Global Trade Solutions

Solutions For “Small and Medium Enterprises”

By: Mr. Neeraj SethiGlobal Trade Solutions

ContentsSME Page• Industry Overview – SME Profile & Potential 03• SME Classification – Sector / Product Wise 04• Indian Scenario – Key Challenges & Macro Solution 05 -06• Financing Options for SME 07• Broader Constraints 08

Why ‘Global Trade Solutions’? 09 - 10• Our Credentials • Our Services

Global Trade Solutions for SME • Products for Exporters 11• Chart Showing Transaction 15• Products for Importers 16• Domestic Factoring 20

Overview…. SME – Profile & Potential• SME Contributes 40% of Industrial Output, 35% of Exports & 1% of GDP• Predominant Role of SME’s in the Economy Due to – Its Number, Variety and

Involvement in all aspects of the Economy.• Creates Large Scale - Low Cost Employment Opportunities, 46 million employments,

creates one million jobs every year and produce more than 8000 quality products for the Indian & International Market

• As a result, MSMEs are today exposed to greater opportunities for expansion and diversification across the sectors. Indian market is growing rapidly and Indian industry is making remarkable progress in various Industries like Manufacturing, Precision Engineering, Food Processing, Pharmaceutical, Textile & Garments, Retail, IT (Information Technology), Agro and Service sectors.

• Uses Locally Available Units• Mobilises Small & Scattered Savings• Develops Entrepreneurship• Regional Development• Complementary Role to Support Large Sector• Basis For Innovations and Adaptations

Based on products, SMEs in India can be broadly classified into the following groups:

• Food products

• Chemicals and chemical products

• Basic metal industry

• Electrical machinery and parts

• Rubber and plastic products

• Machinery and parts excluding electrical goods

• Hosiery and garments

• Wood products

• Nonmetallic mineral products

• Paper products and Printing

• Transport equipment and parts

• Leather and leather products

• Miscellaneous manufacturing industries

• Other services and products

• Beverages, tobacco / tobacco products

• Repair services

• Cotton textiles

• Wool, silk and synthetic fibre textiles

• Jute, hemp and mesta textiles

• Other services

6

Indian Scenario – Challenges & Solutions• Audacity of Indian Entrepreneurs… • Quality Industrial Infrastructure• Rapid Change in Technology, Quality Standards• Growing Financing needs…Lack of Adequate Working Capital• Low Access to Formal Funds…• Lack of In-house Knowledge Centre…• High cost of Borrowings…• Low Access to Foreign Funds… • Low amount of Disbursals…• Other International Risks Involved (or unforeseen Risks)

Above factors making your Business not Grow or Expand….

Solution… Making the Business Flow…

• Increase the ‘Life of your Business’ and ‘Business of your Life’.• Turning ‘Potential’ into ‘Profit’

• Fuel the Growing Business Requirements• Look beyond the Traditional Options• Deal with International leader in Trade & Finance Solutions• Partner with International Experts

Upto breakeven

Long

Sustainable

growth

VC / Bank / Debt markets

Bank Finance / Debt/ IPO

Short term

Growth Loan/ Debt/ IPO

Mid Term

Creation PromotersLong Seed capital / Subsidy

SME Lifecycl

e

Suitable type

Duration of financing required

Suitable Channel

Start upVC / Angel investor / Subsidy/

Tax incentive

Long VC / Promoters

Maturity

Public Debt/ Capital Market

Short term

VC / Angel investor / Subsidy/ Tax incentive/

VC/ Angel Investor / Promoters

VC / Bank / Promoters

Capital Market/ Debt

markets

Financing options for SME

Banks perception of SME’s

• Lack of transparency of information• Low technology• Low capitalization / Collaterals• Vulnerable to market changes• High risk sector• Low profitability

SME’s perception of Banks

• No special schemes for

technology financing • Inadequate and delayed credit• Cumbersome procedures• Insistence on collaterals and guarantees• High rates of interest

Constraints in Financing SME’s..

Why GTS?• Leaders in Trade Finance Solutions with cumulative

experience of handling clients. • Over Rs.430 crs Disbursed in last 2.5 years. • Maintaining over 105 successful Client Relations• Our Ability to ‘Customize & Execute Solution’ to suit your

requirement, Providing Access to Funds.• Our Presentation skills to Present your Case to the Bank. • In-house Project Assessment and Appraisal Team doing all the

project report• Arrangement for Rating Reports with CRISIL & ICRA• Our In-house Credit Analysis Team (C.A.T)

• Work on Your Side to Help You Restructure and Win in all situations.

• Involvement of our Senior Management• Our Tie-ups, Network of Offshore Institutions• Dedicated Team Handling Segment of Clients.• Direct Meeting with Senior Team at Banking end.

• Transparency in our work and services

Products for Exporters

Export factoring provides immediate financing against your export receivables. Financing can be availed in Indian Rupees or in foreign currency.

“Best of Bankers and their teams are their to support you”

• Export CollectionsCollection of your commercial / shipping documents. For exporters, it is a more secure option than trading on open account terms because the shipping document will be delivered to the importer only against payment or an acceptance to pay on due date. We also offer instant email functionality, providing details on the export collection transactions, to a designated person in your office through our EDCA offering.

• Export FinancingWe can address funding gaps in your trade cycle and support your business, by providing you export financing options in foreign currency (at LIBOR linked rates) or in Indian Rupees, both at the pre-shipment and post-shipment stage. 

We can reduce country and bank risk, exposure to interest and exchange rate fluctuations and turn your receivables into cash. We also provide instant email advice.

 • Advance Remittances

Any payments into the country by overseas parties are processed expeditiously and credited to your account promptly.

Products for Exporters….. Contd..

Products for Exporters….. Contd..

• DC Confirmation Reduce bank and country risk effectively by enjoying the security of

payment commitments from both the issuing bank and the confirming bank. Concern Bank is one of the largest institutional banks with global correspondent banking relationships with over 2,500 banks. If MNC bank confirms the DC, and your documents are presented in compliance with the DC terms, payment from MNC Bank will be final.

  DC Transfer Ideal for buyers working with sourcing agents who require credit

cover. If you are a sourcing agent or the first beneficiary, we can provide guidance on the terms and conditions of your DC and assist in either fully or partially transferring your DC to the ultimate supplier.

• DC AdvisingWe have Swift key arrangements with most of the major banks, to facilitate straight through processing of DC advising. We also offer a real time electronic DC advising functionality wherein the DC is sent through an automated email to a designated person in your office.

• Trade Solutions Faster Communication and Quicker turnaround times. As both the Import and Export legs of the Transactions are handled by one bank you should receive funds 6 days earlier on average, Saving you Interest Charges

‘Peace of Mind’ ‘Pre and Post Shipment Finance’

• ForfaitingWe can arrange for an Offshore Financing on your export receivables to countries especially high / medium risk with medium to long credit periods.

Advisory services on any export transaction – Our local experts understand trade thoroughly, and they can provide value

to your business by performing advisory on a host of trade issues, including structuring DCs for your Export Business. 

Products for Exporters….. Contd..

Products for Importers

We offer a wide range of Import Services, delivered by our

experienced trade team, who will ensure that your business is handled Efficiently and without delay. What’s more, with the support of our Global Network, you can rest assured that we have representatives available to assist you, wherever in the world you do business.

“Best of Bankers and their teams are their to Support You”

• Issuance of documentary credits (DCs) and standby letter of credits (SBLCs)

When issuing DCs or SBLCs through Bank, you enjoy the following benefits:Detailed advice on structuring the instruments to meet your import requirementsComprehensive guidance on the DC terms and conditionsAccess to vast global expertise and resourcesAbility to Turnaround Transaction processing expeditiously

• Import Collections servicesThis is a cost-effective solution for trading internationally. Under this arrangement, the importer gets the shipping documents, after making payment or providing an acceptance to pay at a future date. We have established strict service standards, which ensure that you are promptly informed of any documentary collections drawn on you.

 • Import Financing

We can address funding gaps in your trade cycle and support your business, by providing you import financing options in foreign currency (at LIBOR linked rates) or in Indian Rupees. We can arrange import buyers' credit financing through Bank branches / group entities overseas, at internationally competitive LIBOR linked rates.

• Advance Remittances / Direct Remittances For your import payments to be made to overseas beneficiaries, we

provide a quick turnaround for payments by way of Telegraphic Transfer / Demand Drafts etc.

 • Issuance of shipping guarantees/delivery order or any other

guaranteeIn case the goods you import arrive before the transport documents, we could issue you a shipping guarantee / delivery order to facilitate taking delivery of the goods. You then have immediate access to your goods and avoid expensive storage fees and demurrage charges.

 • Advisory services on any Import transactions

Whatever your sourcing requirements, we are well positioned to provide you expert advice for structuring your import transactions. Leveraging on our global presence, we can offer solutions where Bank group entities can handle the transaction on both sides thereby ensuring a smoother, safer and a more cost-effective execution of transactions.

Domestic Trade Services

• Local salesDocumentary credit (DC) advising, confirmation and transferDiscounting of your local sale document / negotiation of your local sale documents drawn against documentary creditsReceivable financingIssuance of local guarantees

• Local purchasesIssuance of documentary creditsHandling of purchase documents under documentary creditsPayable financingIssuance of local guarantees

Thank You! We Look Forward to Partner you.

Please contact Mr. Neeraj Sethi Hand phone # 9711525419 Email: sme.neeraj@gmail.com