[Community Introduction] Harbor Trade Credit

About

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Harbor Trade Credit works with importers, manufacturers, wholesalers, distributors and brands providing trade finance programs to create liquidity throughout the supply chain.

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Company Name Harbor Trade Credit, LLC
Website harbortradecredit.com
Asset Type Trade Finance Recievables
Types of Advances Trade Financing
MIP 6 Application https://forum.makerdao.com/t/htc-drop-mip6-application-harbor-trade-credit-drop-short-term-trade-receivables/3502
Pool Summary [Summary/Discussion] Harbor Trade Credit Series 2
Tinlake Page https://tinlake.centrifuge.io/pool/harbor-trade-2

Questionnaire

(note: this questionnaire has not been altered. Answers come directly from the Asset Originator)

Company

Please give a brief history of the company and, if applicable, group structure.

Founded in May 2018, Harbor is a FinTech firm focusing on Supply Chain Finance (SCF) and working capital solutions to improve the cash conversion cycle. Harbor’s programs allow for early payments to suppliers so that buyers can optimize their own liquidity through trade credit. These programs are administered on Harbor’s proprietary platform which not only injects liquidity into the supply chain, but it allows for better vendor and procurement management.

Organization

How many full-time equivalent team members do you have and what do they do?

Harbor currently has 4 full time staff and 5 part time contractors. Full time staff includes Business Development, product & technology development, structuring and deal execution. Part time staff are DevOps, sales and marketing.

Have you sold equity? Are you venture funded, if so please describe the previous rounds, money invested, and lead investors.

No. Harbor has been capitalized by its founder, Bryan Maloney.

Is your business sustainably profitable or well funded with sufficient cash runway?

Yes. Our projections/budget give us a conservative runway of 12 months which assumes zero revenue (cash burn).

Asset Details

Describe the asset collateral that you seek to finance.

The funding vehicle (SPV) under this SCF program will purchase short term trade receivables from Harbor Trade Credit, payable by Buyers at a 60-day maturity. Harbor will pay the cost of goods directly to the supplier upon shipment of the good. HTC’s solution allows the Buyer to have an extended payment period while financing the supplier earlier in the process.

Describe your previous track record related to this business proposal.

No answer

What is the average collateral asset size?

~250K

Describe the risk of the assets you are proposing. How do you evaluate and manage that risk?

HTC works with Buyers to finance Suppliers. As a result, HTC minimizes Supplier invoice fraud by aligning with the Buyer. HTC has Buyer default risk, which is mitigated by the length of relationship between Buyer and Supplier as well as HTC’s credit underwriting process on buyer counterparty risk. The historical industry average buyer default rate is less than 1%.

Disclosures

Please describe any conflicts of interest or potential conflicts of interest or any relationship that could compromise or be viewed to compromise the decision making of the company.

None

Are there or have there in the last 10 years, been any criminal, civil, regulatory or administrative proceedings against (i) the Company or any of its principals or (ii) the product in any similar such matters including reparations, arbitrations, and negotiated settlements? If so, please describe.

None

Are there any further disclosures that interested party should be aware of?

None


7 Likes

To our investors:

The first maturities under our Supply Chain Finance program with Snakebyte have been settled within term.

We expect to make distributions to investors on October 28th.

Thank you for your support and we look forward to working together on a revolving program with Snakebyte and others. We have several interesting programs in the pipeline.

Feel free to contact me directly with any questions or comments.

Bryan Maloney, CEO Harbor
B.maloney@harbortradecredit.com

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Dear Investors,

We regularly create content and post across multiple channels and our website. Check out our new section to learn more about Harbor, trade finance and trends in international trade.

https://www.linkedin.com/company/harbor-trade-credit

Bryan Maloney

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Dear Investors,

We had a successful launch of HTC2 last week, which was oversubscribed. We will be opening the pool back up for investment later this week to finance additional Snakebyte procurement. Here is a sneak peak of the Honeycomb Aeronautical Bravo Throttle Quadrant in production and testing.

https://vimeo.com/497335802/a06629cb33

Regards,

Bryan Maloney, CEO Harbor
B.maloney@harbortradecredit.com

1 Like

Harbor Investors,

As we approach the 2nd Quarter of the year, I am reaching out to provide you with some details on our projections for next quarter.

First of all, I want to thank you all for your interest and investment in Harbor’s Supply Chain Finance. We have had a huge response in Q1 and the pool is consistently oversubscribed.

We expect to open the pool for investment over the next two weeks with a target pool size of $3,000,000 USD equivalent as we originate more assets for the fund. Please feel free to reach out to investors@harbortradecredit.com with any questions related to investing in HTC2.

Bryan Maloney, CEO

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Hi Bryan,

Do we have any expected date for pool to open? I assume once it opens, it will be non-over subscribed.

Thanks
Regards
Pats

We expect to open the pool later this week or possibly Monday/Tuesday of next week. The pool will be oversubscribed once we reach our target but as we originate assets we will periodically open the pool for new investment.

Bryan Maloney

1 Like

Thanks for your response. Looking forward to it.

Regards
Pats

It says in the executive summary that “Both Harbor and Centrifuge will purchase a portion of the TIN Tokens to demonstrate their confidence in the asset pool and to act as a buffer against losses to investors in the DROP Tokens.” How much have Harbor and Centrifuge committed to HTC Series 2 respectively?