Air’s Data-driven, Insights-Based Supply Chain Finance platform bridges the financing gap SMEs face
Alvin Ho, President of Air8 was invited for an interview at CXOToday.comm about Air8’s data-driven, insights-driven supply chain finance platform.
How does Air8 plan to extend its financing solution beyond local borders to address the global challenge of SME financing in emerging economies?
SMEs face challenges such as lack of affordable financing, insufficient know-how on working capital management, and lengthy bank loan processes. Air8, established in late 2021, addresses the working capital gap for SME exporters globally, especially in Asia. We provide quick, convenient, and affordable financing through banks and non-bank financial institutions. SME exporters in emerging markets struggle with stable financing due to insufficient data for credit underwriting. Air8 leverages data-driven insights and AI to assess creditworthiness efficiently, using diverse data sources to create comprehensive supplier profiles and evaluate credit risk. This approach reduces waiting times, enhances client experience, and allows SMEs to seize market opportunities. We also use alternative non-financial data to broaden asset financing without additional risk, giving funding partners a holistic risk view.
What specific features does Air8 offer to cater to the diverse needs of SME suppliers across different industries?
Air8 leverages technology and industry-specific insights to make financing more accessible for SMEs, promoting supply chain visibility to enhance decision-making. By providing early access to funds, Air8 mitigates risks for SME exporters while educating them on risk management. Our innovative approach is data-driven, insights-driven, and customer-centric, ensuring SMEs receive the support they need to thrive in emerging markets.
In what ways does Air8 innovate in its approach to providing flexible and accessible financing solutions for SME suppliers?
Air8 leverages technology and industry-specific insights to make financing more accessible for SMEs, promoting supply chain visibility to enhance decision-making. By providing early access to funds, Air8 mitigates risks for SME exporters while educating them on risk management. Our innovative approach is data-driven, insights-driven, and customer-centric, ensuring SMEs receive the support they need to thrive in emerging markets.
What risk mitigation strategies does Air8 employ to address the inherent risks of financing SMEs in emerging economies?
Financial institutions typically rely on traditional credit underwriting methods, heavily emphasizing financial data. However, they encounter various challenges in acquiring sufficient data from SMEs to make informed credit decisions and they are in lack of industry insights necessary to comprehend the unique risks associated with SMEs’ operating sectors. Technology-based, data-driven supply chain finance platforms such as Air8 offer solutions to these challenges. By leveraging both alternative data and financial information, Air8 is better equipped to assess underlying risks, enabling financial institutions to finance these assets with greater confidence. Air8 also streamlines the Know Your Customer (KYC) and onboarding processes for SME suppliers, thereby reducing financial institutions’ costs associated with serving SMEs in the emerging economies.
What metrics does Air8 use to measure its impact beyond financial returns, and how does it ensure the sustainability and scalability of its efforts while contributing to the broader socio-economic development of the regions it operates in?
Air8 has an unwavering commitment to sustainability and ESG principles within the apparel supply chain. At our core, we recognize the critical role we play in fostering positive environmental and social impacts throughout our operations. Our journey towards sustainability begins with a robust Supplier Code of Conduct policy, which sets clear expectations for ethical behaviour, environmental stewardship, and human rights standards across our supply chain. By holding ourselves and our suppliers accountable to these standards, we ensure that every aspect of our operations upholds the values of transparency, fairness, and responsibility.
Furthermore, our company’s Sustainability Statement and Commitment serve as guiding principles that drive our decision-making processes and strategic initiatives. We understand that sustainability is not just a buzzword, but a fundamental imperative for long-term success. As such, we are dedicated to continuously improving our environmental performance, promoting social equity, and enhancing governance practices throughout our organization.
In alignment with various funders’ ESG-related requirements, we have developed a comprehensive two-year plan to further enhance our sustainability efforts. This plan encompasses a range of initiatives, including but not limited to, implementing a more sophisticated governance on ESG, embedding climate risk into our risk assessment, promoting labor rights, and fostering diversity and inclusion within our supply chain. Ultimately, our aim is to catalyze positive change within the apparel industry by integrating sustainability and ESG principles into every facet of our operations. We firmly believe that by working collaboratively with our partners, suppliers, and stakeholders, we can create a more resilient, equitable, and sustainable future for all.
The full and original story is on CXOToday.com
Talk to Air8 for supply chain finance and insights: https://air8.io/contact
