Impact

Finance

More efficient and scalable trade and impact finance solutions to leverage the full commercial and environmental benefits of the Sourcery Solution.

Transparency, traceability and verified impact require commitment and investment to overcome the barriers that exist in traditional commodity trade—such as volatility, inventory risks, high-interest working capital and coverage shortfalls, Sourcery works with its Partners to develop fit-for-purpose finance solutions with their financial institutions, private capital and family offices to overcome these barriers to accelerate the transformation of trade for good.

Solutions

Grower Finance

Growers can access working capital and capex finance solutions for off-take, processing, short-term storage, logistics and on-farm investments that transform trade for good.

    • Grower Reverse Factoring

    • Dynamic Discounting

    • Structured Finance

    • CapEx Finance

Trade Finance

Access to traditional invoice financing and reverse factoring that enables manufactures, traders and brands to lleverage the full commercial benefits the Sourcery.

    • Grower Reverse Factoring

    • Dynamic Discounting

    Trade finance is available to spinners, traders, fabric mills and select Assembly/CMT

Transformation Fund

The Sourcery Transformation Fund includes direct philanthropic and programme related investments for capacity building, extension services that accelerate impact among growers and grower communities.

    • Philanthropy (direct)

    • Programme Related Investments (PRIs)

    • Data License Commissions*

    Approx. 5% of all data license fees are contributed to the Transformation Fund, which supports our Partners.

Transforming Trade Finance for Good.

Traditional supplier finance provides vast amounts of low cost capital for end users and their direct vendors, where long-term relationships, contractual guarantees and trade insurance de-risk financial institutions and corporates.

However, a typical t-shirt (see illustration) requires as much as three times the final finished goods value to produce when factoring in fibre, yarn and fabric that goes into a finished good.

Through our deep engagement with growers, manufacturers, traders and brands, Sourcery has identified that as much as 15 percent of a finished goods costs can be attributed to high-interest working capital and lack of access to capital upstream, among growers, manufacturers and traders who are growing, processing, storing and manufacturing the fibre, yarn and fabric.

15 percent may seem inconsequential, however using the illustration picture here, that’s $56 thousand USD attributed to the final good costs derived from interest alone, enough to ensure 160 farmers can get a $0.65/kg (0.29/pound USD) incentive (or premium) for their commitment to commercial, social and environmental excellence in trade—this is what it means to transform trade for good.

Since its founding, Sourcery has worked with its Partners and forward thinking financial institutions to develop and build fit-for-purpose finance facilities to unlock capital that is more transparent, efficient and impactful—benefitting everyone from grower to consumer.

Finance Partners

On behalf of our Partners, the Sourcery team has worked alongside the below financial institutions to co-develop fit-for-purpose impact finance solutions and facilities that accelerate the transformation of trade for good—benefitting everyone from grower to consumer.

If you would like your financial institution to join Sourcery as a FInance Partner, and use our proprietary structure finance solutions that de-risk underwriting and enable impact finance at scale, please let us know and we will connect with them to ensure you too can benefit from the transformation of trade for good.