Trade Finance is the second core service provided by Ryuken Capital. The firm helps its clients source the right instruments depending on their requirements and objectives. Ryuken Capital works with several Trade Finance partners which cater to different market segments and sectors.
Key Points on Trade Finance
Trade Finance is a discipline which addresses the challenges of moving goods internationally. It is a general term which englobes the range of financial instruments associated to international trade.
Generating trust through guarantees lies at the heart of Trade Finance. Engaging in international trade creates a host of risks such as non-payment by buyers, cargo risk, documentary risk etc.
Any company which imports and exports products will at some point require trade finance instruments. There are simply too many things that can go wrong to rely solely on good intentions.
Ryuken Capital as your Trade Finance Partner
We work with several Trade Finance providers which range from banks to alternative players. One does not necessarily exclude the other, but banks will often be more restrictive in their criteria. As is the case with the rest of its services, Ryuken Capital will front the relationships between the client and the Trade Finance providers.
The Ryuken Framework on Trade Finance in Six Points
Initial discussion with the client to understand its business and associated Trade Finance requirements.
Is the client already using Trade Finance instruments? If yes, what is its track record and how efficient have the instruments been? If no, how knowledgeable is this client on the workings of the instruments?
What is the facility required by the client and what will be its purpose?
How is the Trade Finance instrument expected to help the client expand its business? What impact can approximately be expected on cash flow and other financial metrics?
What payment terms is the client willing to consider and potentially accept? How realistic are they?
What does the client expect from a Trade Finance provider? Beyond the availability of instruments, what are the expectations on service?
If you wish to expand your possibilities on Trade Finance, please contact Ryuken Capital by emailing contact@ryukencapital.com
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