Access to Finance
Producers, processors, manufacturers and traders in value chains are integral to regional economic development. Often they do not have adequate access to finance. This is especially true for small producers and Small and Medium Enterprises (SMEs), which account for the largest number of businesses.
Financial institutions need new products and services to better serve the value chain players, and to enable enhanced intra-regional and international trade.
Trade finance is needed to help producers source inputs within the region, to help traders source staple foods, processed foods, and other goods and products for resale, or to assist processors and manufacturers source raw materials, packaging, components, transport, etc.
Some types of Trade Finance include:
- Purchase order finance (POF)/Pre-shipment/Pre-export finance
- International Factoring
- Letters of Credit & guarantees
- Export insurance
- Warehouse receipts