The COVID-19 pandemic, geopolitical conflict, high inflation and distress in the banking sector have all put pressure on economic growth and will continue to do so for the foreseeable future. Against this backdrop, exporting is vital – now more than ever – in driving growth opportunities for both businesses and the wider global economy.
One area, in particular, which poses a challenge is funding. While 80% of global trade relies on finance, such as letters of credit and other short-term payment guarantees, the availability of trade finance is often cited by businesses around the world as a major barrier to their capacity to grow. The unmet demand for trade finance is now estimated to have surpassed $2 trillion as concerns around risk and inflation continue eating into bank lending limits. At a time where encouraging trade should be a priority, it is worrying that so many businesses are deprived of the support they need to grow.
The situation for businesses engaged in international trade, however, is also not without its challenges. For exporters, offering products and services to international importers often requires working with deferred payments – sometimes exceeding 120 days – which means that they face a financing gap between shipping the goods and receiving payment for them. Meanwhile, many SMEs in emerging markets do not have the financial resources to offer deferred invoice payments, even though it is likely to attract more international buyers. After all, suppliers still need working capital during this period.
Fortunately, new sources of liquidity are growing in popularity, particularly digital invoice financing facilities, such as Stenn’s. Not only does digital invoice financing facilitate global trade, but it also helps smaller businesses improve their cash flow by avoiding late payments. A recent survey by Nerdwallet, for example, found that over half (55%) of small and medium-sized enterprises (SMEs) in the UK have outstanding invoices from the 2022/23 tax year which can have serious financial implications.
With so many businesses deprived of the support that they need to grow, clear action is needed to address these trade financing gaps. The digitalisation of global trade simplifies access to new markets, reduces trade complexity, and presents a significant opportunity for SMEs to punch above their weight on the international stage.
About Stenn
Stenn is a leading digital marketplace enabling growth for businesses engaged in international trade, e-commerce and digital services. To date, Stenn has enabled over $15 billion (USD) of finance to global businesses, with capital provided by several blue-chip banks and institutional fund managers.
Apply today to release your working capital and start enjoying the benefits of Stenn tech:
- From $10k to $10M
We finance your invoices with a total limit of up to $10 million (USD). Boost your turnover!
- In 48 hours
We can do it online in 48 hours – much faster than any bank or insurance company.
- Only 2 docs
To start financing, get your Stenn contract and Buyer’s notification signed.
- Non-payment protection
If the Buyer does not pay on time, you don’t have to pay money back to Stenn. We take the risk of non-payment.
- From a single invoice
From a single invoice to the full ledger… it is your choice how you use Stenn financing.
- All online
No need for business trips and long meetings. You can do it all online – from signing documents to inviting your counter-parties to the platform.
welcome@stenn.com
+44 (0)20 3735 9080
