Transforming cross-border trade finance

Cross-border trade is as old as trade itself. The fundamental principles and hence challenges for traders remains the same, despite attempts to create universal frameworks.

The problem is that purchase and sale take place in different places and different times. The seller needs to be paid before releasing the goods and the buyer won’t get paid till he sells them at home. Bridging that gap – “financing the trade” has become a huge and diverse collection of businesses. And rather than becoming simpler, the techniques have, rather like evolution, tended to become increasingly complex.

As the complexities increase, so do the risks – and the transaction costs. But with the maxim that “no two deals are identical”, today’s “traditional” cross-border trade facilities frequently generate mountains of paper, defying all attempts at simplification.

This link between money and goods has remained intractable, and is largely responsible for the continuing complexity of trade transactions. If this link could be broken, goods could move more freely, benefitting fully from today’s advances in logistics management, while the money could flow freely and quickly from buyer to seller.

One company has broken this link and aims to change fundamentally the way in which cross-border trade is conducted. TradeRiver, a supply chain financier allows its enrolled buyers to purchase goods for cash in local currency anywhere in the world without getting involved in the location, state or condition of the goods or, importantly the value as agreed between buyer and seller. For the first time, goods and their payment are completely separate, making cross-border trade arguably no more complicated than an online credit card purchase from an overseas retailer.

Come along to TradeRiver’s workshop about finding alternative sources of working capital without involving the bank taking place at the Manufacturing and Engineering Expo on 8th October at 2pm.

The South East is poised to take advantage of the positive manufacturing sector

Manufacturing & Engineering Expo on the 8th October in Kent

The Office of National Statistics recently reported that from February 2013 - February 2014 manufacturing had increased 3.8%. Since then optimism within the manufacturing industry appears to have remained high with orders from both home and abroad, according to the recent Industrial Trends Survey released but the CBI, continuing apace.

Contrary to what many people have believed, manufacturing in the UK is remarkably strong - Britain ranks 11th in the world. Although, perhaps, not at the heady heights of the 1970’s, industry has certainly been enjoying a renaissance and the South East in particular, as the region with the largest manufacturing base in the country, has been one of the main benefactors of this. Not only is it perfectly placed to take advantage of the booming market place across the rest of the country but also in its position as a gateway to European commerce.

Bringing together talent from across the industry

Tasked with ensuring that the gains of this buoyant market are fully developed and exploited is the Kent Invicta Chamber of Commerce, who is holding their annual Manufacturing & Engineering Expo on the 8th October at the Kent Event Centre, near Maidstone. It will offer local, regional, national and international firms the opportunity to meet, network and build new relationships. Along with the exhibition there will be a full conference programme including leading industry keynote speakers - with the leaders of automotive manufacturing, Aston Martin already confirmed - and informative workshops offering advice and knowledge in a practical way that can be implemented immediately.

...it’s a brilliant opportunity to see manufacturing techniques in action and hear from some leading industry experts

Jo James

The Expo this year is run in association with EEF, the manufacturers’ organisation for UK manufacturing companies, BAE Systems, MAS, which provides manufacturing business support for companies based in England and the University of Greenwich. As one of the largest events of its kind the Expo draws on a wealth of talent from the engineering and manufacturing sector, offering unrivalled access to commercial expertise across the board. Whether it’s developing or expanding a supply chain within the South East, discovering the latest technological innovations or initiating new relationships the Expo is perfectly positioned to help.

“This is going to be a great day for everyone involved in the manufacturing and engineering sector - not only is it a fantastic platform to develop relationships with new and existing clients, but, also it’s a brilliant opportunity to see manufacturing techniques in action and hear from some leading industry experts,” says Jo James, Chief Executive of the Kent Invicta Chamber of Commerce. “With the Expo dinner this year showcasing Richard Noble’s unique and inspiring spirit, the event is certainly shaping up to be a key date in the manufacturing and engineering industry calendar.”