Investor FAQ 

 
 
Am I eligible to be an investor at Velotrade? 
The products offered in the Velotrade website are only available to Professional Investors, as defined in the Securities and Futures Ordinance, Chapter 571. Link here
Upon signing up you are required to confirm you are a Professional Investor 

 
How do you source for invoices? 
Velotrade has a network of eligible businesses who are thoroughly vetted prior to being able to use our services.  

 
Where are my funds kept? 
Your funds are kept in an escrow account maintained with a licensed global trust company, secluded from Velotrade funds. 

 
When can I withdraw my funds? 
Funds that are non-deployed can be withdrawn anytime. Funds that are deployed become available once the transaction is settled 

 
Is there a minimum investment? 
The minimum initial investment is USD 100,000 (or equivalent). However each auction is split into smaller tranches allowing Investors to diversify exposure. 

 
What is Velotrade role? 
Velotrade provides the technical infrastructure, handles the origination and carries out extensive due diligence and robust anti-fraud procedures. We also look after the settlements pre and post auctions. 

 
What is the range of yield I can expect? 
The yield assigned by Velotrade on an auction depends among other things on the creditworthiness of the Seller, the quality of its customer (i.e. The Debtor) and their existing business relationship.
The bulk range of auctions is estimated to yield 5% to 10% with a small number of auctions yielding above 10% 

 
Why are receivables a clever transaction? 
Trade receivables can enhance returns on short to mid-term portfolios. They generally have low correlation to traditional asset classes such as equities, real estate and fixed income. Portfolios consisting of receivables are also well diversified across a number of debtors in different countries and sectors. The average tenor of each receivable is typically 60-90 days. 

 
Do I earn interest on non-deployed funds? 
Funds that are idle in the escrow account will still yield interest comparable to a bank's overnight deposit.

 
How does a typical transaction look like? 
For ease of referencing we have outlined the diagram below assuming there is only one Investor that deposits money into the escrow to buy a single invoice only.
Note that Investors are allowed to buy invoices up to their available balance held in the escrow account. The diagram below is just a fictional example and it may not represent the actual workflow.

FAQ-investors


  1. Seller transfers the legal title of the invoice (i.e. The receivable) to Velotrade
  2. Velotrade transfers full title to the Investor
  3. Investor transfers the money to the escrow account
  4. Advance money minus Velotrade fees is paid to the Seller
  5. At pre-agreed payment date, the Debtor (i.e. The Seller’s customers) settles the full value of the invoice
  6. Advanced money plus interest is repaid back to the Investor
  7. The Seller receives the balance minus interest
 

 
Do I need to understand about trade finance to buy invoices on the platform? 
In the Velotrade platform you would be provided with robust information to make an educated analysis. Companies data and key business analytics are extracted from the database of a world leading information provider with daily updates. 

 
How is risk evaluated? 
Velotrade managers and associates have extensive knowledge and expertise having worked in financial institutions covering senior roles in trade finance operations. Velotrade also benefits from the expertise of the insurance company providing independent review of risk profiles to better assess credit worthiness of its customers. 

 
How do I purchase an invoice? 
The Velotrade auction mechanism allows you to manually select the invoice (in the auction) to buy. Alternatively, you can use our automated algorithm that will buy portions of the available auctions according to the parameters that you pre-set (such as target yield, size limits, countries and others). 

 
What happens if an invoice doesn’t get paid? 
In the event the Debtor refuses or is unable to pay, Velotrade would implement recovery from the Seller. Should the recovery from the seller be unsuccessful then Velotrade would hand over the claim to the insurance company. 

 
Why insurance? 
Velotrade stipulated a policy with a world’s leading insurance company. Credit Insurance is an effective financial risk management tool that safeguards Investors against losses arising from debtors’ non-payment.
Key features:
  • Effective control of bad debts
  • Access to credit expertise, market knowledge, debtor assessment and information from an international credit insurance company
  • Global debt collection services for faster and more efficient recovery timings
 

 
What currencies does Velotrade accept? 
Velotrade has multi-currency trading capabilities, especially with major currencies. 

 
 

Need more info? Contact us

Financing tomorrow 

_
Velotrade Management Limited
Room 24, Units 405‑414,
Level 4, Core E, Cyberport 3
100 Cyberport Road
Hong Kong 

_
T + 886 (801) 491356
E contacts@velotrade.com

linkedin facebook

_
© Copyright Velotrade 
Terms of use 
Privacy policy 

_
Regulated by the Securities and Futures Commission of Hong Kong
(CE Ref #BJL007)

_

_
This website
is carbon neutral
 
co2neutral

velotrade_icons-40
velotrade_icons-40
 

Please note that the products and any associated services mentioned on the Investor pages of the Velotrade website are only available to professional investors including regulated financial intermediaries such as banks and securities brokers, regulated insurance companies, government or public authorities, corporate treasurers and financial advisers, as defined in the Securities and Futures Ordinance, Hong Kong (“SFO”), Chapter 571.
Professional investors include: 

  • A trust corporation having been entrusted under the trust or trusts of which it acts as a trustee with total assets of not less than HK$40,000,000; 
  • any individual, either alone or with any of his associates on joint account, having an investment portfolio of not less than HK$8,000,000; 
  • any corporation or partnership having a portfolio or not less than HK$8,000,000 or total assets of not less than HK$40,000,000; and 
  • any corporation whose sole business is to hold investments and which is wholly owned by an individual who, either alone or with any of his associates on a joint account, has an investment portfolio of not less than HK$8,000,000. 
  • Click here to download the relevant rule from the Department of Justice

    For the avoidance of doubt, such products and services are not available to retail investors.

    Please also note that the information contained within the Investor pages on this website is not intended to constitute an offer or solicitation in any jurisdiction. The onus is on all prospective investors to inform themselves of any applicable legal requirements, exchange control regulations and taxes in the countries of their citizenship, residence or domicile.
    Before acting on any information in this website, you should consider whether any investment, security or strategy is suitable for your particular circumstances and, if necessary, seek independent professional advice.
      


Please click the "I ACCEPT" button below if you have read and understood this page and confirm that you are a Professional Investor and agree to abide by its contents, otherwise click "I DECLINE" to go back to the website.

 

I Accept I Decline