The Asian Development Bank found that SMEs are disproportionately affected by the $1.7 trillion trade finance gap – the difference between the number of applications to finance companies’ participation in international operations and the number of approvals. SMEs account for 40% of such rejections, much higher than their share of applications.
The trade finance gap has reached $1.7 trillion and small-and medium-sized enterprises (SMEs) are disproportionately affected.
New technology can enable the transformation of trade finance assets into profitable capital market products.
A multistakeholder approach is needed to ensure SMEs have greater access to affordable trade finance.
Trade constitutes the backbone of every economy and 80-90% of global trade requires financing. Small and medium-sized enterprises (SMEs) account for around 90% of companies and more than half of the jobs worldwide according to the World Bank. It’s often those SMEs that are underserved and lack access to affordable trade finance.
