How To Model and Underwrite Trade Finance To Win Lender Approval
How To Model and Underwrite Trade Finance To Win Lender Approval
Here’s the playbook. We build the model, write the credit memo, design the borrowing base, and run a targeted lender process. The objective is clear: a structure that ships, pays, and holds up in credit committee.
Where We Add Value
Facility Types We Cover
Borrowing Base Mechanics That Lenders Respect
Risk Controls That Protect Draws
- Title & Possession: Warehouse receipts, pledge filings, and trust receipts with clear custody.
- Account Control: TRA/blocked accounts, sweep logic, and waterfall discipline.
- Third-Party Eyes: CMA/field monitor, inspection SLAs, random spot checks, and serial verification of documents.
- Insurance: ICC(A) + war/strikes, stock throughput, credit insurance where used, lender loss-payee endorsements.
- Hedging: FX/commodity coverage with margin call funding modeled in the cash plan.
Process and Typical Timeline
- Application & Screening.$500 application. KYC and sanctions checks. Scope and fee quote. 1–3 business days.
- Underwriting & Model. Retainer paid. Credit memo, model and stress cases, LC/facility terms, CP checklist, distribution list. 10–15 business days after full documents.
- Soundings. Discreet checks with target lenders to confirm appetite and ranges. ~1 week.
- Distribution. Staged outreach to banks, DFIs, private credit funds, and confirming banks. 2–4 weeks to indicative terms on straightforward files.
- Term Sheet. Negotiate pricing, covenants, reserves, collateral, and confirmation if needed. 1–2 weeks.
- Documentation & Closing. Bank KYC, legal drafts, SPV if used, trustee/paying agent, filings, CPs. 2–8 weeks by jurisdiction.
Who We Approach
Public and private banks, DFIs and MDBs, private credit funds, confirming banks, and insurance-backed programs matched to corridor, currency, tenor, collateral, and risk limits. We don’t present banks as partners. Allocation depends on appetite at the time of outreach.
Compliance & Regulatory
- Advisory Role. We act as an arranger and corporate finance advisor. We are not a bank or direct lender.
- Securities Activity. Where a transaction involves securities, activity is conducted through and chaperoned by a U.S. SEC and FINRA-registered broker-dealer under SEC Rule 15a-6, or via FCA/MiFID II partners as applicable. Offers are limited to eligible investors under exemptions such as Regulation D.
- Best Efforts. No guarantees on issuance, pricing, or timing. Bank appetite and rules change without notice.
Talk To Us About Trade Finance Underwriting
Submit your intake. After KYC clearance, we issue the invoice. Underwriting starts when payment clears.
Submit Intake FormWe provide arranging and advisory services to corporate clients. This page is not a solicitation to buy or sell securities and is not a commitment to lend. Services are subject to engagement, underwriting, KYC/AML/sanctions screening, and counterparty appetite. Pay only to bank details on our official invoice. We do not accept crypto payments.
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.
Submit a RequestAcquisitions
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.
