Tradewind Finance and National Credit and Commerce Bank Limited Collaborate To Serve Bangladesh’s Growing Export Market
Tradewind Finance and National Credit and Commerce Bank Limited have entered into a bilateral agreement dedicated to providing trade finance solutions to the Bangladesh trade and manufacturing community, facilitating the expedited receipt of payments for foreign export sales.
During the peak of the pandemic, Tradewind witnessed a rise in the demand for flexible, short-term financing in Bangladesh, on account of foreign importers looking to diversify their supply-chains. Export factoring solutions stemming from this alliance will aim to offer local exporters much-needed liquidity and economies of scale, while contributing to boosting Bangladesh’s economy.
Receivables finance, and specifically export factoring, allows exporters to accelerate cash flow through unlocking working capital and, in doing so, to conduct effective cross-border trade transactions. Suppliers, under such an arrangement, are paid immediately when goods are shipped. In turn, buyers enjoy extended credit and pay the invoices as per the sales contract.
Soheil Zali, Regional Commercial Director – Asia, Tradewind Middle East Limited,commented,“We believe this collaboration between Tradewind and NCC will support SMEs across Bangladesh to conduct exports on Open-Account credit terms while enjoying extensive payment risk coverage. Tradewind recognizes the pandemic has generated a need for flexible trade solutions without employing the use of dated financial instruments or tying up fixed assets to secure financing. We want to provide Bangladeshi exporters with practical and scalable liquidity management solutions to become more competitive and agile.”