ETFL Limited, the fintech operating since 2018 offering trade finance services, and providing alternative financing solutions to small and medium sized entities (SMEs) that are involved in the sale of goods and services successfully completed a €300,000 crowdfunding campaign on crowdX.eu and saw its issue overfunded.
ETFL provides trade finance without asking the SME owners to give personal guarantees or mortgage assets. The only collateral is the invoices issued to the SME customers which are assigned to ETFL.
ETFL’s clients assign the credit invoices issued to their customers (debtors) to ETFL and receive pre-payment up to 85% of the 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.
Security of assets
When a supplier wishes to become a client of ETFL, it informs ETFL about the identity of all its debtors, the projected volumes of business for each customer and the offered credit terms. ETFL then applies to Allianz Trade or Atradius, the two global credit insurers for specific credit limits on those debtors. This means that in the unlikely event that any one of those insured debtors were to default, then ETFL would submit a claim to the credit insurers and recoup the money that it had prepaid.
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. Essentially, the risk of default of the trade debtor in Cyprus is shifted to the two global credit insurers.
High return on secure bonds
ETFL was offering investors the opportunity to invest in Trade Finance products with the objective to earn better returns than those offered by commercial banks. Investors can invest from as little as €1,000 and earn 4.5% per annum on secured bonds, considering that the underlying assets have been credit insured with Allianz Trade and Atradius, the global multinationals, which reduces the risk of default to zero.
The campaign was active from November until end of December 2024. The Company raised a total of €310,721 as the campaign was overfunded above the original target of €300,000.
Advantages for investors
ETFL was offering attractive benefits for the investors who invested via https://www.crowdx.eu/investments/etfl-tf2/ such as:
- High Return: Investors are receiving 4.5% per annum interest with the ability to exit sooner by giving 30-day notice.
- Secure bonds: Underlying assets are credit insured with Allianz Trade or Atradius, which means that if any of the debtors of ETFL’s clients were to default, ETFL would make a claim and recover the money.
- Early Exit Options: Investors can exit earlier by giving 30-day notice or trade the bonds on the CrowdX Secondary Market.
- Low Entry Investment: Investors can invest from as little as €1,000.
- No Hidden Fees: 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.
- Proven Track Record: The management team of ETFL has more than 100 years combined experience in the trade finance and financial industry.
- Aligned Interests: ETFL invests its own money in the same deals.
- Tax benefits: Capital gains are tax exempt for local residents and apply for this investment.
About CrowdX
CrowdX operates under the European Crowdfunding Service Providers (ECSP) regulation, with license number CSP 2/24 from the Cyprus Securities & Exchange Commission (CySEC).
CrowdX provides crowdfunding services across the EEA to investors looking to invest in promising investment opportunities as well as to project owners looking to raise funds.
CrowdX is owned by Eurivex Ltd, a regulated Cyprus Investment Firm, located and operating from Cyprus. For further information please contact [email protected].
