Where's the Goods? Where's the Money?

Trust lies at the center of all trade finance transactions, but these days, with the credit crunch putting a dent in global commerce, safe harbors are in short supply.

Exporters offering payment terms to foreign buyers are more cautious, and banks that support cross-border sales are more stringent in managing the credit risks involved. Working capital and receivables finance, inevitably, are more expensive and less available.

That’s one reason why Supply Chain Finance (SCF) programs are increasingly popular. These strategies, which combine Internet platforms, software and programs, have been brought to trading operations over the past decade by a handful of large, global banks and a cluster of independent technology companies. SCF has demonstrated a capacity to mitigate risks and build trust, particularly in the huge Asia-U.S. and Asia-Europe trade routes on which it has been heavily focused.

It may be a critical, strategic moment for these banks and technology groups to expand their presence in the larger global trade arena. Some leading players in the field seem to think so.

To view the full article, visit WorldTrade Magazine at
http://www.worldtrademag.com/Articles/Article_Rotation/BNP_GUID_9-5-2006_A_10000000000000520081