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Velotrade is the first trade finance platform regulated by the Securities and Futures Commission of Hong Kong (SFC) and recognised as the Best SME Invoice Solution by the Hong Kong Monetary Authority and The Bank for International Settlements. With the use of financial technology, the company specialises in trade finance solutions to address the USD 1.5 trillion market failure in the factoring market by matching businesses demanding financing with investors having excess liquidity across global markets. Its headquarters is located in Hong Kong and also operates with an office in Vietnam.

Founded in 2015, this award-winning platform functions as a marketplace to unlock working capital for businesses, and to provide investors with an alternative asset class. Major financing products are tailored for eCommerce, import & export, suppliers and retail industries, especially for SMEs.

History
Velotrade headquarters in Hong Kong was established in 2015 , followed by the founding of its tech hub in Vietnam. It also obtained a Money Lender's Licence (1943/2019).

In 2018, Velotrade received the Type 1 License from the Securities and Futures Commission of Hong Kong.

Velotrade completed the first cross-border trade financing transaction into Mainland China with QEX in 2019.

In 2020, Velotrade was awarded as the Best SME Invoice Solution by Hong Kong Monetary Authority and The Bank for International Settlements at Tech Challenge, demonstrating the potential for the digital platform’s latest technology to tackle problems in trade finance. Later in the year, MUFG announced its partnership with Velotrade for the enhancement of digital trade services.

Product Scope and Technology
Velotrade's platform is fully digitalised and developed in-house. All transactions are done online via the SFC-licensed proprietary platform. For the partnership with MUFG, a highly customised version of the platform has been delivered to automate thousands of trade invoice transactions for the bank’s internal invoice processing

enhancement. The in-house development capabilities allow streamline transaction workflows and processes to meet actual needs.

The company focuses on trade finance products such as invoice discounting, eCommerce financing, supplier financing and purchase order financing, and is able to display higher flexibility when compared to traditional institutions. It targets at SMEs with the need to settle cash flow imbalance, and corporates seeking funding sources for business expansion, especially as a crucial accelerator during the period of business recovery.

Asset Characteristics

 * low correlation with traditional market instruments like equities, bonds, commodity, real estate
 * attractive for portfolio diversification
 * short term maturity

Characteristics for Financing Side

 * Close the gap between the time the revenues are generated and the time the buyer makes the payment
 * Obtain liquidity to make investments, as well as the working capital to pay suppliers or salaries
 * Mitigate cash flow imbalance related to extended payment terms due to economic distress brought by COVID-19

Risk Assessment
The company has announced the selection of Dun & Bradstreet's data and analytics tool. At its core, Velotrade has always put the greatest emphasis on a thorough process of risk analysis while some competitors and peers have been focussing on volume with extremely dire consequences. Greensill Capital’s swift growth and collapse is the most egregious example of such a misguided approach. Velotrade values a holistic and global risk assessment with reference to both qualitative and quantitative variables.