Episode 12: Commodity Trading: The booming business in the region

[@elvisrashirai7807]

51:53 This awesome and fascinating Nas. This is an area I have always wanted to venture into. Happy to hear that you are setting up a platform to work with individual traders. Would you kindly advise once this is up and running? Thank you.

[@faisalali-lc2zg]

Amazing Nas , keep up the great work 👍👍

[@Khalid-mz7yn]

just watched your interview Furqan and I have to say, am incredibly proud of you! and you handled every question with such confidence and grace...keep shining and inspiring others with your brilliance!

[@MK_3728]

I am always curious what happens when for instance sellers does not honor his payment terms after you have done shipping or the cargo lost gets washed away from the sea?

[@NoName-ny1bt]

You will try to assess creditworthiness of the other party through internal process, if you can’t then you’d buy insurance for credit risk (when other party doesn’t pay), then that credit risk is on the banks balance sheet, it’s their problem. However, you will chip away at your already slim profit margin. But certainly insure your $50-$100m+ cargo for operational risk (oil spill, piracy threats, damages etc)

[@johnsonpark3096]

Most times, sellers are required to put up a performance bond, usually 2%. There are various banking instruments in places through the SWIFT network to guarantee both sides. If the seller fails to CIF (cost, insurance, and freight) in the set time, the 2% PB will automatically be released to the buyer. This will cover the buyer's interest costs.