ICC and TradeFlow Capital Management unveil plans to launch the ICC SME TradeFlow Fund to improve access to trade finance for SMEs in the commodities sector


ICC and TradeFlow Capital Management unveil plans to launch the ICC SME TradeFlow Fund to improve access to trade finance for small- and medium-sized enterprises (SMEs) in the commodities sector, to be established in Europe.

This launch is the culmination of over a year and a half of efforts by ICC and TradeFlow Capital Management to bring this unique offering to market which intends to help SMEs access trade finance.

This will be a fund advised by the founders of TradeFlow Capital Management, Dr Tom James and John Collis, specifically targeted to enable businesses in the commodities sector around the world and working in conjunction with ICC’s TradeNow programme.

Building on 5 years of success with CEMP USD TradeFlow funds, John and Tom will bring their method to the ICC SME TradeFlow Fund to help unlock liquidity in SME commodity markets and increase financial inclusion across the commodity sector.

Over the last 5 years, TradeFlow Capital Management funds have enabled more than $1.5b of trades for SME commodity firms and contributed to promoting SME businesses and commodity trades to every continent on the planet and, throughout, made continued, positive returns with low volatility to their investors.

Working with ICC gives TradeFlow Capital Management the opportunity to bring the benefits of its method to even more SMEs in the commodity sector around the world.


Avoiding credit-risk related collapses : TradeFlow reduces risk in SME trade finance using innovative FinTech, non-lending, non-credit system


When large credit lending firms collapse, huge shockwaves are sent throughout industry; the risk of contagion looms, threatening thousands of jobs, disrupting supply chains for essential goods, and increasing the barriers to credit  that hits SMEs most.

Recognising these challenges, TradeFlow uses a system to enable trade that removes the issue of credit insurance whilst enabling SMEs trade profitably. FinTech-powered, it is non-lending, non-credit based and reduces fraud risk with more control over the logistics and testing of commodities transacted as a neutral principal; IOT tracking devices and the use of drones are used to minimise the risks of unauthorised cargo container swapping and unauthorised commodities access.

Such financial issues happening reveal the vulnerabilities of trade finance models that have not kept pace with rapidly evolving economic challenges exacerbated by the COVID-19 pandemic. SMEs, by their nature, do not have deep reserves or pools of collateral that they can pledge against  the loans they have traditionally sought to give them the liquidity they need.  In the aftermath of financial shocks, it is those SMEs that suffer disproportionately as banks and other lenders carry out portfolio rebalancing exercises. The business model of firms that rely heavily on credit risk insurance against defaults is one that is particularly vulnerable.

Termed the “Digital Transaction and Risk Transformation Engine (DTRTE)”, TradeFlow’s system enables global physical commodity trade for SMEs, with the DTRTE architecture providing the added advantage of superior risk-adjusted returns and capital preservation for investors. The system is also highly complementary to traditional trade finance lending institutions like Banks; TradeFlow does not lend money.

Tom James, CEO of TradeFlow affirms, “TradeFlow strives to innovate and bring digitised solutions to the international trading community that adds value in operational and capital efficiency, transforming risk to enable trade .” John Collis, CRO of TradeFlow adds, “TradeFlow’s mission is to enable SME trade worldwide. When a financial  earthquake hits there may be many casualties, but those numbers are dwarfed by the follow-on losses caused by the problems of getting adequate and timely relief and aid to the needy.  Financial earthquakes remind us of the value of the system we have created. ”

Nations around the world struggle with socio-political challenges, many made worse by the COVID-19 pandemic. Greater economic hardships brought about by higher-risk systems of trade can be prevented through innovations made possible by Digitalisation.

The world’s growing trade finance gap needs to be filled, stably and sustainably , and TradeFlow’s trade solutions can help achieve that to support the everyday flow of goods and money getting to the right places at the right times.