Dubai-headquartered logistics firm DP World has launched a new fintech platform that covers trade, logistics and inventory finance, aiming to accelerate SME importers and exporters.
Live since October 13, the Cargoes Finance platform offers a variety of pre and post-shipment financing products, as well as extended payment terms, the company says.
It also provides financing options for logistics processes, receivables and payables financing, and invoice discounting, and users can boost working capital by using inventory as collateral.
“Growing businesses can often lack the capital and resources required to drive global expansion, often exacerbated by prohibitive financial requirements and copious documentation,” says Mike Bhaskaran, DP World’s chief operating officer for logistics and technology.
“We designed Cargoes Finance to mitigate these constraints, unlocking new opportunities for SMEs to compete and reach a global market.”
The launch follows the August appointment of former Maersk Trade Finance executive Sinan Ozcan as senior executive officer and board director for financial services. DP World said at the time Ozcan’s “first project” would be to oversee the launch of Cargoes Finance.
Ozcan makes a statement, saying that companies are already reaching “more international customers that were previously cost-prohibitive to access”.
“Globally, small-to-medium-sized businesses handle 50% of trade, yet only a few have access to funding with little chance of it being approved,” he says.
The ADB found that fewer than a quarter of applications for financing came from SMEs, yet 40% of all rejected trade finance requests were from this segment.
DP World says Cargoes Finance requires “minimal documentation” and involves a simple online application process, with approval decisions made quickly using technology.
The platform is provided by DP World Financial Services Limited, a Dubai-regulated entity incorporated in May this year.
(Except for the headline, this story has not been edited by The Finance World staff and is published from a syndicated feed.)
