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Trade Loan Services Market

Trade Loan Services Market Size, Share, Competitive Landscape and Trend Analysis Report by Finance Type, by Offering and by Service Provider : Global Opportunity Analysis and Industry Forecast, 2023-2032


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Author's: | Onkar Sumant
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Trade Loan Services Market Outlook - 2027

Globally, the trade loan services industry is experiencing growth and is estimated to grow owing to the growing trade activities in trade across the globe. Trade loan is a credit facility provided by different financial firms to companies engaging in exchanging goods and services between entities beyond or out of the region. Such loans typically act more as fully cycle of credit facility that covers the cash difference during the time it needed to pay for goods bought as well as the time it collects the proceeds as from selling of certain goods. Trade credit is useful for anyone who participates in huge number of overseas and domestic trades. In addition, duration of the loan ranges different from one creditor to the other.

COVID-19 scenario analysis:

  • Impact of COIVD on the trade industry is highly adverse.
  • Major business and ports are being forced to close, upsetting global supply chains, and having a major impact on the international trade. In addition, banks which have been charged with sustaining the influx of trillions of dollars in trade financing, are now forced to work out where to keep trading activities to proceed as normal, in a manner that restricts the transmission of the virus. 

Top impacting factors: Market Scenario Analysis, Trends, Drivers, and Impact Analysis:

Rise in need to improve the cash management facility by SMEs and favorable government regulations across the globe to improve and promote lending process will drive the growth of the Trade Loan Services Market. In addition, surge in need to comply multiple lending applications in one system fuels the growth of the market. However, lack of trust lack of trust and transparency in lending process in Asian countries and high interest rate charged by the lenders hampers the growth of the market. Furthermore, emergence of SaaS based loan services across the globe is expected to provide lucrative for the market.

The global trade loan services market trends are as follows:

Tech infusion for effective lending management:

Technology is bringing new shapes to the industry. Presently, much developments in trade finance systems are exclusively focused on digitizing exchange records such as invoices, payment contracts, bills of exchange, airway expenses and credentials of origin to facilitate quicker delivery and more effective monitoring of compliance with international trade regulations and customs. Asian Development Bank estimates that 80% of banks agree that digitization would bring down the cost of fulfilling compliance requirements and that emerging technology would make it simpler to assess SME risk more effectively. In order to take advantage of these prospects, a variety of Fintech firms, as well as mainstream technology businesses such as IBM, are developing products or services to help manage the dynamics of foreign trading.  Traydstream partnered with banks and companies to digitize operations, reduce costs, and slash expenses.

Regulatory revisions to improve and promote trade lending/finance:

Around 80 to 90% of global exchange depends on trade finance. As business confronts illiquidity problems, several countries and the World Trade Organization have updated rules to resolve issues and promote enhanced lending. Significant global development banks and organizations such as the International Finance Corporation (IFC), the Inter-American Development Bank (IDB), the European Bank for Reconstruction and Growth (EBRD) and the Asian Development Bank (ADB) have recently enhanced their trade facilitation initiatives to effectively improve trade lending. The purpose of the resolutions was to provide short-term loans of working capital and grants of credit to small and medium-sized enterprises. This helps credit lending institutions to safely provide loan to trading agencies as lenders were backed by government guarantees.

Key benefits of the report:

  • This study presents the analytical depiction of the global trade loan services market along with the current trends and future estimations to determine the imminent investment pockets.    
  • The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the global Trade loan services market share.     
  • The current market is quantitatively analyzed to highlight the global trade loan services market growth scenario.         
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.    
  • The report provides a detailed market analysis based on the present and future competitive intensity of the market. 

Questions answered in trade loan services market research report:    

  • Who are the leading market players active in the trade loan services market?
  • What would be the detailed impact of COVID-19 on the market?
  • What current trends would influence the market in the next few years?
  • What are the driving factors, restraints, and opportunities in the trade loan services market?
  • What are the projections for the future that would help in taking further strategic steps?

Trade Loan Services Market Report Highlights

Aspects Details
By Offering
  • Letters of Credit
  • Bill of Lading
  • Export Factoring
  • Insurance
  • Others
By Finance Type
  • Structured Trade Finance
  • Supply Chain Finance
  • Traditional Trade Finance
By Service Provider
  • Banks
  • Trade Finance Houses
By Region
  • North America  (U.S., Canada)
  • Europe  (UK, Germany, France, Spain, Italy, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
Key Market Players

Banco Santander SA, Euler Hermes, HSBC Holdings Plc, Bank of America Corp., JPMorgan Chase & Co., Crédit Agricole Group, Citigroup Inc., Goldman Sachs Group Inc., BNP Paribas SA, Asian Development Bank

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Trade Loan Services Market

Global Opportunity Analysis and Industry Forecast, 2023-2032