How It Works – MerchantSponsor

Bringing Invoice
Financing Into
The Light

Built for Traders and Retail Investors

The What & Why of Invoice Financing

Independent traders and small trading companies are willingly paying exorbitant interest rates to secure short-term loans they need to import their wholesale goods.

This has led to a market of over $5B for short term loans based on Letters of Credit, with most of it in ‘grey area’.

MerchantSponsor revolutionizes trade finance by:

1. How does invoice financing work on MerchantSponsor?

Traders submit their unpaid invoices on the platform (for example, to import or export a shipment of products to a reseller). Investors review and fund selected invoices. Once customers pay, investors receive returns, and traders get immediate cash.

2. How can I see or make a deal that is legitimate?

Every Deal created has a Letter of Credit or Invoice attached to it, which can then be verified by investors so they may begin the process of submitting an offer to finance. Soon, we’ll launch a Blockchain for this data.

3. Is MerchantSponsor open to individual investors?

Absolutely! Our platform welcomes both individual investors and institutions, creating an inclusive marketplace that benefits traders and investors alike.

Please note all investing comes with risk, and no content on this platform is intended as any kind of investment advice.

4. How does MerchantSponsor ensure data privacy?

We employ state-of-the-art encryption and decentralized storage on the blockchain*, ensuring that sensitive data remains secure and accessible only to authorized parties.
* Blockchain storage coming soon

The MerchantSponsor Initiative

Funding With Asset Security

We allow traders to register their deals to raise capital, and retail investors to invest using the platform.

Traders gain access to cost-effective financing with competitive interest rates, and retail investors can diversify their portfolio with a wealth of new secure and transparent investment opportunities.

Let’s democratize the $3.9tn trade financing market by giving everyone access to new opportunities within Canada and abroad.

Listing your Deal on the marketplace remains free. For now, we collect a 2% fee from Lenders and Traders upon Deal Success. Optional nominal-fee audits available on a case-by-case basis.

Import/export trading business manager with 20+ years experience in a variety of diversified import-substitute concerns in different sectors including automibles, textiles, commodities and more.