One of MODIFI's main aims is to expand the boundaries of international trade by increasing the number and scale of financial opportunities available to SMEs. That's why the company is delighted to confirm its latest deal - providing a Chinese hardware and tooling firm with a 4 million credit line. As a digital export finance provider, MODIFI is dedicated to supporting SMEs all over the world to overcome the challenges within the international trade arena.
In the Chinese market where this client is based, international trade has made an increasingly significant contribution to economic growth. Although this has been undermined somewhat by the COVID-19 pandemic, global trade is already experiencing a strong recovery. It is vitally important, therefore, that this trade remains as streamlined as possible to allow prosperity to continue its advancement - both in China and the other markets it trades with.
However, prior to signing a deal with MODIFI, the client faced several challenges that were difficult to overcome given its existing payment terms of 120 days. The fact that the client's credit risk protection policy means that all deals must be covered by credit insurance only added to the trade bottlenecks being faced. As a result, the client's existing credit limit was simply not sufficient to cover its needs.
With MODIFI's new client, an additional credit line was required to maximize an opportunity that had recently presented itself from a US buyer during what was already an extremely busy shipping period. By facilitating fast access to credit terms and communicating directly with all relevant parties, MODIFI ensured such an opportunity was not missed - benefitting both the Chinese exporter and the US buyer.
"China's share of global trade stands at around 15% - a figure that emphasizes the country's importance to international markets," says Tony Au, Regional Head of Greater China. "At MODIFI, we are proud to stand alongside the country's exporters by supporting them as they finalize deals around the world. We have a strong local team of experts in China that was able to offer direct communication as we completed this deal."