FreightX is a receivables 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 companies in the maritime sector through financing of their invoices.
THE PRODUCT
FreightX brings together sellers of invoices - bunker suppliers, port agents, offshore owners, shipmanagement companies, etc - 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 any market environment, FreightX can both improve cashflow and lower financing costs in a discreet and efficient process.
BACKGROUND
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
Once a seller has been onboarded by FreightX and approved by selected buyers, they can upload their invoices along with brief contract details onto the platform and launch a transaction to a tailored audience of buyers, for example, their existing banking group.
Buyers bid on the assets and once the asset is sold, payment is made immediately to the seller. Ownership of the receivable passes directly from seller to buyer upon receipt of purchase funding by the seller. Freight is paid by the seller's customer into a lockbox account in the seller’s name and settlement then takes place with the relevant buyer(s).
There are no sign-up, subscription, or servicing costs for use of the platform and fees are only paid when the sale contract is executed.
ABOUT FreightX
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.
ABOUT LiquidX
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.
ABOUT Broadbridge
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.
Phone:
+44 1892 854033
Email:
info@cdemurrage.com
Address:
Lloyd's Avenue House, 6 Lloyd's Avenue, London, EC3N 3AX, United Kingdom
