Companies in Asia Tap into Strong Supply of Trade Finance

Across Asia pricing has fallen to such low levels that international trade finance has become a true buyer’s market.

Consequently, many companies are employing trade finance as a source of low-cost financing.

In contrast to the U.S. and Europe, relatively few Asian companies use trade finance mainly to mitigate individual counterparty risks and exposures.

From April to June of 2014, Greenwich Associates conducted 423 interviews in trade finance with financial officers (e.g., CFOs, finance directors and treasurers) at companies in China, Hong Kong, India, Indonesia, Malaysia, the Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam. Subjects covered included product demand, quality of coverage, and capabilities in specific product areas. The 2013 Asian Large Corporate Trade Finance Study does not include Indonesia.

The data reported in this document reflect solely the views reported to Greenwich Associates by the research participants. Interviewees may be asked about their use of and demand for financial products and services and about investment practices in relevant financial markets. Greenwich Associates compiles the data received, conducts statistical analysis and reviews for presentation purposes in order to produce the final results. Unless otherwise indicated, any opinions or market observations made are strictly our own.

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