How would you describe Tradewind’s business model?
The main objective of Tradewind is to support a range of market segments and industries to benefit from cross border trade finance solutions. One of its main product offerings for suppliers, traders and manufacturers includes export factoring solutions – a form of trade-secured, ring-fenced receivables financing that enables companies to generate more sales by offering longer credit terms to buyers. It also provides supply chain solutions to clients who qualify based on their jurisdictional requirements and balance sheet strength to extend payment days without negatively affecting their cash position, providing them with the necessary cushion and liquidity. to focus on other urgent commitments. As a result, the buyer and the supplier achieve a win-win situation.
Our partnerships have a collective impact on the way business is done globally – Tradewind is committed to providing profitable and sustainable access to credit to clients in emerging markets. Our trade finance experts have the industry expertise to help align documentation and requirements to successfully obtain access to credit, and gain additional access to credit without the need to tie up fixed assets to secure the facility. . Partnering with a trade finance (factoring) service provider like Tradewind can provide additional resilience against trade finance deficits.
Why is the UAE SME market so exciting for your business?
The UAE has one of the most liberal and resilient trade regimes in the Gulf. It attracts significant capital flows from across the region thanks to government incentives to investors and the country’s continued commitment to technological and innovative advancements. Alternative financing options are gaining ground in the region due to a constant need to find solutions and exits for clients who would otherwise have difficulty obtaining additional credit or even no credit at all.
The acceleration of digital technologies has brought about a reset in the speed of business. Therefore, businesses need to be connected and prepared for both potential disruptions and unanticipated opportunities that would affect a company’s cash flow and bank balance. As awareness of factoring increases over the next few years, we see immense size and scope to meet the needs of existing and emerging SMEs and their need for practical and sustainable liquidity solutions.
The UAE’s recent groundbreaking decisions to open markets to trade and abolish strict closures and travel restrictions, are part of our strategy to support targeted growth to position everyone in the world. Supply chain space to navigate and forecast high-risk scenarios that could cause further disruption and liquidity issues.
How does your UAE export factoring solutions offering differ from your company’s work versus your operations in countries like India and Bangladesh?
In India and Bangladesh, we provide supplier finance solutions for exporters selling to UAE, EU, US and other jurisdictions. Given our comfort and our continued commitment to the region, Tradewind serves the domestic and international financing needs of the UAE. We understand the complexities associated with a diverse distribution of commercial and manufacturing industries located in the region, therefore, we organize transactions to meet credit and payment goals for buyers and suppliers.
How do you reassure your potential customers that your business is legitimate and properly regulated?
Tradewind GmbH, regulated by BAFIN, is a Germany-based trade finance company with deep roots in emerging markets. Tradewind Middle East Limited, its subsidiary in the United Arab Emirates, is regulated by the DFSA. Aligned with major trade corridors, it has expanded its presence to more than 20 offices in 14 countries, affirming its commitment to providing responsible financing that helps businesses accelerate their cash flow, improve collections and reduce exposure. to potential bad debts. As the group supports liquidity requirements across the spectrum of the supply chain, which traditional lenders would often hesitate to avoid, it understands and appreciates that credit intermediation is increasingly taking place outside of the corporate realm. banking sector.
increasingly, credit intermediation takes place outside the banking sector.