Flexport launches trade finance solution
25 / 07 / 2019
Flexport is launching a trade finance solution that it claims will help companies alleviate capital constraints caused by the US-China tariffs.
Flexport said that because all client shipments are managed on its digital platform, with data down to the SKU level, it views risk differently than a bank would because it has visibility into clients’ supply chain and business health.
That allows Flexport to provide “flexible, customised terms” that help clients to “reinvest into their supply chains, develop new products, or fund an expansion”, the company said.
The forwarder said that more than 60% of its shipper clients have had products affected by the tariff increases.
Vice president of Flexport Capital Dan Glazer said: “When I speak to our customers, one of their biggest obstacles to growth is a lack of working capital. They’re growing like crazy, but they don’t have the liquid cash to invest in new products, fulfill orders, pay suppliers, move their freight and cover customs all at the same time.
“In the past year or so, the US-China tariffs have made this working capital constraint even worse. And, we are now at an inflection point. Unless we can provide companies with a way to manage their finances in a sustainable, long-term manner, both US businesses and the economy will stagnate. By helping companies through smart financial instruments designed for the global trade process, businesses will be able to better steer through the chaos and find new ways to thrive and innovate.”