TradeFlow, which has reached a preliminary agreement to be sold to Supply@ME Capital, has posted returns of about 0.5% a month since it was formed in 2018, avoiding the turmoil that has buffeted commodity markets during the pandemic. The fund returned 5.9% last year and 6% in 2019.
The Paris-based International Chamber of Commerce represents 45 million companies in 100 countries around the world and will help spearhead the funding drive with its members. The chamber also reached an agreement with fintech firm Finastra to develop a marketplace to ease access to trade finance for small businesses, according to a statement.
The US$42 million ($56.43 million) fund’s typical transaction size is as low as US$200,000, yet it sees a funding gap of US$1.5 trillion for small firms in the sector. TradeFlow financed more than 300 transactions last year, according to a December update.
