Helping SME with their working capital needs – Trade Finance

Small to Medium size enterprises (SME) continue to face challenges securing finance from traditional sources such as banks due to stringent lending criteria, collateral requirements, and perceived higher risks of these businesses. Recognising these challenges, Aerapass is working to improve access to finance for SME more generally and, in particular, trade finance sector.

Aerapass plays a significant role in facilitating trade finance by leveraging technology and innovation to provide efficient and accessible solutions. Our digital platforms connect buyers, sellers, and liquidity provider(s), creating a streamlined ecosystem for trade finance. Our platforms enable businesses to submit trade documents, apply for financing, and communicate with relevant parties online. By digitizing the trade finance process, we at Aerapass enhance efficiency, reduce paperwork, and enable real-time tracking and transparency.

Our goal is to create a marketplace where businesses can access a wide range of trade finance providers (such as funds / investors). Our platform is designed to simplify the process of seeking financing by allowing businesses to submit funding requests and receive multiple offers from different providers. This expands access to trade finance options, particularly for SMEs that may face challenges in securing traditional bank financing.

The following chart illustrates our business model.

Our solutions enable early payment to suppliers based on confirmed invoices, providing them with immediate liquidity. By leveraging technology, such as blockchain or digital payment platforms, we can enhance transparency and traceability, mitigating risks and improving working capital for SME businesses.

Our integrated credit assessment capabilities utilise state-of-the-art credit assessment models that analyse various data points, such as financial statements, transaction history, and alternative data sources, to evaluate the creditworthiness of businesses. Credit assessment process streamlines the underwriting process, reduces manual effort, and improves access to trade finance by enabling quicker and more accurate credit decisions. Other risks associated with trade finance including operational risk, fraud risk, ALM / CTF risk, transport risk, exchange risk and political risk are also identified and managed on Aerapass platform.   

Our cross-border payment solutions simplify and expedite international trade transactions. These solutions leverage digital payment platforms, virtual wallets, and blockchain technology to enable faster and more cost-effective cross-border payments, reducing the reliance on traditional correspondent banking networks.

It’s important to note that the specific motivations for factoring may vary depending on the unique circumstances and needs of individual businesses. Aerapass recognises these varying business needs and have in place flexible solutions designed to streamline their trade operations.