 Sumitomo Mitsui Banking Corporation has a long tradition of financing trade, with teams in ten locations around the world, covering all main markets. Each team is part of a global network of trade finance professionals with the expertise, experience, local market knowledge and long-term management commitment to this business. In addition to standard trade finance products, the teams structure sophisticated and innovative solutions to a wide variety of financing needs for both financial institutions and corporate customers. |
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Trade flows are expanding inexorably throughout the world - between advanced industrial economies, between those economies and emerging markets, and within emerging markets. This reflects increasingly close cross-border links between economies, the dissolution of trade barriers, and the recognised benefits of trade. Trade finance provided by commercial banks, export credit agencies, multilateral development banks, suppliers and purchasers, has grown by about 11 percent annually over the past two decades. Trade accounts for about one half of the gross national income of developing countries, and financing that trade has become increasingly important to a country's development prospects, as well as to manufacturers of capital goods, machinery and other products increasingly reliant on competitive export markets. Trade finance facilitates and expands trade by providing traders with appropriate instruments to support their trading activities. It enables emerging markets to gain access to financial resources by easing creditor's risk, as financing is tied to the traded goods. Trade finance provides companies with the necessary capital and liquidity, and helps them to better manage their cashflow, allowing them to expand and grow. It also enables them to manage risks associated with international trade transactions, increasing the number of options available to traders to reduce or eliminate risks associated with non-payment or payment delays, fluctuations in exchange rates, changes in trade and financial regulations and political unrest, among others. Furthermore, terms of payment are increasingly used as competitive tools during contract negotiation. Buyers would generally favour a contract that provides certainty and attractive credit terms. Traders with access to a wide array of trade finance tools and instruments are better equipped.
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