Trade Cash Gaps: What holds back your Cash Flows?
Trade Cash Gaps: What holds back your Cash Flows?Trade Cash Gaps are the differences between expected and realised cash flows in B2B trade, resulting from delayed cash receipts, increased costs and reduced revenues associated with trades. There are dozens of such gaps that we outline in this insights section
Over USD 10 Trillion in Interconnected Global Challenges
Over USD 10 Trillion in Interconnected Global Challenges
1. Late payments = cost $40 Billion per year (World Bank)
2. Trade at risk = $4.2 Trillion (Allianz)
3. Trade Finance Gap = $2.5 Trillion (Asian Development Bank)
4. Sustainable Development Goals (SDGs) Financing Gap = $3 to $ 5 trillion (United Nations)
5. Green Washing costs could exceed $1bn annually in fines globally (Sustainalytics)
Late Payments
Finance
Risks
Profits
Profits
More Gaps
Late Payments
Are customers paying after the agreed due date?
Are customers paying after the agreed due date?
Delayed receivables extend the cash-conversion cycle, absorb working capital and put supplier relationships under pressure.
How much invoiced cash remains overdue or uncollected?
How much invoiced cash remains overdue or uncollected?
Market intelligence on global jet fuel trade, covering refinery production and availability, aviation demand, pricing benchmarks and differentials, inventories, exportability, regional trade flows, freight, logistics and factors affecting physical trade execution.
Are you reluctant to chase late invoices for fear of damaging the customer relationship?
Are you reluctant to chase late invoices for fear of damaging the customer relationship?
Market intelligence on global jet fuel trade, covering refinery production and availability, aviation demand, pricing benchmarks and differentials, inventories, exportability, regional trade flows, freight, logistics and factors affecting physical trade execution.
Finance
Are viable orders stalled because the trade cannot be financed on acceptable terms?
Are viable orders stalled because the trade cannot be financed on acceptable terms?
Funding shortages and misaligned instruments can prevent buyers and sellers from completing otherwise sound transactions.
Why are cross-border payments still slow, opaque or costly
Why are cross-border payments still slow, opaque or costly
Funding shortages and misaligned instruments can prevent buyers and sellers from completing otherwise sound transactions.
Can you reliably forecast the cash to be realised from each signed trade?
Can you reliably forecast the cash to be realised from each signed trade?
Fragmented status updates and uncertain milestones weaken forecasts from contract through delivery, invoicing and settlement.
Risks
Are potentially profitable trades being rejected because their risks cannot be adequately assessed or mitigated?
Are potentially profitable trades being rejected because their risks cannot be adequately assessed or mitigated?
Uncertainty over counterparty reliability, product conformity, delivery, logistics and payment security can prevent otherwise viable transactions from proceeding. Structured risk assessment and mitigation help establish whether a trade can be executed within acceptable risk limits.
Is commodity or FX price volatility threatening the expected deal margin or settlement?
Is commodity or FX price volatility threatening the expected deal margin or settlement?
Poorly aligned fixing windows, exposure management and payment milestones can create margin and liquidity shocks.
Could sanctions, customs or document issues stop a shipment or payment?
Could sanctions, customs or document issues stop a shipment or payment?
Weak compliance controls can delay execution, block finance or expose counterparties to penalties and disputes.
Could sanctions, customs or document issues stop a shipment or payment?
Could sanctions, customs or document issues stop a shipment or payment?
Weak compliance controls can delay execution, block finance or expose counterparties to penalties and disputes.
Profits
Trade Profits gaps post-contract : lower revenues and higher costs erode trade margins
Trade Profits gaps post-contract : lower revenues and higher costs erode trade margins
Trade Profits gaps post-contract are the difference between the margin expected when the trade was contracted and the margin actually realised through execution and settlement. The objective is to protect the contracted economics. Pre-contract issues are in the Risk tab
Why is the profit realised from a trade lower than the margin expected when the contract was signed?
Why is the profit realised from a trade lower than the margin expected when the contract was signed?
Delivery delays, demurrage, quality discrepancies, unforeseen charges and execution failures can erode contracted margins. Continuous risk monitoring and corrective action help contain losses, protect profitability and preserve expected cash flows.
Have tariffs, duties or unexpected landed costs changed the economics of your deal?
Have tariffs, duties or unexpected landed costs changed the economics of your deal?
A contract can remain executable yet become uneconomic when the total delivered cost changes after price agreement.
Are disconnected systems and handoffs slowing down otherwise viable trades?
Are disconnected systems and handoffs slowing down otherwise viable trades?
Manual processes, dispersed stakeholders and inconsistent documentation raise cost and delay contractual execution
Profits
Trade Profits gaps post-contract : lower revenues and higher costs erode trade margins
Trade Profits gaps post-contract : lower revenues and higher costs erode trade margins
Trade Profits gaps post-contract are the difference between the margin expected when the trade was contracted and the margin actually realised through execution and settlement. The objective is to protect the contracted economics. Pre-contract issues are in the Risk tab
Why is the profit realised from a trade lower than the margin expected when the contract was signed?
Why is the profit realised from a trade lower than the margin expected when the contract was signed?
Delivery delays, demurrage, quality discrepancies, unforeseen charges and execution failures can erode contracted margins. Continuous risk monitoring and corrective action help contain losses, protect profitability and preserve expected cash flows.
Have tariffs, duties or unexpected landed costs changed the economics of your deal?
Have tariffs, duties or unexpected landed costs changed the economics of your deal?
A contract can remain executable yet become uneconomic when the total delivered cost changes after price agreement.
Are disconnected systems and handoffs slowing down otherwise viable trades?
Are disconnected systems and handoffs slowing down otherwise viable trades?
Manual processes, dispersed stakeholders and inconsistent documentation raise cost and delay contractual execution
More Gaps
Here are some more gaps in complement to the ones in the left tabs
Here are some more gaps in complement to the ones in the left tabs
Can your trades adapt to changing commercial conditions without delaying cash flows or eroding margins?
Can your trades adapt to changing commercial conditions without delaying cash flows or eroding margins?
Rigid contractual terms, financing arrangements and execution processes can make it difficult to accommodate changes in volumes, delivery schedules, counterparties or payment terms, resulting in additional costs, delayed receipts and lost revenue opportunities.
Could dependence on existing trade partners put your future cash flows at risk?
Could dependence on existing trade partners put your future cash flows at risk?
Disruptions affecting suppliers, customers or logistics providers can delay deliveries and payments, increase replacement costs and cause lost sales. Maintaining access to qualified alternative partners helps protect trade continuity and cash flows.
Can you substantiate your sustainability claims across the trade lifecycle?
Can you substantiate your sustainability claims across the trade lifecycle?
Missing evidence and inconsistent standards raise the risk of misleading claims and missed sustainable-finance opportunities.
See how TradinLoop accelerates your Cash-Flows
See how TradinLoop accelerates your Cash-Flows
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