Structured Trade & Commodity Finance

If you're a business looking to enter or expand in the international trade market with an annual trade volume above US$10 million, our specialized financing solutions are designed just for you. Our services provide the necessary tools and support to ensure your success in global trade.

With our Structured Trade & Commodity Finance services, you'll transform from a novice to a confident trader equipped with robust financial backing and risk management strategies.

We'll guide you through every step, ensuring your business has the capital, compliance, and connections needed to scale your trading operations.

How It Works

Full Scope Trade Finance Solution

Deal Evaluation, Securitization, Distribution & Funding

Before partnering with us, your business might be struggling with limited trading experience, facing a significant trade finance gap, and encountering difficulties in securing funding for deals, especially in regions where financing is scarce.

Our Structured Trade & Commodity Finance service transforms your business by providing full capital raising support, including deal analysis, risk mitigation, securitization, and legal compliance.

We engage credit rating agencies, set up SPVs, introduce you to banks for revolving credit facilities, and manage the distribution process through qualified Book Running Lead Managers (BRLMs).

After our intervention, you'll have a ready-to-trade entity with robust banking and investor connections, enabling you to secure ongoing debt and equity capital as your business grows, bridging the trade finance gap and ensuring your deals are fully funded even in challenging markets.

1. Evaluation

2. Securitization

3. Distribution

4. Funding

Process & Fees

Start by requesting a proposal or booking a consultation to discuss your business needs. Once you sign the proposal and pay the $175,000 USD retainer fee, we conduct a deal analysis and feasibility study.

We then develop risk mitigation strategies and structure your trade finance deal. Engaging a credit rating agency and a Book Running Lead Manager (BRLM), we prepare and distribute your offering, securing investor commitments.

After ensuring legal and regulatory compliance, we execute the deal, establish banking relationships, and provide ongoing support.

By the end, you'll have a fully operational trading entity ready for future growth.

*List of Fees

Retainer Fee: $275,000 USD upfront
Carried Interest: 2-5% of the capital raised
Profit Sharing: 10-15% of net profits from the transaction

Raise Capital Within 4 Months

Initial Steps (3-5 Weeks)

Week 1: Request a proposal or book a consultation to discuss your needs. Sign the proposal and pay the $275,000 USD retainer fee.
Weeks 2-4: We analyze your deal, including suppliers, buyers, insurance, transport, and inspection companies. You get a detailed feasibility report.

Mid-Process (6-8 Weeks)

Weeks 5-6: Develop risk mitigation strategies like hedging and insurance. Structure the deal with the right financial tools.
Weeks 7-8: Create a capital raising plan (debt or equity), prepare business plans and marketing materials. Engage a Book Running Lead Manager (BRLM) to manage the offering.

Final Steps (4-6 Weeks)

Weeks 9-10: Engage a credit rating agency to assess and validate the deal. Integrate their findings into the structure.
Weeks 11-12: Present the deal to investors, negotiate terms, and secure commitments.
Weeks 13-14: Ensure compliance with all relevant laws, finalize and sign all legal documents.
Weeks 15-16: Execute the trade finance deal, continuously monitor for compliance and performance. Introduce you to banks for setting up revolving credit facilities and trade instruments like DLCs and SLOCs.

Case Studies

Import of ICUMSA45 Sugar

Secured $10M pre-export financing for importing ICUMSA45 sugar from Brazil to the Middle East. Implemented hedging and performance guarantees. Completed funding within 12 weeks, establishing a revolving credit facility for ongoing operations.

MashIt
Purchase of Copper Cathodes

Structured $15M inventory financing for purchasing copper cathodes from Zambia to Europe. Developed risk mitigation strategies and secured investor commitments. Completed trade within 14 weeks, building strong banking relationships.
Import of EN590 Diesel Fuel

Structured $20M pre-export financing for importing EN590 diesel from Russia to Southeast Asia. Utilized DLCs and SLOCs, implemented hedging, and secured capital within 16 weeks, establishing future trade finance facilities.

YesSuits

Request for Quotation (RFQ) – Structured Trade Finance

Please complete all fields as accurately as possible. To initiate this RFQ, a non-refundable processing fee of $500 USD is required. This fee covers the time and resources needed to evaluate your financing needs, engage with qualified funders, and prepare a tailored proposal. Any incomplete or vague submissions may delay our response.

Structured Trade Finance Form

First Name

Last Name

Company

Title/Role

Phone (Insert Country Code)

1. Briefly Describe Your Company and Industry Focus

2. What Amount and Type of Trade Finance Are You Seeking?

3. Describe the Transaction and Trade Flow

4. Provide Details of Existing Financial Arrangements or Trade Facilities

5. Describe Your Preferred Trade Finance Instruments and Services

6. What Collateral, If Any, Are You Offering?

7. Attach Key Documents Relevant to This Request

Attach relevant documents, including recent financial statements, bank statements (last 6 months), trade contracts or purchase orders, and a company profile.

8. What Is Your Desired Timeline and Any Special Requirements?

Acknowledgments

I have read and understood the requirements of this RFQ form.

I understand that a $500 USD non-refundable processing fee is required to process this request.

I confirm that the information provided is accurate and complete to the best of my knowledge.

Robust Lender & Distribution Network

We work with top banks and investors to get you the best rates and terms for your trade finance needs. Our strong network ensures you have the capital and support needed for smooth and successful trade transactions.

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FAQs

Welcome to our F.A.Q. section! Here you'll find answers to common questions about our Structured Trade & Commodity Finance services.

If you have more questions, book a paid consultation with us. If you're ready to start, you can request a proposal and sign with us once we approve your deal.

What Does the Retainer Cover?

The $175,000 USD retainer fee covers:

Initial Consultation: Understanding your business needs and goals.
Deal Analysis: Thorough analysis of your proposed trade deal, including supplier, buyer, insurance, transport, and inspection assessments.
Feasibility Study: Detailed report with recommendations and risk assessment.
Risk Mitigation Strategy Development: Creating strategies to manage financial and operational risks.
Credit Rating Agency Engagement: Hiring a credit rating agency to assess and validate the deal.
Capital Raising Strategy: Developing a plan to raise funds through debt or equity.
BRLM Engagement: Engaging a Book Running Lead Manager to manage the distribution of securities.
Documentation Preparation: Creating business plans, financial projections, and marketing materials.
Legal and Regulatory Compliance: Ensuring the transaction meets all legal requirements.
Ongoing Monitoring and Support: Continuously monitoring the transaction for compliance and performance, providing support as needed.

We ensure full support for your trade finance needs from start to finish. If you're ready to move forward, request a proposal today, and let's get started on securing your business's success in international trade.

Book A Consultation

What is Structured Trade & Commodity Finance?

Structured Trade & Commodity Finance (STCF) is a specialized form of financing that helps companies engage in international trade of commodities such as agricultural products, energy, and metals. It involves using financial tools like pre-export financing, inventory financing, and receivables discounting. STCF provides liquidity and reduces risks associated with trading, ensuring smooth transactions from supplier to buyer.

What is Trade Finance Distribution?

Trade Finance Distribution involves raising capital for trade deals through financial instruments such as bonds, notes, or syndicated loans. This capital is sourced from various investors like institutional investors, private equity firms, hedge funds, and specialized trade finance funds. The process includes preparing detailed financial documentation, conducting roadshows to present the investment opportunity, and negotiating terms with investors to distribute the financial risk across multiple parties.

What are Risk Mitigation Methods?

Risk mitigation methods in STCF include:

Hedging: Using financial instruments to protect against price fluctuations in commodities.
Insurance Policies: Purchasing insurance to cover potential losses from events like shipment delays, damage to goods, or buyer default.
Performance Guarantees: Obtaining guarantees from third parties to ensure that contractual obligations are met.
Credit Rating: Engaging a credit rating agency to assess the deal, providing credibility and reducing perceived risk for investors.

These methods ensure that all parties involved are protected from various risks associated with international trade.

What Makes a Transaction Succeed?

A successful transaction in STCF requires:

Thorough Due Diligence: Analyzing the financial health and credibility of suppliers, buyers, and other involved parties.
Effective Risk Management: Implementing strategies to mitigate financial, operational, and market risks.
Strong Banking Relationships: Establishing connections with banks to secure revolving credit facilities, documentary letters of credit (DLC), standby letters of credit (SLOC), and back-to-back LCs.
Well-Structured Financing Plan: Tailoring the financial structure to meet the specific needs of the transaction, including terms, interest rates, and repayment schedules.
Legal and Regulatory Compliance: Ensuring all aspects of the transaction adhere to relevant laws and regulations, avoiding legal pitfalls.
Engagement of a Book Running Lead Manager (BRLM): To manage the distribution of securities and secure investor commitments.

What Types of Investors are Involved?

Investors in STCF deals typically include:

Institutional Investors: Pension funds, insurance companies, and asset managers looking for stable returns.
Private Equity Firms: Investors seeking high returns through strategic investments in trade finance deals.
Hedge Funds: Investors interested in diverse portfolios and willing to invest in higher-risk trade finance opportunities.
Specialized Trade Finance Funds: Funds specifically focused on investing in trade finance transactions, providing expertise and capital.

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For inquiries prior to submitting a Request for Quote (RFQ), please schedule a 45-minute consultation.

Financely connects growth-oriented businesses with investors seeking premium opportunities, effectively bridging the gap between capital demand and supply. While we are not a securities broker or dealer, we collaborate with investment banks, legal counsel, and other professionals as needed. We do not offer to buy or sell securities and disclaim liability for capital-raising results.

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Financely Inc. is a corporate finance consulting firm wholly owned by Aurora Bay Trust, a Bahamas established Trust or its relevant authorised affiliates. Our advisory business is carried out through Financely Group LLC. We do not operate as a securities broker/dealer. Please read our terms of service to determine if working with Financely Group is appropriate for you. Pursuant to the Dodd-Frank Act, we operate as an exempt foreign private adviser in the United States.