MODIFI Grants $2m USD line to Electronics trader in Hong Kong

MODIFI is excited to announce a new financing line for an electronic devices wholesaler in Hong Kong. The exporter, which also has an entity in mainland China, sells a variety of consumer electronics, including smart watches, mobile phones and e-scooters, as well as more industrial electronic equipment, including solar panels. The exporter traded with buyers in Europe (mostly Denmark and the UK) and was looking for a solution which minimized their operational risk whilst improving their financial strength.

With MODIFI's seller finance, the company was able to have risk insurance against their buyers. This meant that even if their buyers defaulted due to insecurity surrounding Covid-19 or any other disruption, they would not lose out. Better still, since MODIFI paid out the value of the invoice as soon as the goods were shipped, the company would already have the cash for the invoices and not go through the long and difficult process of filing a claim or starting litigation against the buyer.

CEO Mr. W was delighted with the extra protection MODIFI gave his company in a sometimes complex and risk filled trading environment. "We have seen lots of disruption this year and the full effects of national lockdowns are often yet to be fully felt by some of our customers. We wanted a solution that would protect us from risk, meaning we could keep on offering competitive open account payment terms to our suppliers without having to worry. The fact that we get additional working capital to grow our business is of course a great bonus".

Tony Au, Regional Head of Greater China, was pleased to give the company the peace of mind they needed. "We are primarily financiers, but trade finance really is about both finance and risk. This was the case for old trade finance instruments like Letters of Credit and is very much the same for us. Therefore, when Mr. W told us he wanted a solution that protected him from risk whilst still providing the benefits of additional working capital, we were only too happy to oblige."

MODIFI is solving global trade finance for SMEs. Using simple digital solutions, MODIFI looks to remove the paperwork, hassle and red tape that hampers those involved in international trade, giving them the working capital and risk protection they need to thrive.

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Elena Ermishina
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