Our client, Tradeteq, was recently featured in an exclusive article in Global Banking and Trade Finance Review. In the piece, Tradeteq CEO Christoph Gugelmann, explores a more surgical approach to helping SMEs stay afloat during the current pandemic.
Recent months have seen a variety of different measures to help small businesses, ranging from loans, the furlough scheme, to the increasingly popular ‘Eat Out To Help Out’ programme. However, these initiatives only address the problem at the surface level. Instead of giving cash to individual businesses, looking to help entire supply chains can allow governments to take a more surgical approach with a lasting impact.
Increasing government help for SMEs
SMEs represent 90% of the world’s businesses, and more than 50% of employment worldwide, meaning their stagnation would be felt in every region and across every industry. It’s here that governments can lend a hand.
Governments help for SMEs should encourage banks to open up this market and parcel trade finance loans into assets smaller investors can buy. This way, entire supply chain get access to the funds they require. The distribution of trade finance assets to alternative investors is one of the best ways to help these businesses.
Trade out to help out
This approach is similar to the Eat Out to Help Out scheme as the government would be encouraging increased investment into these smaller businesses – only from a more macro level. However, instead of looking to support businesses by eating, we’re helping businesses by trading. Through using a method that addresses an entire supply chain, the positive impact of this investment will be felt for far longer and help many more businesses.
To find read the full article and find out more about how Tradeteq are enabling trade finance distribution, click here: https://www.globalbankingandfinance.com/trade-out-to-help-out-how-governments-should-be-supporting-sme-supply-chains/
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