The Kountable Capital Solutions platform bundles a set of funding, credit and trade finance solutions that would generally be out of reach of most SME traders. Plugging into the Kountable platform is a smart way for SMEs to access sophisticated services that are normally reserved for companies of much larger scale.

The credit requirements imposed upon banks by international regulatory accords mean that SME traders often fall outside of the lending standards of traditional financial institutions. Even if available, capital to fund their projects can be expensive and be accompanied by difficult pre-conditions.

Utilizing principles of structured trade finance, we first transform the credit characterization of the trader’s transaction by redirecting the credit risk in the deal away from the trader per se and toward the most credit-worthy party in the trade, which is the end customer. Next, Kountable trades are structured such that our first security in the project is the underlying goods themselves. We take title to the goods onto our own balance sheet. This gives us an advantage over banks, which are constrained from taking title to goods due to capital reserve requirements.

At the same time, banks are very eager to take advantage of the opportunity that our platform provides them to extend financing to a class of customers that currently eludes them. We alleviate many of the difficulties they would face in lending directly to the SME trader. In the process, lending from Kountable’s finance partners is transformed into a simple line item cost for the trader.

Traders benefit further from the suite of services on the Kountable Capital Solutions platform and these services further reduce execution risk which capital providers like. Goods are covered by our insurance. Currency risk is mitigated. They have access to our network of suppliers, logistics providers and clearing services. And an often undervalued benefit our traders receive is the scrutiny to which their project is subjected during our underwriting process, whereby their transactions are strengthened to adhere to international trade standards.

With Kountable Capital Solutions we are able to:

• Source hard currency like dollars and euros from offshore investors
• Match investor preferences to SME traders’ business opportunities to secure the lowest cost of capital
• Work with international banks to design programmatic approaches to global opportunities like the COVID-19 response
• Launch local accounts to segregate customer payments from the SME’s general ledger to give investors peace of mind
• Aggregate the demand of the network to secure institutional currency rates on conversion and design portfolio-level risk management strategies
• Promote the scale of our membership network to DFIs (development finance institutions), EXIM banks, and development banks who typical only allocate capital in the tens or hundreds of millions of dollars
• Leverage local SME traders’ ability to deliver on sustainable development, clean energy projects, improved education, improved healthcare delivery, greater connectivity, and clean water and sanitation

Kountable exists to solve the world’s distribution problem.  Kountable Capital Solutions exists to ensure that the best opportunities are funded from the best sources of capital to create the best possible outcomes. We define the best outcomes as efficient, effective, values-aligned and profitable—because if it’s profitable you get to do it again. Our Capital Solutions partners are looking for quality trades from our members to fund now.