By John Reynolds on Tuesday 4 February 2020
PrimaDollar CEO says compliance will lead to lower funding costs.
Emerging trade fintech PrimaDollar has received key European compliance for its main funding programme, just hours before the UK formally left the EU.
The UK-based PrimaDollar has been granted STS compliance—Simplicity, Transparency and Standardisation—for its Exporter Finance programme under European securitisation regulation.
PrimaDollar says it will lead to lower funding costs which it can pass on to its clients.
PrimaDollar has clients in more than 30 countries and eight offices spread across three continents.
It supports SME exporters in emerging markets with limited access to finance but creditworthy international buyers.
PrimaDollar said it can generate "high quality, credit-insured receivables which are ideal for asset-based financing."
Tim Nicolle, (pictured), Group CEO of PrimaDollar said: “STS compliance is very important to our business. It means that our European and UK bank investors can reduce the amount of regulatory capital allocated against finance provided to us; this leads directly to lower funding costs that we can pass on to our clients."
“We are already the lowest cost provider of non-bank trade finance globally, and this will further cement our market-leading position."
"There is no certainty available as to how the regulatory landscape will evolve post-Brexit. This meant that we had to accelerate our plans to deliver the certification. Now in place, the certification will continue to benefit our lenders across the EU, as well as in the UK going forward.”