How to Fund a Procurement Deal With No Cash Upfront
How to Fund a Procurement Deal With No Cash Upfront
Yes — if the deal is real. Financely structures SBLC and DLC-backed transactions that allow you to secure inventory or production without paying 100% upfront.
If you’ve secured a government supply contract, or a large buyer is ready to purchase—but your supplier requires upfront payment—you’re stuck. You have a deal, but no liquidity to execute. Financely helps qualified companies structure procurement deals using credit-backed instruments like SBLCs and DLCs, so the transaction can move forward without advance cash.
The Procurement Problem
Most buyers in emerging markets don’t want to pay upfront. Most suppliers won’t ship without prepayment or a guarantee. That standoff kills deals every day—unless you know how to bridge it.
How We Fund Procurement Without Cash
We use real trade instruments to unlock supply, production, or inventory:
- Standby Letter of Credit (SBLC): Issued to the supplier as a performance guarantee, often covering 100% of contract value but backed by partial collateral
- Documentary Letter of Credit (DLC): Issued to release payment upon document submission (bill of lading, invoice, etc.) — protecting both buyer and seller
- Back-to-back structure: When the buyer receives a DLC and needs to issue another to their supplier, we underwrite and coordinate both sides
Use Case: Supplying Medical Equipment to a Government Buyer
You’re awarded a contract to deliver $2 million in medical kits to a state health agency. They’ll pay 100% on delivery, but your supplier wants a 50% deposit before producing.
We structure an SBLC to the supplier, underwritten against the contract. In some cases, we issue the SBLC with only 25–30% cash collateral, or structure a bridge note to fill the gap. The supplier produces, ships, and gets paid — and you get paid by your buyer. No capital-intensive delays.
What Makes the Deal Work
- Signed contract or PO from a known buyer
- Supplier willing to accept SBLC or DLC
- Margin that covers costs once released
- Ability to deliver — logistically and legally
We Support These Sectors
- Government procurement (health, logistics, defense)
- Fertilizer, chemicals, and agri inputs
- Machinery, spare parts, and construction materials
- Power equipment and industrial supply
- Fast-moving consumer goods with locked buyers
We Work With Real Institutions
We issue instruments through accounts with global banks (e.g. HSBC, Citi, Bank of China, JPMorgan), governed by ISP98 or URDG. We never offer “bullet trades” or monetization schemes. Just structured execution with real paperwork.
Need to Fund a Procurement Deal Without Fronting Cash?
We underwrite real transactions and help you secure SBLC or DLC-backed funding to get your contract fulfilled. No cash upfront? No problem — if the deal is real.
Submit Your Deal Book a 1:1 CallGet 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.
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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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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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 RequestOnce 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.
