"Our Financial excellence is one of our most important advantages. We have been working with EF for over 2 years. EF exceeded all our expectations in profitability and contribution to the financial efficiency. We keep expanding our business with them."
Eli Kalif CPA,
Director Of Finance,
Today’s trade financing markets are rife with inefficiencies: Buyer companies with high credit ratings are often financed by supplier companies whose lower credit ratings cause them to pay high prices for trade financing, the costs of which are then effectively transferred to the buyers. Even highly rated suppliers face explicit and implicit costs in financing buyers due to credit exposure, collection costs, currency hedging and a lower Return On Assets (ROA). These inefficiencies add significantly to the costs of doing business, increasing the uncertainties in commercial relationships and weakening balance sheets due to increased Days Sales Outstanding (DSO).
EF engineers and delivers financial services that capitalize on and solve such financial inefficiencies by employing five economic approaches:
- EF analyzes real-time receivables and payables information (e.g. receivables and payables), such as that not normally available to financial institutions, to minimize risks for our clients.
- EF utilizes real-time access to multiple funding sources to locate capital on the best available terms.
- EF arbitrages the credit ratings of trading partners.
- EF helps companies share the economic value created among all contributing participants, thereby providing a participation incentive.
- EF delivers these services in an automated fashion, to minimize transaction costs.
These fundamental approaches serve as the foundation for all our products and services. In addition to our innovative instruments, we will also apply them to remove costs and risks from standard financial solutions such as securitization, credit insurance and currency hedging.