Outside the securities market several solutions exist for companies involved in trade and distribution that need operating capital. A short-term bank loan (or a revolving credit facility) is one such product. Its availability depends on the bank’s view of the borrower’s credit quality. Another product is Factoring, offered by banks and specialized companies. Both products are likely to be offered only by financial institutions based in the trader’s home country.

Our products, based on the instruments of the securities market, are global in nature and complement the above product line. We will securitize the obligations of the trading company seeking operating capital, in a tailored way – to match the commercial terms agreed with the provider of financing. The financing provider will provide money against a marketable financial instrument which embodies the debt obligation of the borrower, secured by receivables or another means. The instrument is a bond-like note, issued through an SPV and secured through a mechanism specifically designed.

These instruments enable financiers (including providers of private finance) and traders in need of operating capital get together. Very similar to factoring, this solution offers higher flexibility of terms.