First Post, What Is Bob’s Bazaar All About?
Trade Finance for Solopreneurs- And No Dummies You Are 💖
Hi, I Am Bob and I Run This Bazaar
I am a 37-year-old from London living overseas with my fiancé and my dog (and a cat). A decade of a career in finance led me to explore my entrepreneurial spirit.
My first businesses were traditional and also focused on technologies. Partners joined me. Our reach was world-wide. I also recruited, full-time employees and freelancers. Before Covid hit us all, we launched a wine export-import business. And a small raw materials trading company. We wound down both companies last year.
The Story of A Solo Entrepreneur, or Solopreneur
I am now again a solopreneur. My dream is to set-up my own content production company. As I love to indulge my creative side- whether it is writing, drawing or making stuff with my own hands. Anything that sparks my imagination excites me to pursue it. But that is not my full time focus right now as my latest venture just started (I will get involved in this later for sure). I need more time to get everything done as I import and export some stuff by myself.
My (Tiny) Company Imports and Exports Stuff- Maybe Just Like Yours!
My international trade activity covers many countries. Large ones such as U.S., U.K., France or India, and smaller ones such as Thailand or Mexico. Yet that is exactly what excites me the most. Trade finance is the less interesting part, the boring part. But it is the fundamental and necessary part.
My previous firms accessed trade financing from small banks and financial technology providers. My current company continues to do so. For one main reason, these providers of trade finance solutions help(ed) me drive up sales. And also expand to more and new international markets, out of my home country. I also lowered several risks to my business and revenues. This diversification is the most efficient insurance againt potential downturns or recessions in my base markets.
I want to share my experience and knowledge with you, and also give back the largest number of insights to you. My attention aims at business-people and entrepreneurs. Even aspiring ones such as students or (disgruntled) employees. Freelancers are welcome- you already run a microenterprises or a very small business. Either full-time or on the side. You can be on the exporting, importing or both sides of international trade in goods and services. You do not need to be an expert about trade finance. You worry or are even afraid to go down the trade finance route. This space is for you and is here to help you!
I will not tell you who the bad or good guys are in trade finance! That is a matter of perspective, personal choices, professional connections, and reputation. But I will tell you what to look for, where to look for it and how to do it. Times are tough so you need increasing chances to expand and grow your business.
This Journey Has Just Begun
I will answer several of the big questions you have now about trade financing your own business. Be it now or later. And I will simplify all key definitions and terms to its most straightforward form. So that you ingest and digest them quickly but surely. Such as:
Why is financing for my international trade needed?
What is the role of trade finance in the expansion of my international business?
What is trade finance for a solopreneur (or microenterprise) like me in the digital age?
Is trade finance suitable for me and the size or stage of my business?
What methods are used to finance international trade for a small firm like mine?
How can I finance my exports or my imports?
How do you get a trade finance loan to trade and who does it work?
What is the process of trade finance with a bank? Or a fintech, alternative trade finance provider...
Why trade finance is high risk for a modest enterprise like mine?(Yet with a little bit of help, you can overcome this)
These are many questions and we will go through each one of them. This newsletter is all about trade finance for beginners- but not in a dummies way. At the same time, I will share a ton of resources and tips about this hidden but giant world of trade finance. So that you do not get lost. For example, I will not only list my favourite blogs, news and information sources. But also all the databases, softwares and workflows I like to use day-to-day. Including processes and industry insights about international trade and finance.
So stay tuned!
Bob's Jargon Buster
Trade finance refers to the various financial products and services facilitating international trade. It helps businesses manage risks associated with imports/exports of goods and services. Such as the risk of non-payment by a buyer or the risk of not receiving payment for goods already shipped. Solutions include short-term loans, trade credit, letters of credit, and other financial instruments. These instruments help businesses finance trade transactions and manage their cash flow. So they can expand into new markets and grow their operations and revenues.
A solopreneur is a term used to describe a person who is self-employed and runs a business on their own. Solopreneurs are small and independent business owners who do not have any employees. They are responsible for all aspects of the business. From managing finances and marketing to providing products or services to customers. Solopreneurs often have a high level of control and flexibility over their work. Yet, they also bear a greater level of risk and responsibility.
A great definition of microenterprise is here. I disagree with it though. Most microenterprises specialize indeed in providing goods or services for their -local- areas. But this is only temporary, if you know how to access capital. Exporting your goods or services can only benefit you. Depending on your home base, 90-99.9% of the world’s potential customers (of your business) live abroad.
The Memes Bazaar
What do you think about today's issue?
That’s all for today folks. I currently conduct a series of interviews with solopreneurs in the international space. If you are one, then I would love to know what you do and how you do it. Whether you use trade finance or not. And if we both agree on it, I want to feature your story in my space here (it is free).
Hit me up on Twitter (@finbzr) if you need anything. Only ask, fill in this survey in less than 59seconds to tell me what you think about this article.
Stay hungry and see you next time!
Disclaimer: I just got started so let's see where this is going and whether it needs a disclaimer.