2024 was a pivotal year for 40Seas as it seeks to become the Salesforce of cross-border trade finance. Co-founder and CEO Eyal Moldovan said the sector is long overdue for disruption.
Moldovan said his clients are still adapting to a post-COVID-19 world, which has fostered a surge in digitization and the need for supplier diversification. Higher interest rates are also forcing companies to contend with tighter capital-raising environments.
Tariff troubles preceded Trump’s re-election. China and the USA have battled for years. Geopolitical issues in South Korea, the Middle East, Europe, and Yemen all affect commerce.
Environmental issues also play a role. Moldovan said lower water levels in the Panama Canal have impacted shipping through delays and changed routes.
“Going back to the shock wave of not having a single source of failure for suppliers, that’s a big trend,” Moldovan said. “And our customers are tuned to that much more than before because things can change overnight. You see, in Syria recently.”
Many of these factors highlight the importance of near-shoring. Moldovan said more companies are seeing the value in having goods stored close to customers and assembling them close to their final destination. Mexico is a big winner in this derby.
Another trend is the shift to small-batch manufacturing. In the past, companies placed large orders to take advantage of discounts. Some are seeing the benefits of quickly delivering smaller orders.
Companies are increasingly leveraging AI in marketing, listing, advertising, pricing, and customer support. Moldovan said supply chain financing utilizes AI to deliver better underwriting.
“The magic is how you leverage those things together,” he explained.
AI also allows the Davids to compete with the Goliaths. Available third-party tools compete with, and in some cases are better than, the systems large enterprises deploy.
Credit 40Seas for not jumping blindly into the AI deep end. He said it has its place in conjunction with other tools and processes.
“We’re not in the state where you can say to an AI, ‘Okay, this is what I want to do, and you figure it out,’” Moldovan noted. “We’re still far from that. I’m not saying it will not come, but it will not come in 2025.”
Over the past few decades, companies have emerged to help businesses with various issues. Google and Facebook simplify advertising. Alibaba does the same for sourcing, and Flexport does the same for logistics. Many look to Salesforce for CRM help.
That leaves accounts receivable, but not for long if Moldovan has his way.
“This is where our mission is. At 40Seas, we believe that we can capture that. This is the last frontier, and we’re happy to help companies digitize their AR, provide financing to them and their customer base, and digitalize the entire process.”