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Mind the Gap
Nobody needs to be reminded of the oft touted financing shortfalls in the global economy. However, there are good reasons for why in a world of plentiful liquidity, there is insufficient capital being allocated to lubricate the wheels of trade.
Rapid globalisation brought an explosion in global trade in commodities – which occurred at such a pace as to prevent the ‘back office’ being brought with it. A lack of standardisation given regulations, shipping specification and quality certifications means that capital needs to be highly educated or experienced in commodity trade to ensure that transactions are structured efficiently and securely.
Trading Smarts meets Financing means
In a world characterised by disintermediation, financing solutions need to be technologically driven but supported by a decision making framework which is rooted in decades of industry experience. We believe our team, which blends industry experience over banking credentials, can structure sophisticated financing arrangements with turnaround times which are in sync with the demands of global trade.
Commodity trade financing are typically self-liquidating in that the financing is secured on the collateral being the underlying commodity in the transaction being financed. The tenor of transactions can be as short as 10 days to 180 days, and can encompass a range of facilities from individual transactions, to warehouse or repo financing and even pre-export financing of producers.
We believe our team, which blends industry experience over banking credentials, can structure sophisticated financing arrangements with turnaround times which are in sync with the demands of global trade.
ARIA Commodities
Powering Partnerships
Our team has hundreds of years’ of experience, including senior industry figures who have ran trading operations for decades. We believe that gives us an edge in providing financing solutions to well structured, highly collateralized and credit insured transactions. As credit and liquidity becomes increasingly difficult to access from the traditional banking channels, we have financed hundreds of millions of transactions, either originated by ourselves or alongside trading partners. Our platform can provide a number of benefits to trading partners:-
- Origination support from our regional offices;
- Logistics and freight fixing and management for a breadth of transaction;
- comprehensive structured credit insurance;
- Structuring advice in putting together well collateralized transactions.
ARIA COMMODITIES PLATFORM PROPOSITION
1. Environment Scan: Trade Development and Origination Support: We assist in both origination and developing market ideas. Producers rely on us as their procurement agents, and traders will often lean on our origination teams in the Black Sea, CIS, US and Latam.2. Ideation: Market Research Our research capabilities can provide insights into the technical feasibility of a given project or market development. Moreover, our extensive network at both destination and origination can provide vital market intelligence.
3. Contractual Execution: The stipulations of contracts are fundamental to trading success. Our legal and physical trading team can provide another resource in ensuring contracts have all the appropriate safeguards.
4. Transaction Structuring: From convention L/C and DP business through to alternatively collateralized propositions, we’re focussed on retaining title throughout any given transactions
5. Documentation Processing and Settlement: Processing industry documents with its terminology and conventions is a skill set itself. Outsource entire back and middle office requirements to the platform for a seamless and timely processing service.
Increasingly our view is that the supply chain is no longer the central aggregator of ‘business value’. That’s to say, it is not the resources that a given business has which drives value, rather the resources that it can connect to which derives the value. We seek to be that aggregation platform bringing together financing, back and middle office, origination and payment structures that allow commodity operators a non-traditional approach to gaining finance.
Our hybrid business model which blends highly experienced physical traders, risk management and structuring and fund management teams provides a multi-disciplinary approach to commodity trade financing.
ARIA Commodities