Why SMEs should consider trade financing over legacy banks in this region

Why SMEs should consider trade financing over legacy banks in this region

We are living through exceptional times. Things are changing at a dramatic pace for businesses across the country and beyond. This is the time where legacy banks are arguably lagging behind when it comes to providing financing versus a factoring company.

There are several reasons for this. Given the need for finances, especially in these testing times, a quick turnaround is helpful for SMEs as cash flow can make or break a business. This is the first advantage for trade finance companies as they can expedite the assessment and decision-making process thanks to their specialised and focused approach.

Since legacy banks have various revenue streams and cross-sell opportunities, this means they are not particularly concerned about attrition rates when it comes to their clients. This brings us to favourable accounting