EF’s new financing economy also allows companies to be financed based on the credit risk of their customers. For example, when we know that a supplier is due to receive a payment from its customer, we can neutralize the commercial risk and stay with a credit risk that is based on the customer’s rating.

One of the most important advantages of EF’s Real Time Information Financing is that it can make financing a successful mid-size business possible without a bank branch that is located at geographical proximity to the business.

It means that we open for investors, who are not local banks, opportunities to invest in new a class of assets that include diversified portfolio of SMEs or high rated corporations. In parallel, it also means we open the door for businesses that are currently financed only by their local banks, to be financed by new investors (for example institutional or private investors) under better rates and terms.

Also see Efficient Finance Innovation Investments over the Risk-Return Curve