New Lenders Take a Shine to Ignored Diamond Industry

The video discusses the exit of banks from the diamond lending business due to declining prices and lack of transparency in the midstream sector. A new risk-mitigated framework is introduced, focusing on collateral rather than cash flow, with higher interest rates. The framework offers additional marketing solutions, making it attractive to midstream companies even when commodity prices recover. Funding is sourced from specialty finance companies, with potential future collaborations with banks.

What is one of the main reasons banks are pulling out of the diamond lending business?

• High profitability in the sector

• Lack of transparency and non-conformance to accounting standards

• Excessive government subsidies

• Increased demand for diamonds

What is the primary focus of the new risk-mitigated framework?

• Lending based on collateral

• Lending based on market trends

• Lending based on future profits

• Lending based on cash flow

How does the interest rate charged by the company compare to traditional banks?

• It is the same as traditional banks

• It varies depending on the client

• It is higher than traditional banks

• It is lower than traditional banks

What additional service does the company provide to its borrowers?

• Interest-free loans

• Free diamond appraisals

• Assisted marketing solutions

• Guaranteed buyback of diamonds

From whom did the company raise $105 billion?

• Private investors

• Government grants

• Specialty finance companies

• Traditional banks