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Why trade finance in Central Asia

Why the fund focuses on Central Asia, how short-term trade lending works, and why high yield arises specifically here.

Dash’s strategy is short-term secured trade lending to small and medium businesses in Central Asia: Kazakhstan, Uzbekistan, Kyrgyzstan and adjacent markets. Here’s why this, and why here.

What trade finance is

It’s financing a specific commercial transaction: a business buys goods, sells them, and repays the loan out of the proceeds. The cycle is short — weeks, not years. The loan is backed by the goods, the contract, and the deal’s cash flow.

The short cycle matters: capital turns over quickly, and the manager re-underwrites the borrower regularly rather than freezing money for years blindly.

Why Central Asia

The region has a structural situation: business demand for working capital is high, while bank supply is limited.

  • Small and medium businesses are often refused by banks or required to pledge real estate.
  • Imports, agricultural exports, and wholesale trade grow faster than banks are willing to finance them.
  • For access to fast capital, businesses are willing to pay a meaningful rate.

This gap between demand and supply is the source of the yield.

How borrowers are selected

Yield without risk selection is a casino. So every borrower is reviewed before any capital is deployed:

  • bank statements and account turnover;
  • tax filings;
  • the history of specific trade deals and counterparties.

Only vetted companies with clear, repeating turnover are financed.

Examples from the portfolio

Anonymized examples of current borrowers:

  • Kazakhstan — food & events: a banquet venue and food supply under public procurement.
  • Kyrgyzstan — import & wholesale: consumer goods from Türkiye and construction materials.
  • Uzbekistan — agri-export: fresh fruit and vegetable exports to the EU.
  • China — GPU distribution: reselling graphics cards to retail with inventory turnover under 30 days.

Returns are targets and not guaranteed. Investments are illiquid and carry the risk of capital loss; currency and country risks may apply. This material is informational and is not an offer or investment advice.

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