- August 25, 2020
- Posted by: avantconsulting
- Categories: Commodity, Singapore Economy
Getting more Commodity Trading Financing for your business – 2019 and 2020 has been a bad year for the Singapore Commodity Trading market. Commodity Trading in Singapore forms close to 4.5% of the Gross Domestic Product (GDP) and is one of the core anchors of the strong economy in Singapore.
Singapore is the hub for quite a sum of trading activity around the world. Being well positioned between China and the rest of the world, goods come through the Ports of Singapore and get redistributed around the world.
Commodity such as those of Agriculture, Metals and Fuels, are mostly traded through trading companies in Singapore.
2019 and 2020 is definitely not without scandal. With the the recent collapse of Hin Leong Trading and the Founder charged: https://www.ft.com/content/f0d5a4b7-054d-4e0e-91c9-1353786da315
Together with the fall of the oil trading giant, Societe Generale has also decided to pull out of Singapore with the bank suffering $330 million in losses due to their Hin Leong exposures: https://www.straitstimes.com/business/banking/socgen-shuts-spore-trade-commodity-unit-after-hin-leong-hit
As a Singapore based commodity trading firm, most will be struggling to survive and thrive in this environment. The Covid-19 pandemic has slowed down global trade and with this lower revenue figures. Traders run on razor thin margins and with the lower revenue means lower profits for their businesses.
Business that wish to do more through acquire Singapore Commodity Trade Financing or Commodity Trade Lines are also experiencing much difficulties as major banks that have been traditionally financing such businesses are pulling out of the game to reduce exposure to this markets.
Even though the big players are out of the game, the fact is that there are many boutique banks that are able to assist and finance such deals if the company has a strong background and portfolio.
Avant Consulting is currently working with various financiers and bankers in Singapore Structured Trade Financing to assist our clients in the Singapore Commodity Trading industry to do better and also to gain access to more finances for their exemplary trades.
Do not miss out on this once in a lifetime opportunity to “Getting more Commodity Trading Financing for your business”.
Our consultants are ready to set up the meetings with the relevant financing firms and also to work with you on improving your work flow to ensure you get even more trade lines in the coming months or years.
Our consultancy is never an once off service. We work closely with our clients as friends and support you through the journey of building up to a better tomorrow.