(20 March 2012 – Australia) Industry consultants East & Partner’s latest Australian Trade Finance Markets report has revealed Need for Liquidity Support as the number one driver of Trade Finance needs across all segments monitored.Across all three segments there has been a significant increase in the
proportion of customers nominating ‘Need for Liquidity Support’ as their key
driver of Trade Finance needs. Since 2009 in the Institutional segment there has
been a 221.1 percent increase. 92.2 percent of all SME’s monitored now say
liquidity support is their number one need, up from 73.4 percent at the start of
2009.
With the demand for liquidity support experiencing such rapid growth as a driver
of trade finance engagement across the market, Growth in Underlying Trading
Business has witnessed the opposite affect with each segment saying it is no
longer a key driver for them.
This trend is most strongly observed in the SME segment with only 0.9 percent
reporting it is a key driver of Trade Finance needs. Growth in Underlying
Trading Business as a driver of Trade Finance needs has also experienced a
relative decrease of 58.9 percent and 85.6 percent for Institutional and
Corporate businesses respectively.
| Key Driver of Trade Finance Needs for Business Customers |
||||||
| | Institutional | Corporate | SME | |||
| |
% of Total |
% Change since 2009 |
% of Total |
% Change since 2009 |
% of Total |
% Change since 2009 |
| Growth in Underlying Trading Business | 13.4 | (58.9) | 6.4 | (85.6) | 0.9 | (92.6) |
| Need for Liquidity | 30.5 | 221.1 | 80.5 | 67.7 | 92.2 | 25.6 |
East & Partners’ Principal Analyst Paul Dowling commented, “Credit for importers
and exporters has been the dominant driver of their trade financing needs since
the GFC arrived. In particular, it has for many businesses the additional
attraction of being off-balance sheet and a complementary form of debt funding
for business”
“Added to this push has been a slowing appetite for Open Account trade financing
as trading businesses have become increasingly transaction oriented and keen to
shop their business around.” added Mr Dowling.
About East & Partners’ Australian Trade Finance Markets report
Six monthly research program run across the Top 500 Institutional (annual
turnover A$530+ million), Corporate (A$20-530 million annual turnover) and SME
(A$5 to 20 million annual turnover) markets with 1,850 directly interviewed
enterprises.
Market analytics include market share, share of wallet, product penetration,
export/import regions, supplier share of mind and life of service relationship
metrics. Customer analytics including bank-by-bank satisfaction performance on
key TF related factors, buying and churn behaviour.
Market Segments:
› Institutional – A$530 million plus
› Corporate – A$20-530 million
› SME – A$1-20 million
For more information or to interview East & Partners on this report, please
contact:
Sian Dowling
Marcomms & Client Services
East & Partners
t: 02 9004 7848
m: 0420 583 553
e: sian.d@eastandpartners.com