Executive summary

During the current times of high inflation, record energy prices and geopolitical uncertainty, we wanted to take stock on SME attitudes toward trade finance in Europe.

Both funded and unfunded trade finance products are often a lifeline to cross-border SMEs, particularly during economic downturns.

Trade Finance Global (TFG) surveyed firms in the target regions of Belgium, the Netherlands, Germany, and the UK to better understand SMEs’ trade finance usage norms and their propensity to pay for new or additional trade finance products and services.

TFG also compared macroeconomic export data, provided by Trade Data Monitor, to assess sentiment towards digital trade finance and export opportunities, by trading partner and commodity type.

The SME survey asked respondents to indicate their interest in trade, inventory, and invoice finance. The survey also investigated the likelihood of SMEs to pay for these services at certain annualised price points.

Based on our independent market analysis and survey data, TFG believes that there is sufficient market demand at the target 4%-8% price point (annualised) for trade finance lending over the next 5 years.

Based on our research and survey data, the beneficiaries of new trade finance products would be for firms that generate $30 million or less in revenue, and hold up to $2 million of inventory.

DEEPESH PATEL Editorial Director Trade Finance Global

MARK ABRAMS MD, Global Head of Trade & Receivables Finance Trade Finance Global