TradeFlow transforms the risk of SME commodity import-export transactions — the lifeblood of modern economies — into investment-grade products for banks and investors. We use a proprietary Risk Transformation Engine combined with the latest digitalisation technology, including artificial intelligence, to power an innovative non-credit, non-lending model that delivers superior risk-adjusted returns and capital preservation.
Origin
In 2016 the founding team — with a diversified background spanning commodity trading, shipping, technology and law — came together to research the trade finance gap faced by SME firms in bulk commodity markets. We found the gap was driven by changing banking regulations, rising KYC and AML costs, and a structural mismatch: most SMEs have proven operational expertise but lack a three-year track record, balance-sheet size, or per-trade transaction size to qualify for traditional bank credit.
Our solution turned out to be simple in principle: enable the transaction without giving credit. The two CEMP TradeFlow Funds — USD (live since May 2018) and EUR (launched February 2020) — take a neutral principal position and direct ownership of the commodity during shipment or pre-agreed storage.
Why investors come to us
A globally non-credit approach to access the low-risk, low-default, diversified returns of the trade finance asset class.
A digital platform that on-boards counterparties in roughly three days with full bank-level AML / KYC checks.
Bespoke scorecards developed with Lloyd's of London underwriters to rate counterparty risk and the risk of every individual transaction.
90-day liquidity — often making the fund a fixed-income alternative or even a cash-management tool.
We don't lend money or extend credit. That means we don't compete with banks; we complement them. Banks routinely refer SME clients they can't profitably support — typically with annual turnover below US$300 million — and we transact those flows.
