Demurrage financing uses financial transactions well-established in many industries, particularly international trade, whereby a business sells its accounts receivable to a financing company, in order to meet its immediate cash demands.
C Dem Finance Ltd has recently been established in London and is the first company to provide comprehensive funding solutions to shipowners against their demurrage receivables. Having pioneered the concept and worked through various funding structures, C Dem Finance has refined and developed a new structure which provides shipowners with efficient funding, uninterrupted claims handling and confidentiality.
The issue of slow payment of claims has been a problem for the industry for some time and can cause cash-flow problems as well as commercial strain for ship operators.
Some well-known shipping and trading companies have approached C Dem Finance for assistance in this respect, and the resulting funding product meets owners’ financing as well as operational requirements. For example, a large owner with annual claims of around USD 100m, could receive funding of USD 20m within a couple of months. This product provides significant upfront liquidity, improves the owner’s working capital, and should not impact financing agreements with existing lenders.