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SUISSE BANK offers private and corporate digital bank accounts, blockchain banking and trade finance for its world wide clients under the offshore license.

Key Trade Finance Trends to Watch Out For in 2023

The trade finance market is highly fragmented. It is segmented based on geography and service providers. These include trade finance companies, banks such as SUISSE BANK PLC, insurance companies and others.Additionally, the impact of the COVID-19 pandemic on geopolitics and the supply chain has further led to uncertainty. And this may take a toll on the growth of global trading.

 

According to the World Trade Organisation (WHO), trade growth may slow down in 2023 but will remain positive. In this scenario, trade financing comes into the picture, making international trading more accessible. It ensures exporters receive their payments duly while importers receive their goods. However, the core ecosystem of trade finance is complex and there are key trends that are expected to drive the market in 2023:

 

  1. Digitisation of Trade Financing

 

Even today, the trade finance industry is mostly paper-based and reliant on manual processes. It is said that this aids in better risk management and the flow of liquidity through the ecosystem. However, 2023 will see the digitisation of critical documentation, including the Bill of Lading. According to experts, this can significantly reduce direct costs and facilitate global trade.

 

It is expected that the widespread adoption of electronic bills of lading in 2023 and beyond will help drive the industry forward. New standards will come in, requiring all service providers, importers and exporters to adapt to the same and boost global trade. 

 

  1. Expect to See a Rise in Digital Assets

 

As digital assets are taking the world by storm, it is likely to influence the trade finance industry as well. Trade finance is a complex process and involves multiple processes and parties that aid in the seamless movement of goods and services. By leveraging smart contracts for digital trade assets, service providers can digitise their trade finance processes in the future. It also provides the option to set up tokenised digital assets that can help represent bank risks.

 

  1. Collaboration Between Financial Institutions and Fintechs

 

2023 will see an integration between banks such as SUISSE BANK PLC and fintechs to transform the future of the trade finance industry. Fintechs can help in a financial institution’s digitisation journey, driving efficiency and streamlining workflows.

 

With the above trends, we can expect the trade finance industry to digitise and grow in 2023 and the years to come.

 

Is Trade Finance Right For My Business?

Fast-paced globalisation and technological advancements have made it simpler for businesses to expand their operations globally, grow and maximise their revenues. However, there are significant risks too, including “payment” and “supply” risks. Trade finance helps mitigate the risks related to international trading by addressing the challenges of exporters and importers.

 

It represents a wide spectrum of financial instruments that businesses use to facilitate global trade and commerce. Unlike conventional credit issuance or business loan, trade financing primarily protects against the inherent risks of international trade – political instability, currency fluctuations, the creditworthiness of the parties to trade, or problems arising due to non-payment.

 

During international trading, the supplier would want the importer to pay upfront to mitigate credit risks. On the other hand, the importer may face supply risks wherein the exporter may not fulfil the order according to the trade agreement. Trade finance instruments issued by banking and financial institutions such as SUISSE BANK PLC can help reduce the risks and ensure smooth trading.

 

Some of the most widely used trade financing instruments are:

 

  • Bank Guarantees: Through bank guarantee, a bank or financial institution underwrites a promise of payment. If the customer does not meet certain obligations as mentioned in the trade agreement, the financial institution will pay the amount to the concerned party on behalf of the customer.

 

  • Letter of Credit: Through a letter of credit, the importer’s bank ensures that the former is financially viable to honour the financial transaction. The issuing bank underwrites making the payment once the exporter ships the products and fulfils the terms of the trade agreement.

 

  • Proof of Funds: It is a financial statement issued by the bank, ensuring that the customer (importer or supplier) has the financial viability and credibility to complete the trading transaction.

 

  • Warranties: It is a third-party payment guarantee issued by the bank on a promissory note, bill of exchange or a debt obligation, facilitating an international trade agreement.

 

In addition to minimising the risks of non-receipt of goods or non-payment, trade financing by leading financial institutions like SUISSE BANK PLC can help streamline operations, improve efficiency, and generate increased revenues.     

Why Trade Finance is Crucial for SMEs?

Small and medium-sized enterprises (SMEs) hold a significant share of the global economy. Yet, they have limited access to effective risk mitigation and financial strategies. Particularly when they venture into new markets or engage with the global supply chain, they tend to lack an optimum liquidity level that can help meet their financial needs.

 

Traditional bank loans typically do not provide payment protection to SMEs, especially for international trading. Hence, their working capital may remain locked in the shipping for several weeks or months. In this scenario, international trade finance can be the right option to meet the cash needs and also mitigate payment risks. There are many trusted offshore banks and trade financing institutions such as SUISSE BANK PLC that provide tailored financing solutions.

 

Trade Financing Can Help Mitigate Payment Risks

 

One of the biggest challenges that SMEs face with international trading is higher payment risk. On one hand, the importer faces the risk of receiving the goods timely. On the other hand, the exporter is unsure if they will get their full payment on time. There are several factors that result in payment risks, including:

 

  • The credit rating of the importer and history of payment or non-payment
  • Economic or political instabilities
  • Currency fluctuations that may cause exchange rate risks
  • Hikes in transit costs

 

Such payment risks may be addressed by a bank guarantee. It is a written undertaking that a bank or financial institution issues, stating that if you (the customer) fail to meet certain obligations as specified in the trade agreement, the former (bank or financial institution) will make the payment to the party concerned on behalf of you. In many cases, a well-established enterprise will not open a line of trading with you if you cannot provide a bank guarantee.

 

In addition to payment risks, SMEs may face several other international trading challenges such as – lack of working capital, non-compliance with global regulations, regulatory requirements, etc. Trade financing is the best way you can address these challenges and facilitate business growth through trading. Reputable banking institutions such as SUISSE BANK PLC can provide tailored financing solutions to facilitate international trading.          

      

How Can Trade Finance Benefit Your Business?

Regardless of the size of your business, whether you are a small-and-medium business or a multinational company doing export and import, trade finance plays an integral role. It is more favourable than getting an overdraft on your bank account and facilitating the trading process between the parties – buyer and seller or the importer and exporter. SUISSE BANK PLC is a reputable offshore banking institution that provides a wide range of trade finance products, , catering to the needs of global clients.  

Let’s understand how trade finance can help your business perform trade and scale.

Secure Capital to Purchase Goods or Stocks

For buyers or importers, trade financing can be an effective tool to secure working capital to purchase goods or stocks. It offers more scalable, secure or flexible cash flow solutions to help meet their growing business demands. In a scenario where SMEs face the challenge of high-cost barriers, trade financing gives them the option to order more goods which can increase their productivity considerably.

Guaranteed Payment to the Seller or Exporter

In most cases, importers want to make the payment after they receive the goods. However, this can be a risky affair if the exporter is dealing with new buyers or SMEs who typically run with limited working capital. In such cases, the exporters would want to receive the payments before shipping the merchandise.

Trade financing helps bridge this gap by ensuring guaranteed payment to the seller or exporter. This aids in better trading terms.

Address Short-Term Cashflow Challenges

In most cases, exporters maintain a long working capital cycle. Furthermore, there are waiting times of up to 90 days between the receipt of payment and the arrival of the merchandise. This long gap often forces importers to limit their orders within a particular time.

Trade financing helps address this problem by issuing payments to the supplier within days and not months. Hence, you can increase your trading flow and scale your business.

Conclusion

Trade financing helps bridge the payment gap between the importer and exporter, facilitating effective trading for both parties. For an exporter, it can help mitigate the payment risks while for the importer, it can reduce the supply risks from the exporter. Make sure you work with a reliable banking institution like SUISSE BANK PLC to have access to a wide range of trade financing products.         

Offshore Banking: Keep Your Wealth Secure in One Place Even When You Are Abroad

 

Opening an offshore bank account is an effective way to secure, manage and invest your wealth as you move around the world. Also known as international banking, the bank account helps grow money safely and conveniently. You can hold the offshore bank account in addition to other accounts in the country you live in or your home country. It is the ideal option for people or businesses with international banking needs.

 

Manage your wealth in one place – discreetly and securely – irrespective of wherever you travel. SUISSE BANK PLC is a reputable offshore bank that provides digital private and corporate banking, cryptocurrency, debit card, trade finance and concierge services.   

 

Who is Offshore Banking For?

 

An offshore bank account is suitable for individuals who:

 

  • Live or work abroad outside the jurisdiction of the international bank
  • Need to travel to different countries for business or work
  • Plan to settle in another country
  • Hold assets and income in various currencies
  • Want to save and grow wealth in a secure and offshore jurisdiction

    

It is also an effective banking option for businesses that:

 

  • Have operations or plan to expand in different countries
  • Hold income and assets in multiple currencies
  • Want to secure wealth in an offshore jurisdiction

 

Is Offshore Banking Illegal?

 

Overseas banking is not illegal unless individuals and businesses do not use it to store wealth discreetly, evade taxes or hide money made through illegal activities. Most banking institutions operate legally and get regulated under an international banking license. However, there is a misconception that wealthy and powerful people use this banking option to avoid paying taxes, committing fraud or laundering money.

 

But this is not true. Offshore banking institutions operate lawfully, and reputable ones like SUISSE BANK PLC keep strict vigilance on all accounts, ensuring they do not get used for money laundering or tax evasion.      

 

Benefits of Opening an Offshore Bank Account

 

  • Digital KYC onboarding
  • Multi-currency all-in-one wallet
  • Third-party payments
  • High transaction/deposit limits
  • 24/7 support

 

Some banking institutions like SUISSE BANK PLC also provide cryptocurrency trading, debit card and trade financing solutions to offshore bank account holders.  

SUISSE BANK PLC: Offering the Best Banking Experience for Offshore Clients

Even in the era of fast-paced digitisation and advanced technology systems, many people have misconceptions about offshore banking. Thankfully, SUISSE BANK PLC has redefined the concept of overseas banking, helping build trust, reliability and transparency. The banking institution offers tailored banking solutions, backed by top-notch security and discreteness.

 

Interestingly, the bank has not limited itself to offshore banking. It takes a step ahead to offer a range of innovative services that are customised to meet unique needs of the global clients. Here’s what you can expect from SUISSE BANK as your banking partner:

 

  • Digital Offshore Accounts

With SUISSE BANK, you can open both private and corporate offshore bank accounts digitally. To make the overall experience hassle-free for the clients, they offer digital KYC onboarding in less than 30 minutes so that you have the bank account opened and ready to use instantly. No need to be present physically or visit the bank frequently to make transactions. 

 

  • All-in-One Wallet

Unlike other offshore banks, SUISSE BANK PLC offers a unique feature: an all-in-one-wallet that opens up an array of benefits for the clients. When you open an digital private or corporate bank account, you enjoy the following features (and much more):

 

  • Digital KYC onboarding in less than 30 minutes
  • Own IBAN account for incoming or outgoing payments
  • Multi-currency digital wallet in GBP, EUR and USD
  • High deposit/transaction limits
  • Third party payments
  • Cryptocurrency trading with liquidations in 30 minutes or less
  • Debit card powered by MasterCard with high transaction limits

   

  • Cryptocurrency Trading

SUISSE BANK also brings to you a lucrative investment opportunity through cryptocurrency trading. It is a trusted and reliable platform that allows you to buy, sell, store, deposit, withdraw, transfer and convert crypto into fiat money. Crypto to fiat liquidation takes less than 30 minutes and the money is directly deposited to the e-wallet.

 

  • Trade Financing

If you are a business owner and considering growing your business through import-export or expansion, the offshore banking institution offers a gamut of trade financing products – Bank Guarantees, Standby Letter of Credit, Proof of Funds, Documentary Letter of Credit and Warranties.

 

Offering a plethora of benefits and an improved experience, SUISSE BANK PLC emerges to be a reliable name in the offshore banking industry.   

 

 

How Asset Diversification Can Help Minimise Investment Risks?

For most investors, it is likely to capitalise in financial instruments that generate high returns. But that also means putting all your eggs in one basket – resulting in higher risks. This is because when you invest in high-performing assets, you tend to buy at a relatively higher price. As such, there are greater risks involved. This is where portfolio diversification comes into the picture.

 

Established banking institutions like SUISSE BANK PLC provide asset diversification services to help clients mitigate risk levels and make a smart investment plan. Based on market volatility, a well-diversified portfolio can help spread your financial risks across different industries and markets to strike a balance.

 

Know how asset diversification not only makes your investment portfolio stronger but also helps reduce potential risks.

 

Minimise the Risks of Market Volatility

 

Investing only in high-performing assets or a single type of instrument can significantly increase your financial risks due to market volatility. By diversifying your investment portfolio across different sectors and asset classes, you can reduce the impact of market instability. If one asset type performs poorly, other investments can perform better during the same period to strike off the loss. Thus, you can invest safely and earn higher returns in the long run.

 

Opportunity to Leverage Different Financial Instruments

 

Diversification allows you to invest in a broad spectrum of financial instruments, each with its risks and returns. For instance, investing in fixed deposits allows you to leverage a lower risk and a fixed return. On the other hand, you can invest in both debt and equity by choosing mutual funds. Thus, a diversified portfolio will help balance the risks and returns associated with various types of funds.

 

Preserving Capital

 

Investors who are on the verge of retirement will focus primarily on capital preservation rather than accumulation. They would like to invest with lower risks but better returns. Asset diversification is one of the best ways to spread your risks and protect your savings.

 

Spread Your Risks and Leverage the Market Movement

 

Portfolio diversification is a tactical investment approach that every investor should harness. It allows spreading your risks across various asset classes, leverages the market movement and generates higher annual returns.

 

For professional asset diversification consultation and service, you should get in touch with expert financial institutions like SUISSE BANK PLC.