Invest in Trade Finance and Diversify Your Portfolio
Institutional investors can now gain unprecedented access to the trade finance asset class with Triterras’ trade funding opportunities.
global trade funding OPPORTUNITIES
Trade constitutes the backbone of every economy.
80 ~ 90% of global trade requires financing
An annual USD 18 trillion of global trades are mostly financed by banks today.
90% of SMEs lack access to affordable trade finance
A widening trade finance funding gap of USD 1.7 trillion, created by stringent banking regulations such as Basel III, along with pressures of rising costs.
USD 10 ~ 15 billion of AUM
Collectively, trade finance specialist funds have just USD 10 to 15 billion AUM in this asset class.
There is thus, a compelling opportunity for flexible institutional capital to step into the lending gap.
trade finance
An attractive asset class opportunity
High Yields
Trade Finance yields exceed comparable private and public credits with similar risk.
Short Maturity
Maturity is generally less than one year, but funding structures can be created to accommodate longer-dated capital.
Low Default Rates
Default and loss rates are historically low, in comparison to senior secured corporate debts and similar credits.
Strong Structural Protections
Trade Finance is often secured by corporate accounts receivables, accounts payables, and/or inventory.
Limited Correlation
Trade Finance renders reliable, steady cash flows, and has limited correlation to other asset classes.
HOW INSTITUTIONAL INVESTORS access TRADE FINANCE TODAY
Traditional Access Points
- Banks
Yields may be below return requirements
- Brokers
Unlikely to get structuring expertise, limited data availability, and inefficient processes
- Funds
Lack of control and additional layer of fees
“Build-Your-Own” Requires
- A global network of corporate borrowers
- Expertise and relationships
- Access to standardized data
- Specialized infrastructure
Partner with Triterras to invest in Trade Finance, a self-liquidating, uncorrelated asset class.
HOW DOES IT WORK
Investing in Global Trade Finance Through Triterras
Risk-mitigated & Efficient Access to Trade Finance
| Risk/Inefficiency | Our Team helps by | Our KRATOS technology helps by |
|---|---|---|
| Credit | Screening credit universe | Facilitating access to credit insurance |
| Country | Avoiding high-risk countries | |
| FX | Avoiding non-USD transactions | |
| Transaction | Selecting buyers and sellers with observable trading history | |
| Documentary | Digitizing and storing trade documents and other information (contracts, invoices, bills of lading, etc) on an immutable blockchain that ensures data transparency and validity | |
| Legal/Regulatory | Conducting KYC/AML of buyers and sellers |
Working with Triterras, loans can be made to individual credits or on a portfolio basis, matching your specific investment criteria and objectives.
Our pipeline is focused on companies engaged in global trade of manufactured goods and commodities.
Triterras’ experienced team of expert Originators, along with our Kratos technology platform are open for lender’s utilization.
Triterras prepares a tear-sheet for each credit and can provide structuring assistance if desired.
Triterras can also handle the servicing of loans, as well as to provide post-close monitoring through the blockchain-enabled Kratos platform.
Investment decisions rest with the lender.
the kratos advantage:
what does it offer lenders?
Using the Kratos trade finance platform, lenders can now cost-effectively access a global market for which they have traditionally been locked out.
Validations
Lenders can utilize the AML and KYC checks, bills of lading, company credit reports, and other key documents to minimize operational risks.
Portfolio Diversification
Lenders can have instant access to other commodities and new borrowers for a greater range of investments that fit the lenders’ risk appetite.
Analytics & Reporting
The Kratos platform supports strategic decisions with customizable data visualization via a modular dashboard that focuses on financing metrics.
Expand your investment portfolio with high-yield deals powered by Triterras and script your success story in Trade Financing.
TRADE FUNDING
transaction focus
Trade finance constitutes a wide range of various lending structures that underpin the different aspects of cross-border global trade, including trade production, logistics and transportation, payments, and more.
Receivables Discounting
Sale of receivables to a finance provider at a discount, typically with recourse back to the seller.
Factoring
Sale of receivables to a finance provider at a discount, with or without recourse back to the seller.
Payables Transactions
Buyer-led transaction whereby sellers in the buyer's supply chain can access early payment.
