Accessing Short-Duration, Self-Liquidating Trade Credit Deals in Emerging Markets
Accessing Short-Duration, Self-Liquidating Trade Credit Deals in Emerging Markets
Capital allocators are increasingly turning toward structured trade finance as a way to deploy capital into real-world credit assets with defined exits, low duration risk, and uncorrelated performance. In particular, short-duration, self-liquidating trade credit in emerging markets is gaining traction with specialty lenders, credit funds, and family offices seeking higher yields without long-term exposure.
At Financely, we originate and underwrite trade finance transactions across Africa, Asia, the Middle East, and LATAM. These deals are packaged for institutional execution and include instruments such as UPAS LCs, confirmed DLCs, SBLC-backed payment structures, and forfaitable receivables. Every deal is structured with real cash flow logic, secured repayment triggers, and a clear liquidation path.
What Makes These Deals Attractive
- Short Tenors: 30–180 days from disbursement to repayment
- Self-Liquidating: All transactions are built around export settlement, LC maturity, or escrowed buyer payments
- Asset-Backed: Collateral includes SBLCs, warehouse receipts, buyer contracts, or cargo in transit
- Low Default Rates: Historically below 1% across commodity-backed trade deals
- Securitization-Ready: Legal, operational, and financial frameworks meet portfolio aggregation standards
Where the Credit Comes From
Most of these transactions originate from underbanked trade corridors—where exporters, processors, or distributors lack structured credit lines despite having strong counterparties. Financely bridges that gap by underwriting borrower-side risk, coordinating deal structure, and presenting verified packages to capital partners.
Representative Deal Structures
| Type | Structure | Security | Repayment Event |
|---|---|---|---|
| SBLC-Backed Supplier Payment | 90-day payment with advance margin funding | SBLC issued by Tier 1 bank | SBLC maturity + confirmed buyer drawdown |
| UPAS LC Financing | Sight payment to supplier, 180-day buyer settlement | Confirmed LC + contract assignment | Buyer pays LC maturity via bank guarantee |
| Warehouse Receipt Loan | Inventory-based credit secured against bonded stock | Receipt + insurance + storage contract | Goods sold, proceeds released via escrow |
Why These Opportunities Are Mispriced
Banks continue to retreat from emerging-market trade lending due to compliance burden, Basel capital ratios, and internal risk appetites. But the underlying counterparties remain strong—and the structures are solid. The result: specialty credit funds and private lenders can capture double-digit yields on deals that were once priced at 5–6%.
Who Should Engage
- Private credit funds deploying into short-duration, asset-backed instruments
- Structured finance desks seeking self-liquidating trade assets
- Alternative yield seekers with appetite for Africa, MENA, or LATAM flows
- Family offices or wealth managers building short-term secured credit sleeves
Financely delivers a weekly pipeline of self-liquidating, fully structured trade credit deals. If you’re looking to deploy capital into high-quality, underwritten transactions, contact us today.
Contact UsFinal Thought
Trade finance isn’t just a gap—it’s an overlooked asset class. Short-duration, self-liquidating transactions with real collateral and defined exit points belong in any modern credit strategy. Financely brings structure, underwriting, and origination into one process—so capital can flow where it’s needed, and risk can be priced where it’s understood.
Get 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.
Submit a RequestProject Finance
Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
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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.
Submit a RequestFor Banks
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.
