How Financely Helps You Structure and Distribute Trade Finance Deals in Under 72 Hours

Trade Finance: What It Is, How It Works, and Why It Matters

Trade Finance

Trade finance is the lifeline of global commerce.
Learn what it is, how it works, and how companies are using it to fund cross-border deals in days — not months.

Trade finance refers to the financial structures that facilitate and secure international transactions. From letters of credit and guarantees to deferred payment instruments and SPVs, trade finance allows buyers and sellers to execute deals with confidence — even when they're separated by oceans and currencies.

What Is Trade Finance?

At its core, trade finance provides funding and payment assurance for importers, exporters, and intermediaries. It removes the need for prepayment or credit exposure, and allows both sides of a transaction to move on schedule.

Why Trade Finance Exists

Global trade is built on timelines, trust, and third-party risk. Buyers want to delay payment until goods arrive. Sellers want assurance before shipping. Trade finance bridges that mismatch by introducing verified financial instruments that remove uncertainty from both sides.

Who Uses Trade Finance?

  • Importers purchasing machinery, raw materials, or inventory
  • Exporters shipping goods internationally on deferred terms
  • Commodity traders brokering between multiple jurisdictions
  • Project sponsors sourcing equipment, construction, or EPC contracts
  • Private lenders and institutional investors looking for structured, collateral-backed exposure

Types of Trade Finance Instruments

  • Documentary Letter of Credit (DLC): Ensures the seller is paid when compliant documents are submitted
  • Standby Letter of Credit (SBLC): Acts as a guarantee of performance or repayment
  • UPAS / UPAU LC: Allows immediate supplier payment while buyer settles later
  • Bank Guarantee: Used to secure bid, advance, or payment obligations
  • Performance Bond: Guarantees the delivery of a service, project, or contract
  • Forfaiting: Converts future export receivables into cash through discounting

How Trade Finance Works (Step by Step)

  1. Buyer and seller agree on terms
  2. Buyer (or Financely) arranges an LC or other instrument
  3. Seller ships goods and submits documents
  4. Bank or issuing party confirms and releases funds
  5. Buyer repays lender or issuing institution as per agreed terms

What Are the Benefits?

  • Reduces counterparty risk
  • Improves working capital efficiency
  • Unlocks funding even in riskier jurisdictions
  • Creates transparency and confidence across supply chains
  • Gives buyers time to pay without hurting suppliers

How to Access Trade Finance

Historically, only large corporates could access trade finance through their banks. But now, platforms like Financely allow qualified businesses to structure deals and secure LC issuance without needing long-term bank relationships. You can learn more here: https://www.financely-group.com/trade-finance-transaction-structuring

Top Resources in Global Trade Finance

Organization Description
iccwbo.org ICC sets the global standards for letters of credit and Incoterms through UCP 600.
wto.org WTO governs international trade rules and customs frameworks.
ifc.org IFC provides trade support and guarantees for deals in emerging markets.
swift.com SWIFT is the secure messaging system behind all LC and SBLC transmissions.
hsbc.com HSBC is one of the top global LC issuers for both exporters and project sponsors.
sc.com Standard Chartered leads in sustainable, cross-border, and MENA-based trade issuance.
itfa.org ITFA promotes secondary trade risk distribution, forfaiting, and deal structuring.
forfaiting.com London Forfaiting Company specializes in receivables financing and non-recourse discounting.
trafigura.com Trafigura is one of the world’s largest traders, leveraging sophisticated trade finance daily.

Need Trade Finance for a Deal?

We help importers, exporters, and project sponsors secure letters of credit, guarantees, and trade instruments — structured and issued in as little as 72 hours.

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Trade Finance Is the Backbone of Global Business

Every serious transaction — from crude oil to medical equipment — depends on structure. Trade finance lets you close cross-border deals without taking unnecessary risks. At Financely, we give you access to the tools and networks to get it done, fast.

Get Started With Us

Submit Your Deal & Receive a Proposal Within 1-3 Working Days

Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.


All submissions are promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.

Express Application Submit Your Deal
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Request a Proposal / Submit a Deal

Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.

Trade Finance

Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.

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Project Finance

Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.

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Acquisitions

Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.

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For Banks

Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.

Submit a Request

Once we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.

Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.

Still Have Questions? Schedule a Consultation

If you still have questions after visiting our FAQ and Procedure pages, we invite you to book a paid consultation for personalized guidance. A $250 USD fee applies per session.