Benefits of Getting More Singapore Commodity Trade Financing – The Singapore market is one made up of many traders. The small nation started out as a trading post in the southern tip of asia and as time went on developed into one of the most prosperous ports in the world.
The trade that goes past Singapore through the Meleka Straits constitutes 25% of the world’s trade volume and makes Singapore one of the most important stopping points in the world.
This has helped it to also become one of the main countries for finance.
Singapore has taken advantage of this and become one of the leading financial capitals of the world. The Singaporean Dollar has also become a strong currency that helps it to command lots of goods and services with its powerful exchange strength.
Contributing to the huge trading volume of Singapore is commodity trading.
Commodities such as food stuff, like rice, cocoa, salt and sugar are some of the more common things that everyone needs and has to be brought from east to west and some from the west to east.
Singapore is also one of the major ports for Oil Trading. Having some of the most important Crude Oil processing plants located in Singapore.
Trading is a very low margin game, and to be able to make more money from the low margin, one needs to either trade more or have more funds to carry out those trades.
This is where the banks and the financial institutions step in to provide that extra funding and that extra boost that Commodity Trading houses will needs.
So let us start to explore, what are some of the “Benefits of Getting More Singapore Commodity Trade Financing”.
1. Allows you to preform more trades to improve revenue
The fact of getting more trade line is the fact that you will be able to use it for multiple trades. When you want to trade more, you can use it to enter more trades across the year. This means a bigger multiplier than the actual line amount might translate to a lot more revenue.
A lot more revenue means you get more profits for yourself and also your traders.
This will mean that you can expand your business and offerings.
2. Getting some trade lines gives other banks more confidence in your business
Getting access to some trade lines from the banks will also mean that this few banks have confidence in you.
Getting yourself ahead in this manner means that you can eventually build up more and gain more banks as they get more confident in you.
This means even more revenue and profits as time goes by!
3. Rates get betters with better usage and better returns of your business
For a starter, you will likely get higher interest rates, but as you build up your strength in the market, you will get better rates.
With better rates means better trading returns
This is the best thing that can happen for a business.
K Cloud Accounting is one of the leading accounting services providers in Singapore. We have a full suite of corporate services that allows us to assist startups and SMEs to build up their businesses and give them the support they need to grow their business.
If you need help with this, speak to us so that we can link you up with our trusted consultants in this field.
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