Working Capital and Trade Finance:
Growing incentives for working capital funding
Corporate treasurers are increasingly looking to turn their fungible and high-quality receivables and payables to cash. There is a global rise in working capital needs, notably from mid-market firms.
Historical default rates remain low given the short-term and self-liquidating nature of trade finance transactions, making it an investible asset class.
Channel offers attractive trade finance structures to investors in its managed funds and debt products platforms.
Trade Finance as an asset class is opening up to non-bank investors
With greater regulation and increased capital requirements, banks are incentivised to open up their financing facilities to non-bank players.
Securitisation is one prominent means that banks use. Investors benefit from well-structured securitisations within ring-fenced SPEs with well defined risk characteristics and enjoy the benefits of portfolio diversification.
A good partner at your side is key to originate and robustly structure these transactions in a format that is suitable for your balance sheet. Channel manages a combination of debt and investment funds at various risk/return targets.
Channel is your ideal partner to access this asset class
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A proven origination network & repeat clients ensure a wide choice of transactions.
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Experience in structuring robust financings over a 13-year track record
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Use of true sale structuring, credit enhancement, subordination/over-collateralization techniques, risk reserves
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Ratings and listings are available for debt placement.
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Daily portfolio and transaction monitoring by a dedicated programme management team.
We team up with best in class service providers
Investor
Trustee
Originator
Listing Agent
Calculation and reporting agent
Paying agent
Credit rating agency
Legal advisors
Registrar
AUP Agent
Custodian
Auditor
Credit enhancer
