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Trade Finance 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*
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