"ship now, pay later"

A British trade finance company, funded at low cost from the city of London, supporting international trade on open account with deferred payment around the world.

About PrimaDollar

PrimaDollar was founded in 2015 to provide a low cost and practical solution to the financing of supply chains around the world.

We have offices across South Asia allowing us to serve needs of emerging market exporters in lower cost locations via our local teams - and support their international buyers with our resources in-country.

We are now developing export support services in the UK, Europe and the US.

FACT: most supply chain finance does not provide the support needed by suppliers.

Supply chain finance has become a much-discussed topic. Whilst many multi-nationals have successfully implemented programs to help their larger suppliers, most global trade is unsupported for a variety of reasons. These reasons include:

  • a failure to on-board smaller suppliers and suppliers in emerging markets
  • implementation complexity for the buyers
  • the fact that finance comes to late to meet the needs of many suppliers (who need to be paid at shipment, not later after delivery when invoices are approved)
  • a lack of support for pre-shipment (letter of credit, down-payments and other trade finance solutions)
  • accounting concerns (in case supply chain finance is re-characterised from trade credit to short term debt)

FACT: margins in supply chains are reducing, and so cost is a major factor in decision-making.

In most industries, margins are being squeezed by the internet and the rise of fulfillment retailing models (led by Amazon, Ebay etc). Any supply chain finance provider has to focus on providing an efficient, easy-to-use, quick and simple solution. But the most important requirement is that costs are kept low and this requires:

  • access to low cost funding sources
  • intelligent management of risk
  • use of technology to reduce operating costs
  • immediate access to finance for customers (within 24 hours of first request)

FACT: banks are not best placed to provide international supply chain finance.

Most banks are reducing their commitment to trade finance and cross-border banking activities. Regulators are generally influencing banks to use domestic deposits to fund domestic retail assets. Capital allocation under Basel III means the economics of trade finance are less attractive for Western banking groups and compliance oversight makes it increasingly expensive to manage international counterparty risk.

FACT: most buyers are looking to find lower cost locations, but finance is a major obstacle.

As margins come under pressure‚Äč, buyers are having to find smarter sourcing solutions, but moving supply chains to lower cost locations inevitably runs into problems when new suppliers need LCs or cash upfront. Solving this issue opens huge opportunities for buyers to reduce costs without pressure on banking lines, financial covenants or procurement departments.

PrimaDollar launched its first financing solutions in Q4 2016, focusing on garment exports out of Bangladesh to clients around the world. Rapid growth has followed as PrimaDollar has expanded geographically and into new industries.

PrimaDollar's solutions are quicker, cheaper and simpler
than the alternatives and are properly designed to meet the needs of suppliers.

We pay at shipment, our advance rates are high and our charges are low. We can take on trades at short notice because there is no software to install and we can potentially provide funds within 24 hours. Our platforms are designed precisely to fill the gaps in the market developing as a result of major global trends.

Current statistics:

  • we arrange LCs and purchase invoices from factories, traders and buying houses in 10 countries
  • those trades are with buyers in 16 countries
  • we have worked in 9 industries now including: garments, textiles, food, pharma, furniture, electronics, metal products, natural stone, certain bulk commodities (shipped in containers)
  • we have supported trades involving carriage by air, sea and road
  • monthly volumes of business are showing a compound growth rate of over 50%
  • many of our clients are SMEs in emerging markets, and our support is an essential driver of economic growth