Velotrade is a digital trade finance platform that connects businesses seeking working capital with institutional investors looking to invest in trade receivables. Established in 2015 and headquartered in Hong Kong, Velotrade offers collateral-free financing solutions to support business growth and optimize cash flow. By leveraging advanced technology, the platform provides a seamless, paperless experience, enabling companies to access funds quickly and efficiently. Velotrade is regulated by the Securities and Futures Commission of Hong Kong, ensuring a secure and compliant environment for all users.
Key Features and Functionality:
- Invoice Financing: Businesses can receive cash advances on unpaid invoices, allowing them to reinvest in operations and improve cash flow without requiring collateral.
- Supply Chain Finance: Offers collateral-free financing to optimize working capital for both buyers and suppliers, ensuring timely payments and financial stability across global supply chains.
- Purchase Order Financing: Enables businesses to finance their procurement and supplier payments, helping them expand operations and fulfill more orders without adding debt to their balance sheets.
- Paperless Onboarding: The platform facilitates a fully digital onboarding process, exchanging all documents electronically for enhanced flexibility and security.
- Transparent Fee Structure: Velotrade charges only two fees: a processing fee based on a percentage of the invoice value and a financing cost as an interest charge on the advanced amount.
Primary Value and User Solutions:
Velotrade addresses the critical need for accessible and flexible trade financing, particularly for small and medium-sized enterprises (SMEs) that often face challenges in securing traditional bank loans. By providing collateral-free financing options, Velotrade helps businesses maintain optimal cash flow, meet operational demands, and seize growth opportunities without the burden of additional debt. The platform's digital nature ensures a swift and efficient financing process, reducing the time and effort required compared to conventional methods. For institutional investors, Velotrade offers a regulated environment to invest in the trade receivables asset class, presenting an alternative avenue for yield generation.