In the wake of continued disruption to global supply chains due to the Covid-19 pandemic, international trade finance provider Stenn on Tuesday (August 11) launched a $500 million fund to support the restart of global trade.
The Stenn Covid-19 Recovery Program aims to deliver working capital liquidity for importers to support their suppliers’ return to production. Cross-border trade is a critical driver of economic growth and supply chains remain severely impacted by pandemic shutdowns.
Under the program, importers can go back to pre-Covid-19 payment arrangements under open account terms, allowing them time to receive and begin selling goods before payment is due. Their suppliers are meanwhile paid at shipment of goods, providing upfront funds for operating expenses such as materials sourcing for subsequent orders. Stenn’s Covid-19 program offers special funding rates to export suppliers in over 100 countries across a wide range of consumer and industrial sectors.
Stenn has optimised timelines to facilitate a fast return to trade. Importers are granted a funding amount within 48 hours and can invite their suppliers to get paid quickly using Stenn’s fully digital platform.
Kerstin Braun, President of Stenn Group, commented: “Before the Covid-19 pandemic exporters, particularly those in emerging economies, lacked access to trade financing solutions, as evidenced by the $1.5 trillion trade finance gap. This global health crisis has put global supply chains under even more strain. Stenn is committed to supporting companies involved in international trade to get back to full production.”
Sea News, August 12