Cotecna’s mission is to assist Borrowers and Lenders in setting-up cost-effective, yet solid and Basel II-compliant financing structures. We achieve this by providing Lenders with tools to verify that disbursements are applied in conformity with the purpose of the credit.

Cotecna is flexible in its ability to perform specialized monitoring of inventories, growing crops, goods in process, cargo in transit, loading or discharging operations, etc., and seamlessly report the position of the collateral to the financier throughout the transaction lifecycle.

Cotecna’s Trade Finance package addresses several Basel II requirements:

• Consolidation of the “legal control” (Annex 6/Table 4), further enhanced by Cotecna’s handling and custody of local title, transportation or other documents;
• “Knowledge of the trade process” through its on-site verifications;
• Realization of the collateral’s value in a “reasonable time frame” (§ 509), facilitated by the timely knowledge of any covenant breach with regards to the security provided by Cotecna;
• “Physical inspection” requirements (§ 522);
• Insurance (§ 510): a key complement to the security package. If it is absent or unsatisfactory, Cotecna can provide an extremely comprehensive cover, including theft and misappropriation, issued by top-rated underwriters. 

Key benefits

• By enhancing Lenders’ control over their transactions, the service results in more favourable loan classifications, hence in easier and/or cheaper financing.
• Simplicity of the contractual documentation, allowing a quick implementation and low legal costs.
• Cost effective flat fees.

• Unrivalled information technology such as Vestalis™, Ceres or E-Dox™.