Eurivex Trade Finance Limited (“ETFL”), a 100% subsidiary of Eurivex Ltd is offering investors the opportunity to invest in corporate bonds whose underlying assets are Trade Finance facilities with the objective to earn better returns than those offered by commercial banks. In cooperation with Eurivex Ltd, ETFL have made investing simple.
Investors have the choice of two different bonds:
• Credit Insured – where the underlying assets are 100% credit insured
• Recourse– where the underlying assets are covered by recourse to suppliers
Capital at Risk –Invest Responsibly. Corporate bonds are non complex instruments but come with a high risk of losing money. You should consider whether you understand how corporate bonds work and whether you can afford to take the high risk of losing your money.
ETFL is an alternative to bank business funding solutions provider, supporting all types of businesses based in Cyprus and other countries engaged in trade, services, and e-commerce.
When a business offers credit to its customers for goods and services supplied, instead of waiting for on average 90 days until the trade debtor settles an invoice, it assigs the invoice to ETFL and receives immediate cash, thus solving its liquidity and cash flow problem. In sharp contrast to banks, ETFL does not require business owners to give personal guarantees or mortgage assets. The assigned invoice is the only collateral.
ETFL’s Credit and Risk Management Committee performs a thorough evaluation of both the suppliers and debtors and assigns specific limits to every supplier and each of its trade debtors.
In the case of Credit Insured business, ETFL obtains credit insurance cover on the trade debtors from Euler Hermes, the global AA rated multinational. This means that in case of debtor default, it submits a claim to Euler Hermes and recoups 85% to 90% of the outstanding amount. Since ETFL’s financing never exceeds 80% of any outstanding invoice, our cover is always well in excess of 100%.
In the case of the Recourse business, ETFL offers funding to suppliers with widespread debtor diversification and strong financials who meet its strict evaluation criteria. This means that in the event of any debtor default, such balances can be easily recouped from the supplier.
For example, let’s assume that a supplier assigns to ETFL invoices totalling €100.000 pertaining to a number of trade debtors and receives €80.000 funding from their discounting. Then, suppose some of these debtors fail to settle by the due date invoices totalling €5.000. In this case, ETFL will cover the uncollected €5.000 by using the proceeds from the collection of the rest of the invoices from other debtors. In the unlikely event that these will not suffice, ETFL will turn to the supplier exercising its recourse option.
ETFL seeks to diversify risk through significant dispersion of investments by geography, economic sector, and size as well as through the diversification of its investment portfolio.
Once the trade finance facility is provided, ETFL issues bonds with 6 months maturity and offers investors the opportunity to invest and participate in the return generated from its trade finance activities.
Investors earn 1.5% p.a. on the Credit Insured bonds and 3.00% p.a. on the Recourse Bonds.
Here are the characteristics of the investment:
⦁ Highly Secure with satisfactory return compared to bank current account
⦁ Duration of only six months with option to renew on same terms
The money is invested immediately on a first-come-first-serve basis, irrespective of the size of investment, since all investors are treated equally by Eurivex. All you need to do is decide which bond to invest in and the amount, leaving the rest to us.
Invests only in Bonds issued by ETFL whose underlying assets are 100%
Credit Insured by Euler Hermes. In case of debtor defaults, the money is recovered from Euler Hermes.
Invests only in Bonds issued by ETFL whose underlying assets are trade.
Finance facilities with right of recourse on Suppliers to whom funding has been given. In case of debtor defaults, the Supplier bears the risk.
The process is simple. Here is what you need to do:
Here are the characteristics of the investment:
⦁ Open an investment account with Eurivex Ltd, a Cyprus Investment firm, established and operating since 2010, regulated by CySEC, license number 114/10. The onboarding process is very simple, and you will be required to upload a copy of your identity card/passport as well as a most recent utility bill as part of the basic KYC process.
⦁ You will receive a welcome email from Eurivex providing you with Eurivex Clients Bank Account details where you may transfer your money, segregated from our money. Eurivex does not accept cash deposits or transfers by card. Only transfers from the bank account of the customer are accepted in line with the EU’s AML rules.
⦁ Once the money is cleared and credited to your client account at Eurivex Ltd, you will be able to decide the amount to invest. For example, you may invest all the money in the Credit Insured Bonds or all the money in the Recourse Bonds or split between the two.
⦁ If you select “Reinvest”, the proceeds (capital plus return) on maturity after 6 months will be invested in the same Bonds as before.
⦁ If you don’t select “Reinvest”, the proceeds will be available in your Eurivex account and you may withdraw the total (capital plus return) to the bank account from where your money originated without any exit or penalty fees.