Global Trade Finance Market 2016-2020: High Involvement of Clearing House and Trade Through Financial Market Integration - Research and Markets

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Oct 10, 2016, 11:10 ET

DUBLIN, October 10, 2016 /PRNewswire/ --

Dublin - Research and Markets has announced the addition of the "Global Trade Finance Market 2016-2020" report to their offering.

The global trade finance market to grow at a CAGR of 3.77% during the period 2016-2020.

The report covers the present scenario and the growth prospects of the global trade finance market for 2016-2020. To calculate the market size, the report considers the revenue generated by banks from the structured trade finance, supply chain finance, and traditional trade finance market. The report also includes a discussion of the key vendors operating in this market.

The current trend of online receivable financing has attracted a lot of key market players, competitors as well as the customers to have open competitive auctions and is mostly bid by a global network of accredited institutional buyers. Traditional financing is considered more expensive. So, there are many industries that have shifted their focus to the online receivable financing platforms, which are helping companies to fulfil their working capital needs on a day-to-day basis. They are mostly used as a part of asset-based lending solutions, as also in factoring deals because these are considered a collateral component in business lines of credit. Competitive prices can be achieved due to the reduction in the cost of capital. The most advantageous approach is the lack of a long-term contract, all-asset lien, covenants and personal guarantees in case of online receivables financing.

According to the report, one of the key drivers for market growth is the improved inventory management. Inventory is considered one of the important items on a company's balance sheet. Companies focus on a balancing act wherein sufficient inventory is at hand to meet demand without affecting cash flow. Organizations always focus on having optimal inventory levels with the setup of robust systems which can accurately track and maintain the control of inventory systems through various other internal processes. This may help to manage vendors and customers in the supply chain and enable the company to track inventory performance, monitor demand patterns, maintain accurate inventory counts, and ensure that suppliers adhere to their commitments over the forecast period. Such efforts may lead to improvements in vendor-managed inventory techniques.

Further, the report states that export factoring issues will be a challenge for the market. Export factoring is a service that is offered following an agreement between a factoring company and an exporter. As per the agreement, the factor buys the exporter's short-term foreign account receivables for cash at a discount on the face value. While doing so, the factor takes a risk on the ability of the foreign buyer to pay and handle collections on the receivables. The top vendors in the international receivable financing and domestic factoring financing need to focus more on the barriers.

Key vendors

BNP Paribas
Citigroup
HSBC
JPMorgan Chase
Mitsubishi UFJ Financial

Other prominent vendors

ANZ
Arab Bank
Bank of America Merrill Lynch
BNP Paribas
BNY Mellon
Capital
Commerzbank
Credit Agricole
Deutsche Asset & Wealth Management
Deutsche Bank
Factor Funding
Goldman Sachs
Itaú Unibanco
Morgan Stanley
New Century Financial
Nordea
Paragon Financial
Royal Bank of Scotland
Royal Bank of Scotland
Santander
Standard Chartered Bank
Sumitomo Mitsui Financial
SunTrust Bank
UBS AG
UniCredit
Wells Fargo

Key Topics Covered:

Part 01: Executive summary

Part 02: Scope of the report

Part 03: Market research methodology

Part 04: Introduction

Part 05: Market landscape

Part 06: Geographical segmentation

Part 07: Market drivers

Part 08: Impact of drivers

Part 09: Market challenges

Part 10: Impact of drivers and challenges

Part 11: Market trends

Part 12: Vendor landscape

Part 13: Key vendor analysis

Part 14: Appendix

For more information about this report visit http://www.researchandmarkets.com/research/52h2cw/global_trade

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SOURCE Research and Markets