Harbor Trade Credit works with importers, manufacturers, wholesalers, distributors and brands providing trade finance programs to create liquidity throughout the supply chain.
|Company Name||Harbor Trade Credit, LLC|
|Asset Type||Trade Finance Recievables|
|Types of Advances||Trade Financing|
|MIP 6 Application||[HTC-DROP] MIP6 Application: Harbor Trade Credit DROP: Short Term Trade Receivables - Collateral Onboarding Applications (MIP6) - The Maker Forum|
|Tinlake Page||Pool Overview: Harbor Trade Credit Series 2 | Tinlake | Centrifuge|
(note: this questionnaire has not been altered. Answers come directly from the Asset Originator)
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.
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).
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.
What is the average collateral asset size?
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%.
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.
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.
Are there any further disclosures that interested party should be aware of?