COPENHAGEN/MUMBAI: To make overseas exports easier for Indian companies, especially SMEs, Denmark-based AP Moller – Maersk, one of the largest container shipping companies globally, has set up a new business vertical, Maersk Trade Finance.
In a nutshell, Maersk Trade Finance is a digital platform with pre-shipment and post shipment credit facilities. It enables exporters – manufacturers or traders – to not only get the cargo shipping services online but also apply for funds that can be used either to pay for the shipment or to invest in new orders.
For Maersk, which has around 7,000 customers in India and, according to the company, enjoys 18 per cent market share here, the new trade finance vertical could not only generate additional revenue but help growing market share also, especially in the SME sector. Cost, time and ease of access to funding are the features that Maersk is betting on. Unlike banks that generally provide trade finance, Maersk does not look at the borrower’s balance sheet while considering the loan.
“The goods shipped are the only thing we mandate, which serves as collateral. We do not ask for any other collateral or security, helping the SMEs to avoid the collateral trap,” Sardana said.
The shortage of trade finance across businesses is cited as one of the main obstacles in the global commerce. Risks related to import-export operations compel lenders to raise the barriers for borrowers, making access to funds difficult for SMEs.
