Why SMEs should consider trade financing over legacy banks in this region
- Date: 24-Sep-2020
- Source: Gulf Business
- Sector:Financial Services
- Country:GCC
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