Financely Group LLC Trade Finance Term Sheet

Introduction:

Financely Group LLC ("Financely") offers this Trade Finance Term Sheet to outline the terms under which it provides financing solutions for the international trade of physical goods. This facility is designed to support clients in optimizing their trade cycles, enhancing liquidity, and facilitating global business operations.

Facility Overview:

The Trade Finance Facility is aimed at financing the purchase, shipping, and sale of physical goods in international markets. It covers various stages of the trade cycle, including pre-shipment finance, inventory financing, and receivables financing.

Terms and Conditions:

• Facility Amount: Minimum USD 1,000,000 to a maximum of USD 50,000,000, subject to the trade volume and creditworthiness of the client.
• Interest Rate: LIBOR + 3% to 5% annually, depending on the transaction's complexity, duration, and risk profile.
• Repayment Period: Flexible repayment terms ranging from 90 days to 1 year, aligned with the trade cycle and cash flow projections of the client.
• Fees: A one-time arrangement fee of 1.5% of the facility amount, payable upon signing of the final agreement.

Security and Collateral Agreement:

• Collateral: Security interests in the financed goods, including but not limited to, pledges over inventory, assignments of receivables, and liens on proceeds from the sale of goods.
• Additional Security: Depending on the risk assessment, additional security may be required, such as corporate guarantees, personal guarantees from company owners, or mortgage over real assets.
• Insurance: Clients are required to insure the financed goods against risks of loss, damage, and theft, naming Financely as the loss payee.

Covenants:

• Financial Reporting: The client must provide quarterly financial statements, including balance sheets, income statements, and cash flow statements, for Financely's ongoing credit assessment.
• Debt-Service Coverage Ratio (DSCR): The client must maintain a minimum DSCR of 1.2x throughout the facility term.
• Current Ratio: A minimum current ratio of 1.5x is required to ensure sufficient liquidity for short-term obligations.
• No Additional Liens: The client agrees not to encumber the financed goods or any additional collateral with further liens without Financely's prior written consent.

Closing Procedure:

1. Term Sheet Acceptance: Client reviews and expresses intent to proceed based on the outlined terms.
2. Due Diligence: Financely conducts a comprehensive review of the client's business, financial health, and the specifics of the proposed trade transactions.
3. Legal Documentation: Execution of definitive financing agreements, including security agreements and any necessary covenants.
4. Fee Payment: Payment of the arrangement fee upon execution of the financing agreements.
5. Disbursement: Funds are disbursed in accordance with the agreed schedule and specific requirements of the trade transactions.

Governing Law:

The terms and any subsequent agreements shall be governed by the laws of the State of New York, USA.

Acknowledgment:

This Term Sheet is a preliminary document intended to facilitate further negotiation and does not constitute a binding offer. Final terms are subject to Financely's approval processes, satisfactory due diligence, and the execution of definitive documentation.

For further inquiries or to begin the application process, please contact Financely Group LLC directly.