Capital Business Credit opens division for Asia
November 17, 2010
New division of CBC trade finance will promote trade between US importers and Asia based manufacturers
Capital Business Credit LLC (CBC), a commercial finance company specializing in providing supply chain financing and customer credit risk management solutions, announced the formation of a new division, CBC Trade Finance, headquartered in New York with offices in Hong Kong and Shanghai, China.
CBC Trade Finance will provide trade finance solutions to enhance and expand the trading relationship between U.S.-based importers and Asia-based exporters. According to The United States Trade Representative, the U.S. imported nearly $300 billion worth of goods from China in 2009 alone. Through CBC Trade Finance’s Supplier Early Payment (SEP) Program, the company will provide up to 120 days of open account terms to U.S.-based importers, while paying Asia-based manufacturers 100 percent of their receivables, without recourse, upon shipment of goods. CBC Trade Finance is independent and is not affiliated with any U.S. commercial bank.
In the U.S., CBC’s CEO Andrew Tananbaum will lead the division and Patrick Ho, CBC’s executive vice president and regional manager, Asia, will oversee CBC Trade Finance in Asia. All of CBC’s offices will offer the SEP Program.
Over the past 15 to 20 years, as China has become the U.S.’s largest trading partner, there have been significant systemic changes in the apparel, furniture and soft good manufacturing landscape. Where once there were thousands of manufacturers and hundreds of importers, today, consolidation has shrunk the market dramatically and created credit risk issues for both buyers and suppliers.
Patrick Ho stated, “In some cases, importers will receive their goods and provide them to their retail customers even before payment is due to the manufacturer – which is truly unique in the industry – allowing shelves to be stocked in an expedited fashion, enabling consumers to buy goods quicker. Effectively we are providing the capital lubrication to the international trade finance process.”
Tananbaum concluded, “CBC has decades of international trade experience and recognizes the paradigm shift that has taken place over the last decade as importers and exporters moved away from using letters of credit to using open accounts. As such, we created our SEP program. Because of the complexities involved with open account trading, a need exists in the marketplace for an offering that helps the supplier/manufacturer mitigate risk, provides efficient transaction processing and protects the receivables and inventories they finance. By creating CBC Trade Finance, U.S. importers and Asia manufacturers/exporters now have the ability to access financial credit facilities for the entire post shipment supply chain.”