Maersk launches trade finance service
Every move of shipping giant Maersk has always been the focus of the industry. Recently, news that it will provide a new vertical business Maersk Trade Finance once again attracted people's attention.
According to news, Maersk recently announced that it will provide a new vertical business-Maersk Trade Finance, which is expected to reach 200 million US dollars in India in the next 12 to 18 months, mainly for SMEs.
In short, Maersk Trade Finance is a short-term financing or credit-facilitated electronic platform for shippers, enabling Maersk customers not only to enjoy online shipping services, but also to apply for capital loans based on Maersk shipping orders, including before / after shipment. Can be used to pay for shipping or other purposes.
It is understood that the establishment of financing services has become the common choice of many large enterprises around the world. For example, Odendorf in Germany also provides lease financing and loan services for ships and aircraft. In addition, at the beginning of the establishment of COSCO SHIPPING, it also established the financial sector as one of the group's pillar industries and developed ahead. According to reports, COSCO SHIPPING already has financial licenses for banks, funds, insurance, insurance brokers, and asset management.
According to reports, Maersk ’s first pilot country for this service was India. At present, Maersk has about 7,000 customers in India, accounting for 18% of the total market. The provision of this new business can not only generate new revenue, but also help expand market share, especially in the SME sector.
Vipul Sardana, who has six years of banking experience and joined Maersk in 2012, said that he has signed 95 customers in India, about 90% of which are SMEs. The loan interest rate is based on the London Interbank Offered Rate (LIBOR), which is generally 2.5% higher than LIBOR ~ 5.0%, the interest rate is based on the customer's financial status and historical credit history, up to 80% of the value of the loan can be obtained.
Maersk Trade Finance does not look at the balance sheet like banks provide trade finance and then considers. The only point Maersk authorizes loans is to use the goods carried as collateral. No other collateral or guarantees are needed, helping SMEs to avoid the pitfalls of mortgages.
It is worth mentioning that as a foreign entity in India, it is not possible to use rupee loans, only foreign currencies, and import finance. If there is no other way to expand trade financing services, Maersk will consider applying for a bank license in India.
"The more typical scenario is that it is difficult for SMEs to get foreign currency. We will be able to provide this, which can reduce the overall cost of customers."
Following India, Maersk's footsteps will move to Singapore, the Netherlands, Spain, and North America. ) And the United Arab Emirates.
The shortage of cross-industry trade finance is considered one of the main obstacles to global trade. Risks related to the import and export business have forced banks to raise loan thresholds, making it difficult for SMEs to apply. The arrival of "Maersk Shipping Finance" can bring new vitality to the industry. It is worth looking forward to.