Case study
Breaking from tradition: ETG’s transition to flexible digital working capital solutions
Finverity Team
The Challenge
ETG (Export Trading Group) is a leading agricultural conglomerate with a vertically integrated supply chain spanning five continents, 48 countries (29 in Africa), and a diverse portfolio of soft commodities trading, manufacturing, energy and more.
In the fast-paced and competitive commodities sector, ETG relies on flexible and robust working capital solutions to support its extensive cross-border operations.
That said, traditional trade financing solutions often impose restrictive conditions that can stifle growth and limit operational agility. Recognising these challenges, Finverity, a leading Supply Chain Finance fintech, delivered a tailored supply chain finance (SCF) solution that addresses ETG’s immediate needs and empowers them to scale its operations seamlessly.
For a commodities trading company like ETG, access to working capital is always critical. Despite securing over $1 billion in credit lines from traditional lenders, the conglomerate is constantly seeking additional funding to drive growth across its many markets and business units.
Traditional trade financing structures present two critical challenges for ETG:
Rigidity of structured trade finance: Traditional financing products are often highly structured - relying on collateral or trade documents, which limits a trader’s ability to draw capital in line with their highest needs and respond quickly to market changes.
Back-to-back arrangements: Banks typically require funds to be released against confirmed sales, which restricts ETG’s ability to finance purchases ahead of securing sales contracts.
Both challenges limit ETG’s cashflow management efficiency and operational flexibility to capitalise on new market opportunities quickly. Both are essential in a commodities sector where timing and efficiency can be everything.
The Solution
Finverity stepped in to address these challenges with a tailored SCF solution offered by Finverity Capital, designed to meet ETG’s unique requirements.
After thoroughly researching the conglomerate, Finverity structured, executed, and operates a flexible Payables Extension product that enables ETG to extend payment terms for its suppliers, including a pre-shipment component.
Unlike typical trade financing, this facility allows ETG to manage its cash flow without relying on a trade document or the immediate need to link financing to confirmed sales contracts.
This new arrangement is made all the easier thanks to Finverity’s state-of-the-art digital platform, which streamlines the entire financing process and reduces the need for heavy flow of physical supporting documents.
The platform, FinverityOS, empowers ETG to manage its financing from a single, user-friendly dashboard, drawing funding with a few clicks and automating previously cumbersome processes like counterparty onboarding and supporting document upload. This automation not only saves time but reduces the risk of human error, enhancing overall operational efficiency.
The platform’s real-time monitoring capabilities also give ETG complete visibility over its SCF programme, in order to make quick adjustments and scale the facility as needed. This level of control and transparency is simply unattainable with traditional banking relationships.
ETG & ESG
For a conglomerate like ETG, which operates across diverse and developing markets, especially in Africa, a strong commitment to ESG is not only a moral obligation but a strategic imperative.
By aligning its operations with the UN's Sustainable Development Goals, ETG can drive a significant positive impact in rural economies, foster sustainable agricultural practices, and ensure that its supply chains are resilient and ethically sound.
The integration of flexible working capital solutions, like those provided by Finverity, further supports ETG's ESG objectives by enabling the company to increase the sourcing of local agricultural goods, support smallholder farmers, and enhance its supply chain transparency.
This focus on ESG not only helps ETG maintain a competitive edge in the global market but also ensures that its growth contributes to the broader goals of environmental sustainability, social equity, and good governance.
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What’s next?
Looking ahead, ETG plans to expand on its partnership with Finverity by increasing the limit of the existing SCF facility and bringing additional funders onboard via Finverity Capital.
This expansion doesn’t only expand ETG’s access to more comprehensive working capital solutions but diversifies its funding sources, reducing its reliance on any single lender. As Finverity continues to grow its share of ETG’s overall financing portfolio, the aim is to introduce more efficiency and greater flexibility into the company’s operations.
By benefiting from flexible and digital funding solutions, ETG is well-positioned to take advantage of market opportunities with greater agility and efficiency - scaling its operations to new heights.
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