Best Trade Finance Boutique: Falcon Trade Corporation

Runner-up: Texel Finance
Commended: FIMBank
2007 Winner: Falcon Trade Corporation

Ten year’s ago, Falcon Trade Corporation was a fledgling start-up company with a young and ambitious founder, a good idea and a handful of clients – and not much else. Today, it is closing in on an annual turnover of $1bn, with its sights set on achieving $5bn within the next three years. Meanwhile, its equally ambitious former CFO, Will Nagle – an industry veteran who joined forces with Alzarka in 2005 – has been elevated to the role of CEO, with Alzarka continuing to provide strategic direction in his role as chairman.

“We are rapidly maturing as a company, to the point where the description ‘boutique’ is beginning to look a little quaint, although I mean that only in the sense of scale – we are furiously proud of our heritage as an independent trade services specialist,” says Nagle.

“In the past year we have recorded an annual increase in turnover of more than 50%, adding to our excellent record of 40%-plus year-on-year growth since 2002. The turnover of the company will exceed $1bn in 2008 and we will sustain these growth levels in 2009 and beyond – so reaching in excess of $3bn turnover in the short term and exceeding this in the years beyond.”

This will be achieved following the company’s expansion into particular key markets during the course of the last year. “Over the past year Falcon has moved its headquarters to Dubai, reinvigorated its position in Saudi Arabia, established a strong presence in Malaysia and Indonesia, and opened offices in Istanbul and Sao Paulo, Brazil. We have also strengthened all our operational and administrative support areas – aimed at further stimulating sustainable growth,” says Nagle.

“We have seen an exponential growth in business over the past five years,” says Alzarka, “and we expect this to continue in the years to come. In terms of staff, we have grown by 50% within 12 months – taking us now to 30 people.”

Indeed, in the next 12 months, says Alzarka, the company will continue to look for markets that suit Falcon’s specialist approach. “Our aim is to accommodate companies looking for bespoke solutions,” he adds. “And the number of markets where this is applicable is growing – representing something of an emerging market in its own right.”

While the credit crunch may have stimulated business for trade finance professionals, customers are more demanding then ever, believes Nagle. “Innovation, as well as tailoring solutions to client needs, will be the key to success. The days of off-the-shelf solutions that were either a poor fit or – more commonly – rejected as unsuitable are over,” he says.

“Highly structured solutions, developed by the world’s most sophisticated companies, have now permeated down the credit ladder. Indeed, to the point where nearly all trading entities should be able to benefit from the cash flow and working-capital benefits of well applied trade-services solutions.

“If you are not benefiting in this way, it may not be that you don’t qualify – or more likely that you are not being the alerted to the solutions available.”

During the next 12 months, Nagle expects the company to continue profiting from the aftermath of the credit crunch and the continuing economic uncertainty in many parts of the world. “Trade services prosper from heightened risk scenarios, just as the financial efficiencies available from trade flows become more important in times of restricted liquidity,” says Nagle.

Will Nagle, Falcon Trade Corporation