The International Chamber of Commerce (ICC) and TradeFlow Capital Management plan to establish the ICC SME TradeFlow Fund to increase access to trade finance for small and medium-sized enterprises (SMEs) in the commodities sector.
With this new fund, we hope to increase the opportunities for small businesses to have access to trade financing.
In accordance with its century-old mission to make the business work for everyone, every day, everywhere, the International Chamber of Commerce has partnered with TradeFlow Capital Management to resolve a major barrier to the participation of SMEs in international commerce.
SMBs are the greatest economic contributors and employers in both developed and developing economies. The inability to access trade finance solutions, exemplified by the widening financing divide, has a significant impact on over 130 million SMEs globally. By joining forces, the International Chamber of Commerce (ICC) and TradeFlow Capital Management hope to unleash new financing opportunities for the global SME community and ensure that small businesses trading bulk commodities have access to international markets, allowing them to flourish and develop.
The ICC SME TradeFlow Fund will use a non-credit, non-lending model to support SME physical
Commodity import-export transactions, leveraging TradeFlow Capital Management’s proven investment methodology and proprietary digital solution. The Fund will acquire direct ownership of the commodities during shipment or during a pre-agreed storage period in an effort to provide investors with a low-risk, low-default, and diversified asset class.
The ICC SME TradeFlow Fund also aims to equip SMEs and small merchants with the technical resources necessary to manage their transactions more effectively. This will not only help to support existing trade, but it will also create new trade opportunities for companies that have historically been excluded from international markets.
As ICC and TradeFlow Capital Management collaborate to establish the ICC SME TradeFlow Fund, ICC seeks to develop a coalition of investor community partners interested in addressing the global SME finance deficit and supporting ICC’s mission.
ICC Secretary General John W.H. Denton AO stated at the ICC Future Trade Forum last week:
The global business community desperately needs new and impactful solutions that can materially address the growing trade finance gap, which disproportionately affects small- and medium-sized businesses. The ICC SME TradeFlow Fund can help unlock liquidity for SMEs in the commodities sector by providing an innovative and compelling solution to a broad array of investors