trading system depends on the availability of finance. Up to 80% of current Global Trade Finance is backed by credit insurance or other financing. However, there are sizable gaps in the available resources, making it difficult for many businesses to access the necessary financial tools. With sufficient trade finance, businesses can have the resources they need to trade and grow, taking advantage of opportunities for development and expansion. Small and medium-sized businesses (SMEs) need help finding financing with favourable terms. This is especially concerning because SMEs constitute a significant force in trade, employment, and economic growth. According to research, SMEs encounter these obstacles in developed and developing nations, but the difficulties are most significant in lower-income countries. Trade digitalization has no definition, but it typically entails the digital twining of supply chains, the dematerialization of documents, and the digital data exchange. It means adding an electronic or computerized layer to business processes. A key distinction in the new reality is that digitalization also refers to using digital channels to assist SMEs in creating value. By doing away with paper-based transactions, SMEs can increase productivity and transparency while avoiding delays brought on by physical documents getting misplaced or destroyed along the way. Read more: https://www.emeriobanque.com/blogs/how-investment-in-trade-finance-can-help-smes-thrive #GlobalTradeFinance #tradefinance #supplychains #SMEs #TradeFinanceServices #Letterofcredit #Tradefinanceinstruments

All You Need To Know About Trade Finance Gap: Find Effects on SMEs The pandemic has hurt trade and highlighted a requirement to make productive changes in trade finance service to bridge the gap in the number of those who need it and those receiving it. Recently, the USD 1.5 trade finance gap was reported by the Asian Development Bank in 2019 during the Covid pandemic. Besides this, the Manila-based multilateral institution’s latest Trade Finance Gaps, Growth, and Jobs Survey, included 79 banks from 43 countries and 469 firms from 72 nations. Its findings reveal the extent to which this trade finance gap is disrupting the full utilization of trade to facilitate growth, employment, and poverty reduction during the sudden outbreak of the global pandemic. All this data efficiently demonstrates the lack of accessibility of global trade finance instruments and the disproportionate impact of a lack of funds on emerging markets businesses, especially SMEs (small- and medium-sized enterprises). However, what trade finance gap exactly, why does it matter, and how can it be decreased or controlled? What is the Trade Finance Gap? The trade finance gap is the difference between the trade finance requests made by businesses around the world to empower sales of their goods & services and the actual amount of financial assistance that banks are willing to grant or able to provide. In other words, it is the difference between the supply & demand of trade finance services. Read more: https://www.emeriobanque.com/blogs/trade-finance-gap-and-its-effects-on-smes #internationaltradefinanceservices #AsianDevelopmentBank #globaltradefinanceinstruments #internationaltradefinanceinstruments #tradefinanceservice #SMEs

Advantages and Disadvantages of Letter of Credit in Global Trade A letter of credit provides a financial backdrop to both the buyers/importers and overseas suppliers ie. sellers/exporters in cross-border trade transactions by ensuring that the payment will be made on time. Before using an international letter of credit, it is important to consider its advantages and disadvantages. Let’s find it in detail: What is a Letter of Credit? A letter of credit is a legal document issued by a bank or a private institution guaranteeing that a buyer will pay the seller on time and for the correct amount of goods & services ordered. In the event, that the buyer defaults or is unable to pay, the issuing bank will compensate the full or remaining amount to the seller. It is one of the most & frequently used global trade finance instruments in cross-border trade transactions used by sellers and buyers to avoid payment failure while importing and exporting. It is a highly customizable and effective form that can reduce credit risks. Let’s see how it works. Read more: https://www.emeriobanque.com/blogs/advantages-and-disadvantages-of-letter-of-credit #internationalletterofcreditservices #globaltradefinanceinstruments #letterofcreditserviceproviders #standbyletterofcredit #AdvantagesofLetterofCredit #DisadvantagesofLetterofCredit