FreightX is a freight receivable financing product launched by C Dem Finance Ltd (“ C Dem”) in partnership with LiquidX Inc., a global network for illiquid financial assets and the largest electronic marketplace for trade finance assets. Our objective is to provide liquidity to ship owners and operators through financing of freight invoices.
FreightX brings together sellers of freight invoices with buyers of receivables from high credit quality counter-parties such as banks, asset managers, and trade finance funds. Buyers frequently have existing credit relationships with the counter-parties, including unutilized committed facilities for the underlying obligors. They can therefore quickly evaluate price and risk metrics to facilitate rapid deployment of these lines for short-term financing of freight invoices. Sellers of freight receivables gain by having an additional source of off-balance sheet liquidity at a cost as good as, or frequently better than, their corporate borrowing rates. The transaction and the terms of the freight are confidential and the charterer is not required to be notified.
In the current difficult tanker market environment, FreightX can both improve cashflow and lower financing costs in a discreet and efficient process.
The FreightX product is hosted by LiquidX, a global network for illiquid financial assets and the largest electronic marketplace for trade finance assets. LiquidX was established in 2016 with the backing of Broadridge, the leading provider of fixed income and other capital markets settlement and clearance which handles over USD 5trn volume per day. The LiquidX platform has transacted over USD 14 billion in trade volume and currently trades USD 800m per month.
Current users of the LiquidX platform include manufacturing & pharmaceuticals companies, along with a growing number of oil majors and commodities businesses. FreightX is the section of the LiquidX platform designed to cater for shipping invoices.
PROCESS & FUNDS FLOW
FreightX is a partnership between C Dem Finance Ltd and LiquidX Inc. C Dem Finance Ltd was established in 2018 to primarily finance shipping receivables, including freight, charter hire and demurrage claims.
LiquidX Inc. is a global network for illiquid financial assets and the largest electronic marketplace for trade finance assets. Through its leading technology platform and a diverse and flexible pool of capital, our transaction-based marketplace provides a transparent platform for tapping the capital markets to deliver best price execution for trade finance assets. The marketplace is open to all participants including large corporations, banks, asset managers, hedge funds, insurers and family offices to trade risk and to invest in the trade finance asset class. Our seller base is diverse and deep with credits from the largest global companies, and our buyer base ranges from the largest global banks to community banks, hedge funds, and global asset managers. The trading platform has executed over $14 billion of trade volume and processed over $50 billion in post trade settlement to date. For more information about LiquidX, please visit www.liquidx.com.
Broadridge Financial Solutions, Inc. (NYSE: BR) is the leading provider of investor communications and technology-driven solutions for broker-dealers, banks, mutual funds and corporate issuers globally. Broadridge’s investor communications, securities processing and managed services solutions help clients reduce their capital investments in operations infrastructure, allowing them to increase their focus on core business activities. With over 50 years of experience, Broadridge’s infrastructure underpins proxy voting services for over 90% of public companies and mutual funds in North America, and processes on average $5 trillion in equity and fixed income trades per day. Broadridge employs approximately 7,400 full-time associates in 14 countries. For more information about Broadridge, please visit www.broadridge.com.
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