- September 6, 2020
- Posted by: avantconsulting
- Category: Commodity
Smaller Traders to suffer from Commodity Trade Finance Pull Back – The recent few years have seen the commodity trade financing market slow down and with the recent pandemic causing a global slowdown in business, we are likely to see the market get hit even worse.
Hin Leong Trading based in Singapore has been recently embrioled in fraud and its owners are going to court.
Many banks that have been in the commodity space are highly exposed to the past few huge cases and are likely if not they have already exited the commodity structured trade financing space.
According to the recent Wall Street Journal Article Titled: “Banks’ Retreat From Commodities Is Set to Derail Small Traders”
It was noted that: “The biggest impact will be on smaller players,” said Jarek Kozlowski, chief financial officer at power-and-gas trader TrailStone Group. “They will have difficulty finding funding.”
This is something that we will have to agree with the writer.
In Singapore we have seen the move back from the banks such as Societe Generale. The commodity trade financing market around the world and also in Singapore where it is an important part of the countries trading and GDP, it is going to have to work something out to keep the financing for the small players.
Avant Consulting is a leading Singapore SME loan financing company that has a strong team of brokers and strong relationship with the banks to assist our clients to gain acess to funding to either weather themselves through this tough period of time or to grow their businesses.
The Singapore Structured Commodity Trade Financing market is currently in a stage where it is really tough for small players to gain access to commodity trade financing.
We have recently teamed up with a Ex Commodity Trade Banker who has 10+ years of experience in Commodity Trade Financing and have very successful assisted a few medium size firms to gain access to financing to help grow their trades.
We will be keen to speak to you and your management if you require any of such help