In trade finance, bigger is not always better

Despite the attention Asia-Pacific’s trade flows are receiving from local, regional and global transaction banks, small and medium-sized enterprises SMEs and large local companies can still find it hard to access the right kind of trade financing at the right kind of prices. Some of the more local and regional banks may not be willing to offer customised structures to smaller clients due to the cost involved. Others may lack an SME business altogether, and focus instead on their high-margin multinational corporation MNC clientele.

This has left a lucrative gap in the market for smaller and nimbler independent trade finance specialists with the risk appetite and capacity to customise...