3.3 Closing remarks

Following the events of the pandemic and the Russia-Ukraine conflict, we at TFG have observed several phenomena at play in the macroeconomic environment, ranging from skyrocketing inflation to plummeting food availability.

These factors mean that any financing programme from the lender that targets SMEs and the mid-market could also be open to larger clients.

Some mid-market and corporate clients may be willing to accept a higher cost of capital in order to increase their trade volumes.

In the current environment, we see demand from many mid-market corporates and SMEs, which are looking for additional flexibility from their trade, inventory, and receivables finance partners - across structures, their asset base, and terms.

We have seen the same demand for liquidity increasing in the corporate space, coupled with a shortage of expertise from the trade finance industry.

Therefore, a bank offering that allows flexibility for the client, where there is a modest compromise on pricing, is an appealing offering as it sits in between clearing banks and alternative finance options.

Offering other trade services as part of the product set, should assist clients to develop their cross-border business.