Creating a New Asset Class in Trade Finance

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					Creating a New Asset Class in Trade Finance
       Stuart Morrison, CEO, EZD Limited


             www.ezdglobal.com
 Why Present Day Trade Finance is Restrictive

• Traditional trade finance suppliers are restricted by their
  methodology - trading in documents not goods.

• The amount of funding available to trading parties is
  constrained by the lower of the parties credit worthiness.

• Funds are secured on the balance sheet of the counter parties
  to the commercial transaction.

• Lack of appetite to participate in Open Account funding due to
  limited understanding of the risks.
                        Risk
         Pur
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Time
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         Pay
            m   ent
                               Managing Risk of Non-Payment Through Logistics




          Sto
              ck
                      The Underlying Value of Goods in Transit
          40.000


          35.000


          30.000


          25.000
value $




  Risk
     20.000


          15.000


          10.000


          5.000


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                                                                   Acc
                                              Time
                                           Innovative Solution
          40.000


          35.000                            Risk management enables the value shift

          30.000


          25.000
value $




  Risk
     20.000                                            Cash acceleration
          15.000


          10.000


          5.000


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                      Emerging Markets Yield
                                           New Asset Class                             Mature Markets Yield
           Pur




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                                                                          Acc
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            Benefits for Vendor’s/Exporters

• Immediate access to funds based on trouble free goods dispatch

• Increased cash capacity allowing growth and expansion

• Gives Letter of Credit security with open account flexibility

• Gives time definite settlement

• Reinforces trading partnerships
              Benefits for Buyers

• Lower finance costs due to reduced requirement for
  additional funding or Letters of Credit

• Increases and diversifies open account credit terms

• Buying on extended supply chains is no longer a balance sheet
  burden that must be funded
• Purchasing risk due to non-performance is much reduced or
  eliminated

• Strengthens global supplier partnerships allowing negotiation
  of better trading terms
                      Conclusion

• The asset class is global.

• Impetus towards global open account supply chain will result in
  incremental growth in low risk open account methodology.

• Visibility and efficiency of the supply chain is not enough.

• New sources of trade finance will be available by greater
  understanding and management of supply chain risk.

• Unlocking the value in global trade.
 EZD is a Global Financial Logistics Company
 EZD provides a financial logistics solution that transforms extended supply chains by delivering new significant sources of trade
 finance. It delivers benefits to buyers, manufacturing exporters, financial institutions, and logistic providers.


 Dynamic risk mitigation
 EZD links the movement of goods and money into one flow, and by mitigating supply chain execution risk puts the economic
 benefit of this integration to work for the buyer and vendor of containerised goods.


 Strengthens trade partnerships
 The vendor benefits from accelerated non-recourse cash flow and the resultant reduction of debt plus balance sheet improvement.
 The buyer benefits from a more financially secure supply chain with continuous cost and quality optimisation options


 D.Risk process
EZD financial logistics is a process supported by web enabled Global Trade Management visibility and integration solutions.
It is recognised by international banks as a replacement for Letters of Credit and secures participation in open account trading
With its innovative supply chain finance approach
Stuart Morrison   EZD Limited
          CEO     Token House
                  12 Tokenhouse Yard
                  London EC2R 7AS
                  Tel/Fax: +44(0) 870 1417350
                  Mobile: 07895 918796
                  email: stuart.morrison@ezdglobal.com