Where Can SMEs Go When Traditional Banks Reject Them?
SMEs are often rejected by traditional banks due to a variety of reasons. These can include poor credit scores, being too new, having an unproven management team, poor cash flow, unfavourable debt to income ratios or being deemed high-risk.
Such rejections can severely affect SMEs involved in export/import trade. In fact, the ADB reports that 60% of rejected SME’s end up losing the international trade they were trying to finance.
If your application was rejected, do not give up! It is not the end of the road. Today, there are alternatives for SMEs through banks and financial institutions, such as Euro Exim Bank, which specialize in trade finance for SMEs.
Why Alternative Trade Finance Works for SMEs
Flexibility – Banks and financial institutions that specialize in accommodating SMEs are more flexible. They will provide you with the flexibility you need to complete your international trade transactions.
Specialized, Even Bespoke Solutions – These establishments also provide many products and services that are especially designed for SME’s such as unsecured credit lines, alternative payment platforms (like RippleNet) and other facilities such as factoring (or invoice financing); which is basically selling your invoices at a marginally discounted value to your bank in order to access funds.
Faster Approval & Increased Accessibility – SME trade finance specialists, such as Euro Exim Bank, also provide much faster approval and access to funding than traditional banks. This allows your business to be agile and quickly adapt to your clients’ needs. Additionally, you also gain access to an economic, dynamic and capable payments platform that allows you to send and receive payments in over 150 currencies, reducing transaction costs and exchange rate risk.
More Open & Welcoming – Unlike traditional banks, these institutions are also more welcoming of high-risk businesses and transactions to and from emerging and frontier markets that may not be looked upon favourably by more traditional service providers.
If you are looking to give your business the best chance of success in the face of rejection by traditional banks, speak to one of Euro Exim Bank’s qualified professionals today.