Trade finance provider Stenn International has announced a multi-million dollar platform to provide smaller Asian exporters an alternative to letters of credit (L/Cs).

The platform is managed by UK-based Stenn, which is also providing some of the capital alongside Crayhill Capital Management, an alternative asset management firm based in New York.

SME receivables

Stenn says it has launched a US$300 million financing platform to expand its capacity to help suppliers win and maintain buyers of their products in developed markets.

The platform will acquire up to 120-day trade receivables from small- and medium-sized enterprises, particularly in China and Southeast Asia, who produce and export goods for sale to US, European and other global buyers.

Small Asian exporters

Stenn says its financing solutions are aimed at small Asian exporters of goods such as clothes, shoes, toys, childcare supplies, home goods, hardware and electronics.

The solutions offer payment for goods immediately after shipment, eliminating the delay and uncertainty of payment collections from buyers.

L/C alternative

According to Stenn's CEO, Walter Colebatch, importers are "less willing to tie up their own capital in providing L/Cs to smaller suppliers."

"This had, until now, left the manufacturers with few viable financing options to support their growth and participation in the global supply chain," he added.

Stenn currently has offices in London and Singapore, and expects to open offices in Hong Kong and New York in the coming months.

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