Tradewind Finance announces entry into financing bunkering market

Tradewind Finance, an international trade finance firm with headquarters in Germany, on Monday (17 July) said it has successfully entered the bunker market, delivering a USD 2 million credit facility for an international bunker trader.

“We are proud to announce our entry into financing the bunkering market, a cash-intensive sector that makes factoring and its access to ready liquidity a natural fit,” it said in a social media post. 

“The entry is marked by our delivery of a USD 2 million credit facility for an international bunker trader.”

In a statement, Tradewind elaborated that in the case of its new bunker client, factoring is a natural fit for their oil operation.

“Designed to increase cash flow, factoring makes it possible for the bunker broker to access the capital to trade high volumes of fuel, allowing it, in turn, to increase margins,” it said.

A spokesman from Tradewind, said: “We are proud to provide a factoring solution for our new client, enabling them to expand their customer base using the additional cash flow from the facility. With the facility in place, our client can concentrate on growth, knowing their invoice collection is covered, and does not have to wait long periods for their buyers to pay.”

“Factoring with Tradewind has taken care of this. Other bunker traders are currently looking very closely at using these factoring facilities, so we are excited at the prospect of expanding more in the bunkering business.’’

Tradewind explained that for bunker companies and others outside the industry that are involved in B2B transactions, access to cash is precisely – and conveniently – what trade finance is designed to provide. The working capital support allows companies to stay more than afloat and finance their growth aspiration.

“In performing the trade finance service known as factoring, Tradewind, as the financial intermediary, buys a company’s receivables and can advance them up to 95% of the invoice value upfront, in cash, typically within just a short matter of days. This quick injection of liquidity enables suppliers to meet their short-term capital needs and pursue faster growth,” it concluded. 

Photo credit: Tradewind Finance
Published: 18 July, 2023