Trade Finance Market (TFM) has created a business platform through which investors can tap into an asset class worth $12 trillion every year.
TFM aids the trading process by buying exporter invoices on behalf of investors, which lets exporters receive their money faster when they ship their goods. Normally, in trade finance, exporters and importers settle their conflicting interests by merely ensuring exporters will receive payment for goods quickly while also extending credit to importers.
Whereas pricing on normal trading platforms is auction based, the TFM platform provides more transparency and is not auction based. The platform also provides the opportunity to earn even higher returns by funding shipments of physical goods, whilst also helping exporters sell their receivables quickly and easily.
“The retreat of banks due to market factors – Basel III, compliance costs and fines (Dodd Frank) – means that traditional players are currently unable to finance international trade, which causes unnecessary obstacles for exporters and slows growth. TFM is filling this gap in the marketplace by uniting trade, finance and technology in a way that has never been done before to maximise returns for investors, and provide competitive financing for exporters,” said London School of Economics alumnus and TFM Executive Director, R. Uttamchandani.
The platform is easy to use. The exporter simply uploads the documentation of the goods they plan to ship on TFM
platform and requests a finance rate. Investors then take a percentage of the trade, and can rest assured knowing that their yields will return quickly – no more than 120 days in TFM’s asset class.
“We do our due diligence to ensure that we live up to our mission to provide high standards of security while also delivering an alternative, efficient, and simpler avenue for trade finance,” added Uttamchandani.
TFM has been operating in beta and has built up a strong origination capability with a client list across Asia and Africa.