In an ever-changing macroeconomic, geopolitical and supply chain environment, leverage our market-leading global trade expertise to help you focus on what’s most important: your business.
2022 Greenwich Quality Leader and #1 Share Leader in US Large Corporate Trade Finance.
Welcome to the show. Trade finance isn't easy. In fact, these days it can be incredibly complex. So let me break it down into something a bit more digestible. This is wool. It's been traded for thousands and thousands of years. Archeologists have found wool and other textiles dating back to the earliest civilizations, like here in Mesopotamia. In fact, they've also unearthed some of the earliest examples of trade finance. Merchants issued the very first promissory notes on clay tablets like this one. This tablet is essentially a letter of credit, a promise of payment. The entire world is your neighboring region. And sure, we've had some amazing advances in technology to make that trading easier. We also have some things that make trade finance even more complex.
So let's look at wool in recent years. A use case single-handedly dominated our lives just a few years ago, the hoodie. In the pandemic, we didn't have casual Friday. We had casual every day. Demand went through the roof. So retailers try to quickly procure large amounts of inventory, impacting their cashflow. Then what happened? Supply chain issues. They couldn't get the inventory fast enough. After all, the hoodie isn't just wool. Lots of different suppliers, lots of different timelines. And that's where trade finance can get tricky. Oftentimes the manufacturer doesn't have the cash to pay the supplier upfront. They also have no idea when they'll get paid back because items may be backordered. The price of raw goods fluctuates week after week.
One tailor-made solution to this problem is supply chain finance. It gets the supplier paid early and gives the manufacturer more time to pay, closing the working capital gap for both parties. Of course, the kicker is once the retailers got all these hoodies in stock, people started returning to the office and demand changed from this wool to this wool.
Trade finance today is challenging and always moving and that's where JP Morgan thrives. We've been doing it for more than a hundred years. We have all kinds of innovative digital solutions to help improve your working capital and cashflow, so we can help you overcome whatever the world throws at you. How do we do it? Well, simple. We get to know your business, your objectives, and together we find a solution that's right for you. Because just like this, it's not one size fits all. Hey, do I get to take this home? Oh, cool. See you guys next week.
For thousands of years, global trade has fueled our greatest advancements by allowing those who specialize in anything to exchange that for everything. Shaping societies, building economies, driving progress towards the future from close to home to far from home yesterday, today, and tomorrow. Global trade shapes how we live, what we make, and how we do business.
At JPMorgan, we have been leading trade for over a century. And with our new market-leading investments and alliances, our future looks even brighter. As a leading bank in global trade, we are here to advise and help you navigate the digital revolution with predictive payment behavior, credit analytics, other big data and AI insights that facilitate automation.
Solve your evolving and complex trade challenges with unmatched industry experts who help clients build strategic and tailored solutions. Optimize your working capital needs to meet your risk mitigation and cash flow objectives. And contribute to a more sustainable and equitable world by removing the paper and developing innovative ESG finance programs.
And position your business to thrive in an era of service, technology, and industry transformation all backed by security you can trust. As we enter a new era of trade, we are here to simplify the challenges you face wherever you operate at every step of your journey because this is what we specialize in so you can specialize on your anything. Welcome to the future of trade. We are Trade and Working Capital at JPMorgan Payments.
Accelerate your path forward
Optimize working capital and enhance cash conversion by extending days payable outstanding, reducing days inventory outstanding and days sales outstanding, and driving strategic growth.
Improve operational efficiency
Enhance transparency, reduce disputes, streamline cross-border payments and expedite execution throughout the transaction life cycle.
Navigate the digital revolution
Realize automated, smart and customizable efficiencies through our digital offerings.
Establish ESG and DE&I priorities
Build a sustainable future and facilitate equitable access to financing using our vast trade capabilities.
Take advantage of our global network
Access certainty of price and funding through our fortress balance sheet and extensive funding and distribution networks.
Meet your working capital, cash flow and risk mitigation objectives.
Accelerate payments and optimize working capital with the Early Payment Program from J.P. Morgan and Taulia.
Take advantage of local and cross-border supply chain finance and dynamic discounting products and services through the strategic alliance between J.P. Morgan and KLYM.
Future proofing trade transactions
J.P. Morgan has formed a strategic alliance with Cleareye, a fintech that helps financial institutions streamline the onerous due diligence processing associated with documentary trade transactions. Cleareye.ai was named 2023 "Fintech Startup of the Year" by Global Trade Review and is poised to deliver industry-leading digital solutions to help future proof the challenges faced by trade finance operations today. In early 2023, J.P. Morgan continued its collaboration with Cleareye with the launch of their ClearTrade Compliance Module.
Gain access to our network of sources to help fund your trade transactions in more than 50 countries, while navigating the challenges of multiple currencies. Get transformative service delivery, streamlined processes and client support throughout the transaction life cycle.
Let us help streamline your trade transaction payment processing with an end-to-end financial institution offering. Take advantage of our status as a leading clearing bank to ensure you can grow and develop your trade business.
Help control risk
Let us help mitigate potential credit risk with other banks globally, without being part of the underlying trade transaction.
Increase your asset base and minimize your risk by using our distribution network and funding partners to distribute trade assets within the market. Count on certainty of price and funding by accessing broad and competitive funding, including secondary markets for trade asset distribution.
Learn more about how our Commercial Bank’s customized credit & financing solutions can help you grow your business here.
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