DP World, a provider of smart supply chain solutions, announced a partnership between CARGOES Finance By DP World and Germany-based trade finance group Tradewind Finance to provide working capital solutions to companies looking for trade finance.
CARGOES Finance By DP World is a fintech platform that brings together importers, exporters and logistics companies around the world who want to borrow from financial institutions. It gives lenders access to data on cargo borrowers’ movements so they can lend with confidence and help the industry bridge the 1.5 trillion-dollar trade finance gap.
DP World customers that own cargo and beyond will now be able to apply for Tradewind’s export factoring product and more on CARGOES Finance, that ultimately opens a new revenue stream for Tradewind to scale their business, provide them access to trade data to better risk analysis and mitigation, as well as visibility on underlying trade.
Sinan Ozcan, Senior Executive Officer, DP World Financial Services Limited, said, “Trade Finance is not as accessible as it should be, particularly for millions of small to medium-sized businesses. Resolving this issue is critical for all participants in the Trade Finance industry. The sector accounts for an important portion of global GDP, so its performance affects the world economy. Our partnership with Tradewind will further help our mission to level the playing field for exporters, importers, and logistics companies, and help them grow their contribution to global trade.”
The collaboration allows for access to scarce working capital, especially for small to medium-sized enterprises that handle almost 50 percent of global trade. Both institutions aim to enable trade on a global scale. Access to liquidity is imperative for the growth and stability throughout the supply chain, particularly for small and medium enterprises, who, despite making up for the bulk of the global economy, remain significantly underserved and are perceived to be riskier from a traditional banking perspective due to lack of visibility on the underlying trade.
Tradewind Finance has offices strategically located in over 14 countries, providing an extensive array of finance offerings including export factoring and supply chain finance solutions. Companies seeking finance will have an easier reach to Tradewind via Cargoes Finance. Aligned to major trade corridors, Tradewind will provide liquidity to buyers requiring increased payment terms and suppliers wishing to receive their payments earlier.
Peter Maerevoet, Senior Executive Officer, Tradewind Middle East Limited and CEO Tradewind Asia, said, “We’re delighted to embark on this program with Cargoes Finance by DP World. Both groups are aligned on their desire to promote and enable global trade, and such a formidable partnership will allow us to safely distribute cost-effective capital to manufacturers and traders requiring financial support, while DP World fulfills its objective to enable global trade through digital innovation.
“Partnering with a behemoth such as DP World Group will provide greater visibility to everyone along the supply chain, and will facilitate global trade at a greater pace. Such collaboration will not just provide trade and credit risk support, but will also provide visibility all along the supply chain to Tradewind when the transactions are funded, mitigating potential risks from the funder’s side.”
Media contact
Rebecca Morpeth Spayne,
Editor, International Trade Magazine
Tel: +44 (0) 1622 823 922
Email: editor@intrademagazine.com
