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Worldwide Shortage of Trade Finance Disproportionately Hurting Small Business

There is a worldwide shortage of trade finance which has now reached an astonishing $1.6 trillion. It will come as no surprise that this shortfall in trade funding liquidity is not affecting all businesses equally. Small business is being disproportionately hurt, according to a study by the Asian Development Bank (ADB). Small and medium-sized businesses (SMB) face the toughest challenges in trade finance under the best conditions. Now, with a $1.6 trillion shortage of available trade financing, many small and medium-sized businesses are struggling to survive.

 

The impact on small business has been severe with 57% of small business financing applications being rejected. Compare that to only 10% rejection for larger companies. That means more than half of small businesses cannot finance their deals. This small business rejection rate is astronomical, unacceptable, and is forcing many smaller companies to seek alternate forms of trade financing, which is both expensive and risky.

 

If you are a small- to medium-sized business that is having difficulty securing trade financing or project financing, we can help. Even if you have been rejected by other banks and financiers, we can deliver the financing you need. Contact us now to get started.

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