19th April 2021
Global supply chain service group Czarnikow and specialist fintech lender TradeBridge have today announced a new collaboration, introducing a supplier finance facility that will enable funding across Czarnikow’s entire product portfolio on both the buyer and seller side of the trade book.
Traditional banks prefer to support a limited number of exchange-traded commodities. This constraint presents a significant challenge to those supply chains engaged in the production and delivery of non-exchange-traded products. By enabling an entire ‘basket’ of products to be financed, TradeBridge’s facility opens up a range of trading opportunities to Czarnikow, to its clients and to the food and beverage industry at large.
The collaboration is a new hybrid structure, with TradeBridge supporting Czarnikow to connect the working capital needs of its key suppliers at one end of the supply chain, with its traditional banking partners engaged with the sales side receivables at the other end of the supply chain. This innovative end-to-end approach enables Czarnikow to deliver its full supply chain solution offering to suppliers and buyers alike, without interrupting the tradeflow. It exemplifies Czarnikow’s vision of a collaborative future for commodity finance.
A Structured Finance representative at Czarnikow says; “We have found that collaboration is key during the current environment and are working with both banks and funds to construct and provide collaborative funding solutions. We anticipate this funding model will inform the future of how we are able to conduct our operations, and welcome the collaboration with TradeBridge”
Amer Matar, Head of Commodity Supply Finance at TradeBridge says: “TradeBridge’s mission is to partner with innovative, forward-thinking companies and help them seize their growth opportunities. Commodity supply chains are evolving rapidly, and it is a privilege to work with Czarnikow, a thought-leader in commodity supply chain innovation.”