Trade Finance Assets - The new alternative asset class

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Trade Finance Assets

Trade finance is the new asset class now accessible to investors.

Trade Finance Assets have been long-time monopolised by banks. While being underserved by traditional institutions for the past few decades, investors have been excluded from injecting liquidity in the trade finance market. However, thanks to the FinTech revolution, investors can now access this alternative asset class.

This new alternative investment product offers a higher yield than a similar asset class today. It shows low levels of correlation with traditional assets and the average life span of the investment is 55 days.

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Asset characteristics

Trade Finance Assets are a very stable source of yield even during periods of economic turmoil and market volatility. In such situations, even if Central Banks were to cut rates, yields in the Trade Finance space will remain high as the demand for liquidity remains high.

Trade finance assets are short-dated and continuously repriced to reflect the debtors’ default risk.

Many market operators are already using trade finance instrument to build a diversified portfolio. These intrinsic characteristics make this alternative asset a valuable resource in a well-diversified portfolio.

Low Market Correlation

Trade finance assets show low levels of correlation with traditional assets like equities bonds, commodity, real estate

Attractive market returns

The yield on trade finance assets ranges between 6% and 9% p.a

Short term maturity

The average maturity of Trade Finance is 55 days

Diversified portfolio

Trade finance assets could replace money market instruments in a balanced portfolio

Why Invest in Trade Finance Assets?

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Wealthy individuals, hedge funds, and assets managers can purchase short-dated assets with a very attractive risk-return profile which are uncorrelated with other asset classes

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By purchasing trade finance assets, investors collect the yield while helping corporates to access working capital

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The FinTech revolution offers investors access to Trade Finance

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We do not ask for long term capital commitment: your capital, your decision

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Invest your excess liquidity with Velotrade

First and foremost, Velotrade is the only Trade Finance Platform licensed by the Securities and Futures Commissions of Hong Kong.

We set up risk assessment protocols to truly represent each transaction’s underlying risk. We analyse quantitative and qualitative variables when assessing risk. By doing so, we can provide investors with a wealth of information to guide them in executing their investment strategies.

On the Velotrade platform, we gather a large pool of investors, each with its risk appetite. Hence, Velotrade can provide SMEs with diversified sources of funding.

Velotrade Licenses

Hong Kong’s Securities and Futures Commissions Type 1 License (#BJL007) and Money Lender’s Licence (1943/2019)

Fast On-boarding, No Paper, It's All Digital!

Our on-boarding is smooth and fully digital. We analyse the applications individually

Proprietary Platform

All the transactions are on our Digital Platform: simple to use with great UX and UI, including a high level of end-to-end automation

Risk assessment and mitigation

We use internal models and third party data to assess each transaction on our platform

Would you like to discuss more about the characteristics of the asset?

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SFC Regulated, ensuring peace of mind

Funds are held in a segregated client account with an authorised institution

Multi-currency platform ideal for hedging purposes

Additional Risk Mitigation: each Invoice is screened before being placed on the platform

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