Self‑Liquidating Trade‑Finance Vehicle – Full Investor Brief & Subscription Path

A global commodity flow doesn’t stop because traditional banks are risk‑shy. That gap is where specialist trade‑finance lenders earn their keep and where qualified purchasers can tap uncorrelated, collateral‑backed yield. Below is a complete, copy‑and‑paste‑ready information page covering Financely’s new trade‑finance investment vehicle: objectives, mechanics, risk controls, performance record, governance, key terms, and next steps. The programme is offered solely to qualified purchasers under Section 3(c)(7) of the U.S. Investment Company Act of 1940.

1. Investment Snapshot

* Target only. Returns not guaranteed.

2. How the Strategy Works

2.1 Real‑World Loan Cycle

1. Deal Origination. Manager screens commodity traders with a minimum five‑year audited history and tangible collateral.
2. Collateral Package. First‑ranking pledge over inventory or receivables, marine insurance naming lender as loss payee, and legal assignment of sales proceeds.
3. Drawdown. Funds released against supplier invoices, freight bills, or export duties—as verified by independent collateral managers.
4. Shipment & Monitoring. Cargo tracked daily. Price‑volatile goods hedged via exchange or OTC instruments.
5. Repayment. Buyer payment lands in pledged collection account, automatically sweeping principal and margin.

2.2 Why Borrowers Pay 8‑12 %

• Bank pull‑back on Basel capital rules.
• Emerging‑market FX volatility that scares vanilla lenders.
• Speed: approvals in days, not months.
• Flexible collateral—banks often demand 100 % cash; we take pledged goods.

2.3 Risk Controls That Matter

• 0 % unsecured exposure – every facility is asset‑backed.
• Maximum 15 % borrower concentration.
• Real‑time collateral valuation feed; margin calls triggered at 85 % loan‑to‑value.
• Full recourse to parent where credit allows.

3. Performance Record

The manager has funded 310 facilities since 2018. Every loan repaid on time, with no interest arrears. Weighted average net return over calendar 2020‑2024 was 9.7 %. While history can’t predict the future, a zero‑loss book under multiple market shocks—including the 2022 commodity spike—speaks to discipline.

4. Live Pipeline Illustrations

4.1 Fuel Blend – South‑East Asia

• USD 15 million revolving line, 120‑day tenor.
• Collateral: pledged cargo at bonded storage, receivable from BBB+ refinery.
• Yield: SOFR + 650 bps (≈ 10.3 % p.a.).

4.2 Cocoa Export – West Africa

• USD 6 million spot loan, 75‑day tenor.
• Collateral: warehouse receipts plus marine & political‑risk cover.
• Yield: fixed 10.8 % p.a. equivalent.

5. Governance & Oversight

• Regulated Adviser. Financely Advisory Ltd – FCA‑authorised (FRN on request).
• Custodian. AAA‑rated global bank holds cash and security docs.
• Administrator. Tier‑1 independent firm handles NAV, flows, investor services.
• Auditor. Big Four, IFRS statements.
• ESG Committee. Screens for sanctions, deforestation, forced‑labour risk.

6. Key Risks to Weigh

No marketing document is honest without spelling out downside.

• Counterparty Risk. A trader could fail—collateral aims to cover loss, but recovery is never instant.
• Jurisdictional Enforcement. Courts in frontier markets may move slowly or unpredictably.
• Cargo Quality. Weight/grade disputes can shave recovery values.
• FX Controls. Sudden capital‑control measures might delay USD repatriation.
• Liquidity. Interests can’t be flipped on a whim; expect to hold through each loan cycle.

7. Terms & Economics

8. Subscription Process

1. Indication of Interest. Sign a one‑page NDA and confirm qualified‑purchaser status.
2. Data‑Room Access. Receive private‑placement memorandum, draft LPA, sample loan files.
3. Allocation Call. Discuss pooled vs. deal‑by‑deal tickets; soft‑circle amount.
4. Subscription Pack. Execute documents; complete KYC and AML questionnaires.
5. Capital Call. Wire funds to FCA‑segregated account aligned with loan settlement schedule.
6. Ongoing Reporting. Secure portal shows positions, collateral values, and cash movements 24/7; monthly factsheet emailed.

9. Frequently Asked Questions

9.1 Who exactly qualifies?

Any natural person or entity meeting the “qualified purchaser” thresholds in Section 2(a)(51) of the Investment Company Act—e.g., individuals owning US $5 million+ in investments, or entities with US $25 million+.

9.2 Are returns fixed?

No—target yields depend on deal mix and may trend below or above 11 %. There is no guarantee of profit, and capital is at risk.

9.3 How is idle cash treated?

Unallocated cash sits in a AAA‑rated treasury fund at the custodian, earning overnight yield until drawn.

9.4 Can I cherry‑pick loans?

Yes. Opt for deal‑by‑deal participations and approve or decline each facility after reviewing credit packs.

9.5 Do you take commodity price risk?

Only residual exposure. Borrowers hedge, and margin calls are in place. The loan is primarily credit risk secured by collateral value, not a directional bet on prices.

Important Information – For Qualified Purchasers Only
This communication is issued by Financely Group and is for informational purposes. It does not constitute an offer to sell, or a solicitation of an offer to buy, any security. Any such offer will be made solely by means of the confidential private‑placement memorandum (the “PPM”) and related subscription documents, which should be reviewed in full. Interests will be offered in reliance on the Section 3(c)(7) exclusion under the Investment Company Act of 1940 and will be available only to “qualified purchasers” and to non‑U.S. persons under Regulation S of the Securities Act of 1933. Interests have not been, and will not be, registered under the Securities Act or the securities laws of any state. Past performance is not indicative of future results. Target returns are estimates and may change without notice. All investments involve risk, including possible loss of principal. Prospective investors should consult independent legal, tax, and financial advisers before investing. Financely Group is authorised and regulated by the UK Financial Conduct Authority (FRN available on request).