- July 22, 2020
- Posted by: avantconsulting
Singapore Commodities Structured Trade Line Financing – Commodities trading is a big part of the Singapore financial markets. Singapore being located in a core location for international trade between China and the rest of the world makes it a great location to perform trading roles.
Singapore is also the central location before one can move around South East Asia making it a great location of setting up a trade business.
Setting up & Incorporating a Singapore company is also very easy for anyone who wishes to start trading here.
With such a good location and strong financial standing, Singapore is naturally the key location for many Commodities trading companies to be based in.
Commodities trading usually covers the buying and selling of instruments such as gas, oil, metals such as silver and gold and other soft commodities such as Cocoa, Coffee, Wheat and Sugar.
In fact, commodities trading is much older than the financial markets that we know. Where it started in Europe in 1500s.
Singapore employs a large number of people in its trading market and is one of the leading countries in terms of Commodity Trade Financing.
The Commodity Trade in Singapore accounts for close to 4.5% of the country’s Gross Domestic Product (GDP) making it one of the key pillars of the nations economy.
Commodity Financing is a form of lending option that is a part of trade financing. The financing is done across three main parts, metals, energy and soft commodities.
Producers use these structures to receive capital to get optimal output with cash flow from financiers and banks. Repayments are made when exports are completed.
With more Trade Line options available, traders are able to open up to new markets and also new forms of commodities.
The trades where the products are held by the trader are used as collateral in case trades break down or the structure breaks down. This is to mitigate risk for financiers.
Due to the the recent high profile cases of fraud and lost of appetite in financing traders, many big players have left the Singapore markets.
This has caused squeeze in the Singapore financing sector. Many companies that used to have a good access to the financing and lines for commodity trade are facing tough times and difficulties financing their needs.
With so many bad news coming up from the industry such as:
- Banks in Singapore to tighten commodity financing practices after collapse of oil trader Hin Leong
- StanChart’s global head of commodities business to leave as team restructured
- ABN Amro to exit trade and commodity finance after losses
- Hit by 40% revenue slump, commodity trade finance faces bank retreat, reshaping
To be able to get access to trade financing may allow you to increase your trading volumes, get better rates and also compete with bigger boys in the market.
At Avant Consulting, we are able to provide the exact consultancy need for you to achieve that financing need for your business. As Trade Facilities Brokers, we are able to open doors for you to get access to Singapore Trade Facilities.
Our consultants have many years of experience in the Structured Trade Financing sector. We will look through the financials of your bank, work with you on getting things more efficient and also advice on which banks or financial institution to get Trade Financing from.
Further more, we will help you to source through our network of Structure Trade Financing bankers to get the required Trade Lines you may need to grow your business.
Most common forms of commodity trading includes but not limited to:
If you are a commodity trading company based in Singapore, you may be interested to work on increasing your volume of trade through financing from financial institutions and banks. This allows your business to grow much faster than it would ordinarily be able to.
Commodities Trade Line Financing is a specialized topic that requires specialized skills to consult and improve your chances of approval. You will also need to make strategic changes to improve your business strength.
Avant Consulting works closely with a Commodities banker with close to a decade of Commodities financing background and is able to assist you in acquiring the financing that you need to spread your wings in the Commodities trading market.
Our unique Singapore Trade Financing consultancy services includes assisting in your restructuring and assistance in connecting you with potential trade financing partners.
With the financial markets now in a position of being very risk adverse, you will need the additional help to get those Commodity Trade Financing in Singapore for you to make that big trade that may be coming your way.
If you require consultancy and help in your trade line application for the Commodities market, you can speak to Tommy, +65 98638665 to schedule a meeting. We will liaise and prepare you for the meeting with our Commodities Trade Line Financing consultant to begin your journey to making more profits with more financing.
An Understanding of Structure Trade Financing in Singapore
Singapore Structured Trade Financing as compared to traditional trade financing are usually longer dated. The STF requirements are also usually more complicated and will require the financing houses or banks to get a better understanding of the assets involved. And since there are a much further relationship in terms of the trading and the financiers, usually banks will prefer to take on the financing with a group or consortium of financiers to reduce risk. Singapore is a strong banking hub for structured trade financing.
Avant Consulting is the leading SME Loan Broker in Singapore which has assisted Small and Medium Enterprises to get access to SME Loans in Singapore to help them through this tough period of Covid-19 downturn.