International trade is on pause and the situation looks to be getting more complicated on a daily basis.
For many international businesses, and businesses looking to make their mark in new territories, it’s not going to be as simple as ‘life getting back to normal’ when the Covid ban on travel is lifted.
Goods held at depots worldwide that have perished have cost industries millions of pounds, and the same for non-perishables that are simply waiting to get to their purchaser but are held in a backlog not knowing if the company they are intended for will have survived the crisis.
These situations have meant that banks, lenders and insurance companies are all assessing risk in a brand new way. Money withheld from these core lenders is re-balanced only by companies refusing to pay their bills in a bid to protect their cashflow, adversely affecting others down the line. Contracts are being rescinded and this state of stillness has bred a desperate need for trade and money to flow again. Banks are working to guarantee payment risks across the board for private sector imports but financing trade flow across the globe is high risk in certain