Structured Commodity Finance

Trade Finance Solutions

Secure, Self-Liquidating Funding for Global Trade

We provide trade finance solutions that help businesses fund commodity purchases and production cycles with minimal risk. By leveraging the commodities and trade receivables as collateral, we ensure seamless financing that aligns with your operational needs. Our funding solutions enable you to focus on your trade while we handle all payment and banking logistics.

US$2.5

Trillion

Global Trade Finance Gap

65

Million

MSMEs Seeking Funding

Here’s how it works:

We finance your commodity purchases or production costs, backed by a pledge of the commodities and receivables. Once the trade is completed and receivables are reimbursed, you pay the agreed interest and retain your profit margin. This cycle can be repeated, with the possibility of increasing your borrowing base or revolving credit facility (RCF) as your trade volume grows. Our trade finance solutions are self-liquidating, ensuring that the proceeds from your trade automatically settle the loan. This minimizes risk while keeping your operations running smoothly.

Indicative Term Sheet

Trade Finance Term Sheet
Parameter Details
Borrower
  • Corporate entities or trading houses.
  • Proven track record in trade operations.
  • Strong compliance and governance standards.
Facility Type
  • Revolving Credit Facility (RCF): Provides ongoing liquidity for trade operations.
  • Borrowing Base Facility: Structured as a self-liquidating loan, secured against collateral.
Facility Amount

Ranges from $5 million to $200 million. Determined by:

  • Trade volume.
  • Collateral value.
  • Borrower's creditworthiness.
Tenor
  • 90 to 360 days.
  • Renewable for subsequent trade cycles.
Collateral
  • Commodities being financed (e.g., oil, metals, agricultural products).
  • Trade receivables and payment obligations.
  • Warehouse receipts and bills of lading.
  • Other trade-related documents.
Loan-to-Value (LTV)
  • Up to 80% of the commodity value.
  • Subject to market liquidity and volatility.
Interest Rate
  • LIBOR + 3.0% to 6.0%.
  • Fixed rates available upon agreement.
*financely.io – Trade & Project Finance Advisory*

What is Trade Finance Distribution?

Trade finance distribution is the process of transferring or syndicating trade finance exposures to other financial institutions or investors. It allows lenders to diversify their risk, optimize capital allocation, and expand their capacity to fund additional trade transactions. For borrowers, it ensures access to a broader pool of funding sources, often leading to better financing terms and increased transaction volumes.

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Introduction Video

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Trade finance doesn’t have to be complicated. We provide the funding and support you need to execute your transactions with confidence. Submit your documents, and we’ll take care of the rest—from facility approval to fund disbursement.

Advisory Expertise for Fast-Track Trade Finance Deals

Our advisors, backed by Financely’s exclusive distribution network, specialize in structuring trade finance deals across diverse commodities. Once you retain us, they leverage their expertise and our resources to quickly assess and close deals, ensuring efficient access to capital for your business.

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