Avoiding credit-risk related collapses : TradeFlow reduces risk in SME trade finance using innovative FinTech, non-lending, non-credit system
Press Release – 15th March 2021
Leading Singapore FinTech Trade Innovators Join Forces to provide Enhanced Digital Trade Solutions to SME Firms.
Press Release – 9th March 2021
TradeFlow Capital Management Leads Global Trade Financing Industry with Launch of Climate Impact Strategy
Innovative FinTech and Funding solutions allow firm to support projects that offset millions
of tons of carbon dioxide whilst enabling global trade
PRESS RELEASE – 7th December 2020
SINGAPORE, Dec. 7, 2020 — TradeFlow Capital Management (TradeFlow), the innovative FinTech powered fund manager headquartered in Singapore, has launched its Climate Impact Strategy unique within the Commodity Trade Financing Industry that has the potential of offsetting millions of tons of CO2 carbon emissions whilst fulfilling its business mission of supporting SMEs globally by enabling their physical commodity import/export transactions
As part of its wider Climate Impact Strategy, TradeFlow offsets the Carbon emissions generated by the transportation of the International Commodity transactions it enables; these carbon offset targets are achieved through partners such as Carbonfund.org Foundation and AirCarbon Exchange.
“We are grateful for the support of TradeFlow for our work in combating climate change through supporting our carbon offset projects. Crucially, this allows our foundation to protect local forest communities, preserving not just biological but also cultural diversity. We are at a crucial moment for the protection of the Amazonian Basin, an area which is at great risk from large-scale deforestation that will worsen climate impact,” explains Eric Carlson, President of Carbonfund.org Foundation.
“AirCarbon’s securitization of carbon into tradable securities allows TradeFlow to seamlessly attach carbon offsets to commodities in their supply chain. Offsetting the carbon footprint of commodities with ACX instruments, enables TradeFlow to demonstrate absolute transparency to market participants. More importantly, carbon becomes a tradable instrument attached to traditional contracts like LNG. Liquidity and low fees within a traditional exchange framework means TradeFlow can look at carbon holistically as a leverageable asset on their balance sheet,” says William Pazos, Co-Founder and COO of AirCarbon Exchange.
Says Tom James, CEO of TradeFlow: “We strongly believe in using FinTech-based market mechanisms to combat climate change, and are privileged that our unique trade funding model and tech platform allows us to do so. We hope our initiatives encourage more firms to innovate in ways that allow sustainable investment returns, whilst being able to support the United Nations’ Sustainable Development Goals.”
“Mitigating climate change can improve the lives and livelihoods of millions as well as support the long-term development of the Global Commodities industry. TradeFlow believes that working with strategic partners is the best way for us to contribute towards a more sustainable future for our industry and for humanity, and to reverse the harmful effects of climate change,” emphasises John Collis, CLO of TradeFlow.
TradeFlow Capital Launches in the Americas
PRESS RELEASE – 8th June 2020
TradeFlow Capital Management (“TradeFlow”), is excited to announce its expanded presence in the Western-Atlantic Hemisphere.
The initiative, the latest in a string of developments that TradeFlow has announced over the past six months, positions the firm to take advantage of opportunities it sees in the North / Central American and South American bulk commodity markets.
TradeFlow is a global commodities trade finance hedge fund manager who operates the USD TRADE FLOW FUND and EURO TRADE FLOW FUND investment strategy which enables Physical Bulk Commodity import/export transactions using a proprietary non-lending / non-credit strategy.
“The decision to expand our presence in the Americas was a logical next step in our business growth strategy,” said Tom James, CIO / CEO and Co-Founder of TradeFlow. “North America in general, and South America in particular, are integral to global commodity markets, and we continue to demonstrate our commitment to the region through ongoing investment and trade support expansion.”
According to John Collis, TradeFlow Co-Founder and CLO, “North America continues to be the world’s largest energy supply region and leader in terms of the world’s commodity market trade. By adding an experienced Americas based management team led by Todd Esse and Sam Kingston, we are confident we can better serve our global clients. This is a terrific complement to TradeFlow’s existing trade business in Asia, Africa and Europe.“
“Our non-credit approach to enabling physical commodity import/export transactions, which is unique in the trade finance hedge fund world, swaps pure credit risk faced by investors in other trade finance funds for real-world insurable physical risks. The addition of Todd and Sam ensure that we have the ability to serve clients globally” said James.
The Asia region is a decisive component in the global food chain, accounting for 19% of total global food and agriculture exports and 31% of total food and agriculture imports. Collis added “We believe Asia agribusiness and food & agriculture companies are likely to grow in size and scope to meet the increasing demand, national policies, rising organizational capabilities, and integration and consolidation throughout the value and supply chains.”
TradeFlow avoided the recent credit risk turmoil in the commodity markets thanks to its non-credit strategy,I.e.no lending to Commodity end buyers, sellers or traders. Instead, it acts as a neutral principal (middle-man) in small trade deals, taking ownership of the commodity and overseeing logistics and risks upto final delivery of the Commodity to the end Buyer. Even if one party fails, TradeFlow owns the goods and would has the ability to sell the Commodity to a new end Buyer in the open market.
“Having ownership of the commodity means we’re not relying on the balance sheet performance or the credit risk of the end buyer,” said James. “We’re relying on the quality of the transaction; the commodity. If it all goes wrong we can sell that commodity to someone else and get our money back.”
The TradeFlow strategy centers on client service, and the firm consistently adds value by leveraging its global reach to solve its clients’ critical needs. “Engaging clients and creating enduring relationships has and will always be a hallmark of TradeFlow’s business – a holdover from the management team’s history in the finance and commodity trading industry. In keeping with this history, TradeFlow is committed to its expansion in The Americas and is continuing to build long-term partnerships with its clients in the region,” said Todd Esse, a Principal of the TradeFlow America’s business.