Why SMEs struggle with traditional banks

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8 May 2019


60% of firms report that once a trade finance application is rejected by a traditional financer—such as a bank—their outstanding trades fail.

or small and medium enterprises (SMEs), this can mean this can be the difference of the growth or decline of the business. Interestingly, out of all rejected import lending applications, only 20% were actually considered unbankable —meaning that SMEs are being underrepresented and passed over in favor of larger, more established companies.

However, it’s not just the fact that SMEs struggle to access import/export financing from traditional providers—much of the time the solutions traditional banks provide aren’t suited to growing SMEs who have specific borrowing needs and require flexibility.

With this in mind, it’s clear that the partnerships between traditional lending providers and SMEs no longer works for the majority of new businesses.

What’s the solution?

Ebury provides SMEs access to much needed flexible import/export financing.

You can get an unsecured credit line, which doesn’t affect your credit terms with other providers, and access our wide range of FX and international payment solutions at the same time.

Why choose Ebury’s trade finance?

1. Flexibility

Our trade finance solution doesn’t require any upfront fees, which means as a growing company, you don’t have to make any long-term commitments. You can also pay us back within up to 150 days, and we take no collateral—meaning that your goods are yours.

With the increased flexibility that trade finance brings you, you can take advantage of any opportunities that exist in your market.

2. Strengthen relationships with suppliers

With the added stability trade finance brings, you can increase your volumes of stock/orders meaning your suppliers/buyers will likely continue working with you in the future.

Also, with the ability to pay out in over 130 currencies, suppliers can invoice in their local currency and allow buyers to repay in theirs—reducing FX risk for you and your business.

3. Fast approval and access to funding

When you apply for trade finance with a bank, they can take months to approve your application, which limits importers and exporters alike in responding to market demand. With Ebury, you could be up and running in a matter of days.

Once you have been approved, funds are available almost immediately. Similarly, once you’ve paid your credit line back, the amount is immediately available to draw down.

This means you won’t have any financing gaps, and can ensure your transaction flows are kept intact.

Our flexible lending solution provides you with credit to help finance international and domestic imports or exports.

Once you become an Ebury client, you will have access to our range of other solutions, including treasury solutions, our API and currency accounts. Talk to your relationship manager, or contact us here to find out more.