Many suppliers may have limited access to trade finance which could potentially constrain their growth. They may also want a diversified portfolio on their funding sources. A recent report by the Asian Development Bank4 highlights that 40% of trade finance applications rejected by banks were from small and medium enterprises.

The three organisations bring their respective expertise to this collaboration: Olea brings its robust risk management practices, structuring and distribution capabilities to tap alternative liquidity pool, Refinitiv contributes through its access to supply chain communities, and Seabridge TFX offers technology to manage risks leveraging real-time information and alternative data feeds from Refinitiv that cover the entire trade cycle in addition to the close proximate access to suppliers.

Amelia Ng, CEO of Olea said: “Olea supports sustainable trade finance. The pandemic has caused supply chain disruptions globally and made it increasingly challenging for companies to obtain financing. Olea believes in technology as a proven path to reshaping how supply chains are financed. This partnership aims to deliver supply chain solutions with renewed vigour."

Through this partnership, the parties will jointly develop, market, and launch distinctive working capital propositions for the greater good. The collaboration is expected to be a win-win for participants across the ecosystem, for both investors and suppliers alike. Investors will get robust support in risk assessment and management while suppliers will obtain competitive and diversified financing options. The partnership will be achieved through analytic-led risk management and end-to-end digitised solutions delivery.

Neil Pabari, Global Head of Focused Markets at LSEG said: “It is clear that in the supply chain, advances in technology have helped trade to continue despite a number of disruptive challenges in recent years. By leveraging Refinitiv’s scale, platform and data assets, our ambition through this partnership is to help the ecosystem digitise as we believe it will help a wider group of buyers and sellers reduce cost, enhance efficiency and enable greater access to alternative sources of financing.”

Bhushan Rao, CEO/Founder of Seabridge TFX added that: “The aim is to drive transparency and efficiency in trade and supply chain financing for investors through risk assessment and management solutions such as workflow digitisation and data analytics, with the ultimate objective of benefitting SMEs with access to timely and cost-competitive financing.”