PURE COMMODITIES FZCO
OUR BUSINES, GOALS AND ACTIVITIES
To deliver excellent and time service to best suit its client in the rapidly changing and turbulent environment.
We believe a company can only thrive when it pleases its employees, partners and customers and we endeavour to do just that by offering exceptional customer service at all times.
We believe a company can only thrive when it pleases its employees, partners and customers and we endeavour to do just that by offering exceptional customer service at all times.
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Our business development activities are based on a deep understanding of the entire process value chain around the world.
Our goal is to offer the best service to our clients.
We have a close-knit team of professionals with many years of international experience in the financial field, including in financial institutions like banks and investment funds.
High knowledge of business, cooperation, openness and punctuality are very appreciated within our team.
Our goal is to offer the best service to our clients.
We have a close-knit team of professionals with many years of international experience in the financial field, including in financial institutions like banks and investment funds.
High knowledge of business, cooperation, openness and punctuality are very appreciated within our team.
There is a distinct business case for collateral management services
Current market trends in Commodity Trade Finance
Financing from traditional sources declined:
fraud losses, stricter money-laundering regulations, and high capital requirements pushed many well-known traditional banks to either completely exit the business or concentrate on a very limited number of home markets.
Increased financing needs:
this comes about with not only the increased prices for many commodities, but also increased operating costs across the board – from shipping to inspections and other logistics.
Access to financing for small to medium sized players almost closed:
banks have substantially decreased or closed in full financing for smaller traders and tightened lending conditions. Banks prefer to work with well known big trading houses and majors leaving smaller players underfunded.
Financing from traditional sources declined:
fraud losses, stricter money-laundering regulations, and high capital requirements pushed many well-known traditional banks to either completely exit the business or concentrate on a very limited number of home markets.
Increased financing needs:
this comes about with not only the increased prices for many commodities, but also increased operating costs across the board – from shipping to inspections and other logistics.
Access to financing for small to medium sized players almost closed:
banks have substantially decreased or closed in full financing for smaller traders and tightened lending conditions. Banks prefer to work with well known big trading houses and majors leaving smaller players underfunded.
Implications and business opportunity for PURE
becomes attractive for new funding providers
Cost of funding for commodity trade is increasing and becomes attractive for new funding providers (investment funds, family offices, etc). Growing involvement of alternative lenders is already observed especially where banks do not want to go.
do not have expertise and infrastructure
New lenders are not willing to provide unsecured financing but do not have expertise and infrastructure to handle collateral.
PURE services are needed for both traders (to obtain funding) and new lenders (to ensure repayment and reduce risks)
becomes attractive for new funding providers
Cost of funding for commodity trade is increasing and becomes attractive for new funding providers (investment funds, family offices, etc). Growing involvement of alternative lenders is already observed especially where banks do not want to go.
do not have expertise and infrastructure
New lenders are not willing to provide unsecured financing but do not have expertise and infrastructure to handle collateral.
PURE services are needed for both traders (to obtain funding) and new lenders (to ensure repayment and reduce risks)
Our services allow to facilitate all aspects of collateral for new lenders
Before funds disbursement
- Assessment of transaction feasibility
- Advising on transactional structure and underlying risks
- Collateral valuation
- Counterparties assessment (suppliers, buyers, warehouse keepers, forwarders, etc)
- Insurance check
- Assessment of transactional documents
During lifecycle of transaction
- Handling original shipping documents
- Physical inspections of financed goods
- Control over goods movements
- Control over execution of underlying purchase and sales contracts
- Price risk monitoring
- Monitoring of mass media, markets and legal environment
- Control over underlying payments and pledged accounts
Special situations
- Managing facility and security documentation
- Distressed assets handling
Target customers
Our company realized that commodity Finance Market becomes attractive for alternative lenders (investment funds, family offices, etc). At the same time new lenders are not willing to provide unsecured financing becouse do not have expertise and infrastructure to handle security (collateral) for that financing.
Therefore, we strongly believe that our collateral management services are needed for both traders (to obtain funding) and new lenders (to ensure smooth repayment and reduce risks).
Commodities
We are working with different types of commodities with the focus on
- softs (grain, barley, corn, sunflower seeds, sunflower oil, sunflower meal, soybean, etc)
- fertilizers (urea, ammonium nitrate, potash, etc)
- oil products (gasoil, fuel oil, naphtha, etc)
- petrochemicals (ethylene, polypropylene, toluene)
- ferrous (steel, iron, etc) and non-ferrous (zinc, copper, nickel, etc) metals.
