How Our Business Operates
Synthesis provides access to transactional commodity trade financing of pre-sold goods where transactions of 20-90 days tenor are backed by investment grade credit support providers. This produces 8%-10% gross returns with very low volatility, de-correlated from capital markets. We provide funding for companies who have strong business models, but need outside help to finance their larger transactions.
We finance transactions, not companies
We are not a lender in a traditional manner and we do not provide loans to companies. All funding that we provide is repaid upon completion of the transaction and our exposure ends at that point.
We step directly into the transaction
Most of the transactions that we finance are the simple sales of goods to end buyers. In this case, we are bridging the time gap between dispatch of the goods by the supplier, and receipt by the buyer. We pay the seller directly, we take ownership of the goods until receipt, and collect sales proceeds directly from the buyer.
We always require either credit insurance or a letter of credit
All transactions financed are required to have a letter of credit or credit insurance provided by an investment grade institution. This provides an additional layer of protection for every deal.
We provide funding for companies who have strong business models, but need outside help to finance their larger transactions.
We see the common advantages of investing in a trade finance strategy as:
- Producing similar returns to direct lending whilst removing the actual risk of the SME.
- Being secured on an actual sales price, rather than a mere valuation like in property lending.
- Short-dated, self-liquidating transactions means that the investor will have no long-dated exposures to geo-political or credit risks.
Synthesis sources, underwrites and monitors these transactions on an ongoing basis for direct investors and those looking for the diversification and scale offered by our fund and bond program. We have an existing pipeline of $300m to fund, in transactions with an average size of US$ 5million.
Synthesis group of companies
Synthesis trade finance I. S.A
STF is a bankruptcy remote company, set up purely to finance structured trade finance transactions. It has an independent Board of Directors with a long experience of the management of collective investment vehicles, risk management and compliance. The Board of Directors is supported by a team of expert Special Advisors in the field of trade finance.
Synthesis structured commodity trade finance limited
SSCTF is the UK-based company which originates business. SSCTF works with companies to structure solutions to their financial requirements and helps to arrange funding and a strong security package before arranging funding via STF or via participation agreements.
Goods we finance
Agricultural commodities are often seasonal which makes it harderfor small companies to raise finance. Using our strong market knowledge we can seek out mutualy beneficial relationships
Oil and Energy Products
With buoyant consumption of oil products around the world and long delivery times, there is continual demand forfunding.
Semi-finished or Finished Goods
A proportion of our portfolio may be used to finance non-commodities as long as the margins are strong and the products are generic andliquid.
View our brochures for an easy to read guide on all of the services that we offer