Digitization & Scalability
Oahu Capital and partners offer efficient electronically digitized solutions on managing physical commodity flow and hedging price risk capabilities.
- Fast review with electronic deal capture and data processing
- Efficient process on Approval, Document issuance and Acceptance
- Automated Supply & Purchase Agreement Creation
- Digital Issuance and signing of contracts
- Straight through processing of trade data into Letters of Credit application
- E-presentation of ownership documents (Bill of Lading)
- E-presentation of Certificates of Origin
- Title Transfer and Final Payment Processing
Below is a table listing general risk mitigation taken on by Oahu Capital, its partners to mitigate performance risks associated with this type of financing.
| Concentration Risk | Portfolio Risk Limits – Commodity, Counterpart, Country |
| Geographical | Destination Risk Assessments & Monitoring |
| Buyer Payment Default |
Cargo resold into market and initial payment from buyer used to cover expense |
| Operational Default |
1. Delivery dates/terms renegotiated or |
| Credit |
Limited credit risk, we do not lend money, we take cargo ownership in transit but as a trade receivable we can still pursue balance sheet of buyer |
| Price Volatility | Pre-agreed pricing and up to 30% cargo value initial payment protection |
| Damaged/Loss of Goods | Every cargo fully insured via Lloyds of London |
| Quality and Quantity | Oahu Capital & partners select third party Q&Q inspectors |
| FX, Interest Rate Risk |
US$ Fund and all exposure in US$ based commodities; Rates rise when interest rates rise |
| Legal |
Legal risk via Errors, Omissions & Fraud controlled via our digital secure platform and standardised documentation and process flows |
Need some help? Ask our specialists and find alternatives towards managing your physical risk exposure. Complete our form to see how your business would qualify.
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