ETFL, Cyprus’ growing fintech company specialising in alternative B2B trade finance solutions to SMEs selling goods or services, is raising funds via a crowdfunding campaign, now active on the crowdfunding platform crowdX, regulated by CySEC.
ETFL is offering a 5.5-per cent fixed coupon on its secure one-year maturity bonds, with the underlying assets (i.e. trade receivables) credit insured with Alliance Trade (member of Allianz Re Group) and Atradius, the two global credit insurers.
Due to its strong cash-flow management systems, ETFL allows investors the ability for early exit with 30-day notice. The buybacks will be implemented via the crowdX platform, at: https://www.crowdx.eu/.
Multiple advantages for investors
In addition to earning a high return of 5.5 per cent fixed for one year maturity bonds with early exit option, and the fact that the underlying assets are credit insured with Allianz Trade or Atradius, the other advantages are:
- Investors can invest from as little as €1,000.
- There are no entry, brokerage or custody fees. Investors receive lower interest rate, only if they decide to exit earlier than the one-year maturity.
- The management team of ETFL has more than 100 years combined experience in the trade finance and financial industry.
- ETFL invests its own money in the same deals.
Trade finance specialist firm
The Company is owned by Athos Kyranides, a leading expert in Trade Finance Operations in Cyprus, who set up and managed the first factoring company in Cyprus (1992), the first factoring company in Greece (1995), and the first venture capital company in Cyprus (2000).
ETFL’s clients assign the credit invoices issued to their customers (debtors) to ETFL, and receive up to 85 per cent of invoice value to cover their working capital needs. When the debtor settles the invoice by paying the total amount to ETFL, the latter advances to the client the non-discounted element of the invoice less ETFL’s charges.
ETFL covers its risk by having its clients’ trade receivables credit insured by Allianz Trade or Atradius, two global credit insurers. This means that in the event of default of a trade debtor, the non-collected amount will be recovered from the credit insurer, thus avoiding losses.
Since ETFL commenced operations five years ago, it has never made any claim with the credit insurers due to the expertise and prudence of its management team.
Crowdfunding campaign
ETFL is raising €200,000 through bonds to finance new trade finance deals in the pipeline. The bonds will have an issue date of September 16, 2024 and a maturity date of August 31, 2025.
Proceeds from the issue of the bonds will be used exclusively to invest in fully insured new trade finance deals, as the Company seeks to expand its business activities.
More information is available at: https://www.crowdx.eu/investments/etfl-tf1/
