KARACHI: Small Medium Industrial Leasing Estates Pvt Ltd (SMILE) held a meeting with the Ace Control and Expertise Global Pakistan Ltd (ACE) and arranged for practical collateral management financial support for the SMEs in and outside Pakistan on the basis of cash flows for preshipment and post shipment finance.
Zulfikar Thaver chief executive officer (CEO) SMILE welcomed the ACE team and said the sector needed a system of collateral management and it is a dream come true as the SMEs can now obtain finance from leading banks against warehouse receipts at the port of shipment or the destination port or in their own or rented warehouses under the system of expert controlled
collateral management of certified inventory or goods in transit or custody.
Hamid Raza technical support manager ACE said Pakistan’s agriculture commodity sector suffers from a compound problem of a lack of both infrastructure and market structure. The resulting inefficiencies impact all market participants and keep the sector from becoming competitive.
He said on the infrastructure side, there is a lack of warehousing and storage facilities. In the market, there is a lack of standardization, independent verification, collateral management, commodity financing, and transaction data. The result is an opaque and illiquid market where there is a lack of financing, trading opportunity and significant wastage.
At the base of the value chain, farmers are most harmed by wastage, price fluctuations, and an inability to access formal finance. These issues compound to hamper access to formal credit by the SME sector, who can benefit by financing against cash flows.
He said ACE Pakistan is a member company of the ACE Global Group of Companies and provides ACE Global Services to clientele based in Pakistan. ACE Global Group of Companies operates as a leading collateral control institution providing sophisticated collateral control services while using adequate credit support tools relevant in respect of field
warehousing, collateral management, secured distribution, certified inventory control, certified accounts receivables, credit facilitation services and related asset protection, and training and advisory services, all to an international clientele.
From their humble beginning in 1996, today, ACE Global is present in over 40 countries, providing services to over 170 financial institutions, covering commodities valued in excess of USD 10 billion, from grains & oil to metals.
Thaver said: “This system will resolve the access to finance issue of SMEs which can now apply to SMILE who have been appointed as facilitators and enable entrepreneurs to work under the organized controlled system of collateral management of ACE who are on the panel of leading banks.
He said this is an ideal system for the commodities and other exporters, farmers, millers and processors and there is no need for the primary sector to be subdued by the middlemen cartel.