A new business platform providing international trade finance is aiming to fill the gap left by traditional providers exiting the market.
Trade Finance Market (TFM) also aims to provide investors with the opportunity to tap into trade finance as an asset class and earn high returns by funding shipments of physical goods.
Using the TFM platform, exporters upload documentation related to the goods they plan to ship and request a finance rate.
Investors then take a percentage of the trade, and according to TFM would normally anticipate a quick return within 120 days of their investment.
TFM says a key difference between its offering and similar platforms is that pricing is not auction based, which the developers say provides transparency for all parties.
According to the platform’s founder, R Uttamchandani, the platform was born out of his own frustrations when importing and exporting goods.
Filling a gap
“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,” he says.
“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,” Uttamcandani claims.
The Trade Finance Market web site can be found here.
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