TFB Online: Your Trade Guarantees in Just a Few Clicks

The Challenges of International Trade for African Businesses

In international trade, having reliable guarantees is crucial to maintaining financial stability and fostering business growth. Regarding Africa, the perceived risk of payment default is particularly high, which is a major concern for banks and international partners. A World Bank study reveals that around 70% of banks in Africa consider SMEs as high-risk borrowers, mainly due to economic volatility and the perceived lack of substantial guarantees offered by these companies.

As a business engaged in the trade of goods and services, you face several significant challenges when it comes to securing your international transactions:

1. Administrative Complexity: Setting up traditional payment guarantees, such as letters of credit, can be a lengthy and complex process. It involves many administrative steps and heavy bureaucratic management, which can slow down your business operations and increase transaction costs.
2. Limited Access to Guarantees: As an SME, you often encounter difficulties in obtaining payment guarantees, such as letters of credit or export credit insurance. The requirements for these guarantees can be strict and difficult to meet, limiting your ability to secure international transactions.
3. High Financing Costs: The costs associated with trade finance instruments, such as bank fees and insurance premiums, can be prohibitive for many African companies. High interest rates and additional fees increase the total cost of financing, thus reducing the profitability of your business transactions. As the World Bank study indicates, the cost of credit for African SMEs is often 10 to 15% higher compared to other regions.

These challenges significantly impact the development of your business. They slow your growth by limiting access to new international markets, tie up substantial funds, affecting your cash flow and your ability to invest in other essential areas. Additionally, they reduce competition by excluding you from certain markets, thereby restricting your business opportunities.

It is essential to overcome these barriers to the development of international trade in Africa by providing companies with reliable and accessible guarantee instruments.

TFB Online is designed to address the challenges of international trade in Africa. It offers quick and secure access to the Trade Finance Bond (TFB), an individual trade guarantee provided by ETC – Export Trading Cooperation. Based on the Stand-by Letter of Credit (SBLC) instrument and in accordance with the provisions of the International Chamber of Commerce (ICC), this guarantee provides reliable protection against payment default risks, ensuring the security and smoothness of your business transactions.

The TFB offers numerous advantages for businesses: it ensures and strengthens your credibility with partners, provides great flexibility for various trade transactions, optimizes cash flow management by avoiding the immobilization of funds, and facilitates access to new international markets, thereby increasing growth opportunities.

How Does TFB Online Work?

TFB Online is an online platform that allows companies to easily obtain a guarantee for their short-term financing requests. Here’s how it works:

1. Easily Submit Your Requests Online: Our platform is designed to be user-friendly, allowing you to submit your guarantee requests in just a few clicks.
2. Securely Pay Entry Fees: We offer secure online payment options with bank cards (VISA, Mastercard, or PayPal) to facilitate the payment of fees.
3. Receive Your Preliminary Agreement in Just a Few Days: Once these conditions are met, you will receive our preliminary intervention terms in a short timeframe.
4. Benefit from Your Guarantee: After your validation of our Coverage Agreement, we will issue the requested guarantee directly to your bank via SWIFT message.

In summary, TFB Online promotes the growth of international trade for African businesses by offering a reliable and accessible guarantee instrument. By overcoming challenges such as administrative complexity and limited access to guarantees, and helping to optimize financing costs, TFB Online allows you to strengthen your credibility and access new international markets more quickly.

To learn more about the Trade Finance Bond (TFB), follow this link.