3.5. Financing Opportunities

The global trade ecosystem can have various financial needs for both buyers and sellers. The Coimex team is aiming to introduce a pioneering service where these financial needs can be met through crowdfunding, allowing third parties to fund trade deals in the form of Exim Tokens. This innovative approach will not fund the companies directly, but the trade deals themselves.

The process of international trade requires capital investment to make goods ready for export. For a seller, there are multiple costs involved, ranging from general overheads to product-specific and logistical expenses. Crowdfunding through Coimex could provide the needed funds in Exim Tokens to cover these costs, which would enable the transaction to proceed.

Let’s have a look at some examples of costs that could be financed through this model:

Freight Financing: Freight charges can sometimes be as high as half the product's price, which can be burdensome for a seller who hasn't received any payment upfront. Coimex could create an ecosystem with regional shipping companies where, in exchange for financing the freight costs, the shipping company would receive Exim Tokens at a favorable rate. This arrangement benefits both the shipper and the seller.

Manufacturing & Supply Financing: This service resembles external trade credit provided by banks. It allows the financing needs of the seller to be met by third parties through crowdfunding in Exim Tokens. The investor essentially underwrites the seller's risk. For example, a seller requiring $5,000 could be supported by an investor purchasing Exim Tokens worth $5,500.

There could also be an association with a Third-Party Finance Institution to facilitate this financing, and the specifics are being developed. The finance provider would set the profit rate in agreement with the financed party, which could range from Libor + 4% to 12%.

In addition to these models, Coimex is considering incorporating a Sharia-compliant profit-sharing system into its platform. This model would replace the classical conventional fixed interest rate systems, aligning with Sharia principles. It is envisaged as part of our roadmap, although specific details are yet to be finalized. In this proposed system, companies would share a portion of their generated profits over a specified period, offering a unique, ethical alternative to traditional financing methods.

For the sellers, the advantages are more clear: they can secure their supply chain and manufacturing process without the immediate need for cash. For buyers, in the future, potential models will be developed, such as Third-Party Finance Institutions taking on the buyer's risk in return for a potential doubled return on investment.

The crowdfunding mechanism for these financial opportunities will be detailed further. The Exim Token's role is crucial, not only as a medium of exchange but also as an instrument for securing and growing international trade operations, providing both liquidity and stability within the Coimex ecosystem.