Trade Finance
With the growth in the size and value of import and export flows across the world coupled with the changing direction of those flows in terms of geography, Trade Finance is a rapidly developing area for Financial Institutions and their Corporate Clients. The shift to export promotion across an increasingly wide range of Industries is forcing Corporate entities to find ways of conducting trade in a more flexible manner, to offer competitive terms to Buyers and Suppliers alike. This in turn means that they need to find new channels for funding their Domestic and International trade and new tools to mitigate the risks associated with those flows.
In this context, CMM has seen rising demand from Corporate and Financial Institutions alike for innovative new trade finance products to support these critical commercial flows while eliminating many of the inefficiencies associated with the traditionally L/C based, paper intensive operations. CMM has worked with a variety of institutions to develop new finance and risk transfer products to meet these emerging needs including the following:
- Supplier Finance Programs
- Buyer Finance Programs
- Without recourse Trade Receivables Discounting Programs
- Murabaha Based Import Finance Programs
- Ijara Based Trade Finance Programs
- Programs to manage trade finance risk participations and syndications
- Programs to access public and private sector insurance cover for political and or commercial risks
- Programs to access Overseas Export Credit Agency Facilities
- Factoring Programs
Trade Services
Having invested heavily in developing Cash Management and Liquidity products including web-enabled Customer Delivery Offerings, CMM is now witnessing Financial Institutions make similar investments to up-grade documentary collections and L/C products for imports, exports and domestic trade. Additionally there is rising demand from Corporate entities to help them eliminate the many document discrepancies and payment delays associated with these trade flows. In addition Corporate demand trade service offerings that allow them to monitor the status of each trade transaction for greater transparency, to manage risks, free up working capital and manage their supply chains, CMM has worked with a variety of Institutions to introduce new product offerings for the following:
- Programs to enable Corporate to out-source overseas open account sales ledger management and collection facilities
- Automated direct export collections programs
- Automated Import and Export L/C programs
- Automated stand-by L/C programs
- Pre-presentation checking programs for documents under export L/Cs
- Committed and or revolving L/C confirmation Facilities
- Trade Training and Advisory Programs for Corporate Customers
Additionally CMM has worked with Institutions to evaluate their current infrastructures for Trade Processing often resulting in a re-engineering of existing processing and Client Service processes, procedures and technology and in some cases the launch of programs to centralise processing, and outsource Trade Processing to third parties.
