2023.08.02|商業經營

Waylon Yeh Secures Rare EMI License! Launches Taiwan-Europe Trade Finance in Lithuania – Why This Starting Point? 

Waylon Yeh, after a 25-year tenure at IBM, has identified new FinTech opportunities in Lithuania, aspiring to become an expert in bilateral trade between Taiwan and Central and Eastern Europe, bringing Taiwan's financial ethos to Europe.

"No matter if you want to buy key components or four containers of beer, our service builds a bridge of trust between buyers and sellers who don’t know each other, becoming the critical financial role for both parties." From a trade perspective, Fortress Factoring founder Waylon Yeh moved to Lithuania in 2020, positioning himself in the factoring business to make cross-border trade safer and more efficient.

Trade finance "factoring" involves financial institutions helping clients (sellers) secure buyer credit risk and providing collection and financing services. For example, when Company A prepares to sell goods to Company B, the financial institution guarantees that "Company B will pay Company A upon receiving the goods," ensuring that Company A's receivables are protected, preventing the dilemma of "goods shipped out, money not coming in." If Company A needs working capital, it can apply for a loan of about 80% from the financial institution, while Company B can "receive goods first, pay later," avoiding the risk of paying upfront and not receiving the goods.

Taiwanese buyers and sellers may not have bank accounts in Europe. Establishing branches or subsidiaries by financial institutions is "highly challenging and time-consuming." This means that for most Taiwanese businesses, cross-border trade is very difficult without financial resources.

Thus, establishing the fastest and most efficient trade method involves strengthening relationships with financial institutions. The receivables flow service becomes a critical aspect of trade finance for Taiwanese SMEs importing from or exporting to European companies.