A new trade finance bank – Neotrade – has launched its operations in the UK. Its mission is to become the “first” digital trade finance bank operating globally.
Launch of Neotrade in the UK
The Manchester-based bank provides finance to small and medium-sized enterprises (SMEs) using an artificial intelligence (AI)-based scoring system to deliver a “personalised finance experience within minutes”.
“Small and medium-sized enterprises (SMEs) are the backbone of global trade,” says Neotrade, citing that nearly half of global trade volumes come from this segment.
“At the same time, many SMEs are struggling to get the financing they need, as banks are unable to process most applications. More than 40% of requests are automatically rejected. Moreover, as agile companies, SMEs need a simple, transparent and fast means of financing,” he adds.
Neotrade claims to serve this untapped market with a mission to “shape the trade finance market for SMEs in the future and fill market gaps”.
Through a four-step process, Neotrade says it can take payments from vendors and customers can then repay based on their chosen payment terms.
“We believe that international trade is a key driver of development in the world. Companies must have access to stable cash flow all year round”, comments Neotrade.
“In the face of the unexpected, the conventional norm is to watch, wait, and lay low. We want to help businesses stay safe while anticipating all disruptions. »
