We provide lender-ready capital raise packaging and debt or equity placement support for business owners and buyers looking to secure serious term sheets and close funding on a defined timeline.
Get Started With Financely
For business owners and acquirers pursuing private debtsubmit your deal for review. We revert within one working day with next steps and either a quote for our services.
Find The Right Lender Faster. Access 12,000+ Lenders.
AI Lender Match helps business owners, investors, and sponsors identify lenders that fit their deal profile without wasting weeks on cold outreach. Get a smarter starting point for acquisitions, commercial real estate, trade finance, and structured debt transactions.
Closing the Equity Gap on a Trade Deal Without Giving Away the Margin
Trade finance lenders rarely fund 100% of a cargo. They advance against a share of the transaction value and expect the trader to cover the rest from their own balance sheet. That shortfall is the equity gap, and it is the single most common reason viable commodity deals never close.
This guide explains where the gap comes from, the practical ways traders fund it, which options cost the least margin, and how Financely structures transactions so the gap is smaller before any lender sees the file.
What the equity gap is and why lenders insist on it
The gap is the lender's protection.
A trade finance facility is secured on the goods and the receivable. If prices fall, the cargo is delayed or the buyer disputes quality, the lender needs a cushion between what it advanced and what the collateral can be sold for. Your contribution is that cushion. It also proves you have money at risk in the deal, which lenders treat as a test of commitment.
The gap varies with risk, not with your enthusiasm.
Volatile commodities, weak buyers, long voyages and difficult jurisdictions all push advance rates down. Strong offtakers, insured receivables, independent collateral management and a track record push them up.
A worked example
The figures below are illustrative. Take a trader buying a cargo for USD 5 million and selling it for USD 5.4 million. A lender offers to advance 80% of the purchase price, so USD 4 million. The trader must fund the remaining USD 1 million before the supplier will ship. The expected gross margin is USD 400,000, which means the trader needs more than twice their expected profit in cash to do the deal at all. Each method below either shrinks that USD 1 million or brings someone else in to fund it.
Six ways to fund the gap
Supplier credit
Negotiate deferred payment on part of the price, or a smaller deposit with the balance on documents. Every dollar of supplier credit is a dollar you do not need to fund.
Buyer prepayment
A creditworthy offtaker may pay a deposit or partial prepayment in exchange for a better price or secured supply. This is often the cheapest capital in the chain.
Credit insurance
Insuring the buyer receivable with a rated insurer lowers the lender's risk and can raise the advance rate, shrinking the gap directly.
Collateral management
An independent collateral manager controlling the goods in a warehouse or at port gives lenders comfort to lend more against inventory.
Transaction equity partner
An investor funds the gap for a share of the deal profit, one cargo at a time. Expensive, but it uses no balance sheet.
Mezzanine or junior debt
A specialist fund lends behind the senior lender, usually at a higher rate, covering part or all of the gap.
Most closed deals combine several of these.
Supplier terms and an insured receivable might reduce a 20% gap to 8%, and a transaction partner then covers what remains. Our structured trade and commodity finance guide
explains how these layers sit together in a single facility.
There is no such thing as a leased instrument that fills the gap.
Offers to "monetise" a bank guarantee, rent proof of funds, or fund your equity in exchange for an upfront fee and an MT760 are the most common fraud in this market. No legitimate senior lender accepts borrowed or leased money as your contribution.
Comparing the options
Option
Cost to the trader
Best fit
Supplier credit
Low, sometimes a small price premium
Repeat suppliers who already trust you
Buyer prepayment
Low, usually a price discount
Strong offtakers who value secured supply
Credit insurance
Premium on the insured receivable
Creditworthy buyers in insurable jurisdictions
Collateral management
Monitoring and warehousing fees
Inventory held before sale
Transaction equity partner
High, a share of deal profit
Traders with strong deals but thin balance sheets
Mezzanine debt
High interest, junior security
Repeat flows with proven performance
Start with the cheapest layers.
Traders often jump straight to an equity partner and hand over half their margin, when better supplier terms or an insured receivable would have closed most of the gap for a fraction of the cost.
How Financely structures it
We reduce the gap before we fund it.
Financely reviews your supply contract, offtake, logistics and security package to find where the advance rate can be improved, then models the remaining contribution. Only after that do we approach capital providers.
We place each layer with the right provider.
Using AI Lender Match, we screen the transaction against more than 12,700 verified lenders, including structured commodity finance
desks, private credit
funds and specialty lenders, and match the senior facility and any junior capital to providers whose mandates fit the commodity, corridor and ticket size.
You keep control of the deal.
We present the options and their cost side by side, so you can decide how much margin to share and with whom.
Get the gap funded on your next cargo
Send us the transaction details and we will reply with a quote covering scope and delivery.
It is the part of the transaction value the lender will not finance, which the trader must fund from their own resources or other capital before the deal can proceed.
Can a trade deal be 100% financed?
Rarely through a single lender. Combining supplier credit, buyer prepayments and junior capital can reduce the trader's own cash contribution close to zero on strong transactions, but each layer has a cost.
Will a lender accept proof of funds or a leased guarantee as my equity?
No. Lenders require real, unencumbered funds or a recognised capital layer. Leased instruments and rented proof of funds are not accepted and are frequently linked to fraud.
How much margin will a transaction equity partner take?
It depends on the commodity, the counterparties and the deal history. Partners price for risk, so stronger security and offtake terms lead to a smaller share.
This article is general information only and is not legal, tax or investment advice. Financely is an advisory and arranging firm, not a lender or broker-dealer. All financing is subject to lender underwriting, due diligence, credit approval, documentation and conditions precedent. No outcome or timeline is guaranteed.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using oursecure intake form, and receive a quotewithin 1-3 business days. Existing clients can connect with theirrelationship managerthrough oursecure web portal.
All submissions arepromptly 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.
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.
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.
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.
Once 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.
Still Have Questions? Schedule a Consultation
If you still have questions after visiting ourFAQandProcedurepages, we invite you to book a paid consultation for personalized guidance. A $250 USD fee applies per session.
Important Resources
Popular Services
Security notice: we are aware of third parties using Financely’s name without authorization.Only emails sent from our official domains and communications through our portal are valid. Please verify any outreach before sharing documents or sending payments, and read ourimpersonation warning.
About Financely
Financelyadvises growth-focused businesses on accessing capital by introducing their opportunities to professional investors. Financely is not a securities broker or dealer. Where appropriate, engagements are coordinated with regulated broker-dealers, investment banks, legal counsel, and other specialists.
All mandates start with an RFQ. We review submissions, issue a brief Go/No-Go memo, and where bankable, release a Term Sheet that leads to funding. We arrange capital across Senior Secured, Unitranche, Second Lien/Mezzanine, Preferred Equity, and Gap Solutions. We do not process deals by email or chat.
Trade Finance
Letters of Credit, Standby LCs, Confirmations, Receivables Finance, and Inventory Lines with control.
LCs and Confirmations
SBLC and Guarantees
AR/AP and Supply Chain
Funding arranged for trade flows with instruments sized to your cycle and aligned to delivery and settlement.
Move forward to secure working capital and keep goods moving. Submit the RFQ to start underwriting for funding.
KYC and Source of Funds required. Engagements are best-efforts and subject to underwriting. Preference for operating companies with meaningful revenue.
See our FAQ
and Procedure.
Financely Inc. (“Financely”) provides corporate-finance advice and is wholly owned by Aurora Bay Trust, a trust formed under Bahamian law, together with its authorized affiliates. Depending on deal structure, jurisdiction, and local rules, engagements may be carried out through Financely Group LLC, a non-deposit-taking, non-banking financial company; Ashford Capital Advisory LLC; or another related entity.Financely and its affiliates are not registered as securities broker-dealers and do not execute securities transactions or hold client funds or securities. When a mandate involves the purchase or sale of securities and a registered intermediary is required, any orders are introduced to and executed by one or more independent U.S. broker-dealers registered with the SEC and FINRA. Those broker-dealers are solely responsible for trade execution, custody, and related regulatory obligations. Nothing in this material constitutes an offer, solicitation, or recommendation to buy or sell any security or to engage in any specific transaction. Before engaging Financely Group LLC, Ashford Capital Advisory LLC, or any affiliate, you are responsible for confirming that such engagement complies with your own legal, regulatory, tax, and other requirements. In the United States, certain advisory activities may be conducted in reliance on exemptions available under the Investment Advisers Act of 1940, including the “foreign private adviser” exemption where applicable. Our services and regulatory status may vary by jurisdiction and by transaction type.Clickhereto download our brochure. Emailsupportdesk@financely-group.comfor general enquiries.Click hereto view the complete regulatory disclaimer.