Emerging markets have grown at a lightning speed. Over the last 20 years, it has resulted in transforming international trading practices. Emerging economies now play a larger role in international trade than ever before. Twenty years ago, emerging economies accounted for about 30 percent of the world’s trade. Today, the figure stands at nearly 50 percent.
As supply and demand grow, developing market enterprises require ongoing working capital to maximize distribution, operational efficiency, and inventory turnover. International trade financing companies can assist emerging-market businesses in improving their cash flow position and reducing their risk exposure.
International trade finance companies typically extend working capital to businesses in emerging markets by providing them with trade finance facilities such as documentary collections, letters of credit, standby letters of credit, factoring facilities, and export credit. When a buyer purchases goods from a seller,
Emerging Markets are ready for international trade, but need trade finance
