The trade finance landscape is currently undergoing a new wave of technological change, gradually transforming the industry. Trading, which is considered the lifeblood of the global economy, is facing new opportunities largely through digitization. The digital leap in the last few years has moved businesses and consumers from offline to online, which has led to effective business growth. The digitization of trade finance allows corporates to achieve better control of credit facilities, enabling an increase in transaction volume.
BBX is a B2B financial solutions provider that helps businesses manage cash flow using digital trade credit as settlements for trade transactions. The company has a strong focus on delivering hassle-free customer experience for clients and is committed to build a community of business owners thereby driving sustainable economic growth. Caroline Macdonald, CEO of BBX Holdings was with the CEOViews team to share details about how they add value to their clients.
Inception and Mission
Established in 1993, BBX Holdings was founded with the purpose of providing B2B financial solutions that focus on the experience, while helping businesses grow by using goods and services as settlements for financial transactions.
BBX manages its proprietary BBX Trading Platform and Digital Trade Credits (DTC) supply, which enables members with non-cash alternatives to conduct trading multi-laterally and globally.
The BBX Trading Platform grants members a non-interest-bearing DTC credit line, and the DTC ecosystem provide procurement options that can help businesses grow their top and bottom lines while preserving their cash. This can solve business financing concerns overnight.
BBX is committed to building a world of economic opportunity for business owners by dismantling the barriers to economic growth.
Its vision is to become the world’s largest and most trusted business network actively helping businesses grow in ways they never imagined.
Milestones along the journey
BBX has been in the business for 30 years and has expanded its operations all around the globe. It now currently operates in Singapore, Malaysia, India, Thailand, United Kingdom, Australia, New Zealand, and Costa Rica, where it has provided businesses via its DTC interest free credit program upwards of 8.2 billion in DTC capital support.
Recently, the company has replaced its technology stack to take advantage of the shift in global financial markets and to address the gap in banking support for businesses, specifically SMEs. BBX is poised to expand and expects rapid uptake of its program as the world moves further towards circular economies and sustainable programs.
Key business activities and products/services
Settlement and payment in DTC are instantaneous and thus removes bad debts in accounts. As the BBX DTC is a closed transaction within its own business network, it fundamentally encourages a circular economy amongst its business users, locally and globally. As it stands, 131 million MSMEs in developing countries have unmet financing needs valued at an estimated $4.5 trillion. A strategy, such as BBX, aimed at optimizing resources across all business sectors that promotes sustainability is highly desirable. By unlocking invoice settlement on day one, BBX has been encouraging businesses, giving them the opportunity for further growth and increasing their international appeal.
Businesses that use BBX’s platform can take advantage of a circular economy’s competitive advantages by collaborating with their ecosystem partners to create, capture, and deliver sustainable and joint value.
Compared to the traditional business-centric linear model, a digital ecosystem-centric business model focuses on up-front product sales. Thus, by extending the lifespan of businesses effectively to improve resource efficiency, resilience, and customer intimacy, new income sources can be created.
BBX connects multiple industry stakeholders across different sectors to initiate circular innovations. In this way, convenient and rapid sharing of insights and ideas can unlock new potential business models and innovation through networking activities.
Sustaining challenges along the way
With the onset of each journey, there is a new change that brings forth new challenges. For BBX, expanding the BBX program has been a challenge, mostly due to:
- Lack of acceptance digitization by business owners
- Rigid territory compliance and lack of clarity by financial regulators about Digital trade Credits
- Shortcomings in BBX’s own technology stack
- Linear business model approach rather than circular
Through perseverance and interpretation of all odds as a positive change, BBX has worked to overcome these challenges with market timing, movement and digitization (post covid). Over the years, the BBX board has taken the business on what is called an “organic” journey, allowing the business to grow via business networks and referrals.
Speaking about market opportunities, Caroline Macdonald said, “Whilst the growth has been stable, a decision was made during covid to replace the full technology stack and prepare the business for full impact go-to market strategy. This decision was based on the worlds shift to circular economies and the digitization of businesses as a bi-product of covid. The board deemed that the time was right, the business was primed to evolve to new markets and embark on a rapid expansion plan.”
In the future, BBX intends to expand operations by collaborating with established enterprise programs in growth corridor territories. It has a strong focus on the ASEAN region and is solidifying agreements in some of the new countries at present.
Recently the business has replaced its technology stack to take advantage of the shift in global finance markets identifying the gap of banking support for businesses, specifically SME
BBX group is leading the way in assisting businesses to grow by providing online opportunities. It acts as an independent third-party digital trade ledger keeper with a focus on providing a seamless member experience on its platform.