Users of commodities and trade services marketplace TradeHelp will have access to financiers though trade finance marketplace Fineon Exchange, after the two companies announced a partnership.
TradeHelp, headquartered in Los Angeles, facilitates commodities and trade deals from pre- to post-trade. Luxembourg-based Fineon provides funders and insurers access to trade finance assets.
The companies say the partnership will allow TradeHelp’s customers to “have their trade finance requirements validated and their trade finance assets’ creditworthiness enhanced”.
Fineon chief executive Dominic Broom says the partnership will create opportunities for TradeHelp’s clients “to optimise their working capital, minimise risks, reduce costs, turnaround time and grow their connections”.
“We look forward to supporting and linking more exporters, importers, brokers, service providers and financial institutions with our unique matchmaking service and shared marketspace,” he says.
Fineon has also launched a module on its platform designed for brokers, allowing them to upload transaction information and view possible compatible funders.
The company says it launched the product in response to growing demand from small and medium-sized corporates for alternative funding sources. Many banks, traditionally the dominant sources of financing, have curtailed their exposure to trade and commodities finance during the pandemic and in response to high-profile company failures.
“This has resulted in an increased demand from corporates… for broker services to help them secure funding from an expanding range of potential providers,” says Hussein Al Amine, Fineon’s head of business development and global strategic alliances.
Broom adds: “We are excited to be extending our trade finance matchmaking capabilities to cater specifically to the needs of brokers and look forward to building and multiplying our own marketplace transaction volume capacity in the process.”
The company says it conducted market research into the challenges brokers are facing and expects to publish the results in early 2022.