Short-Term Structured Credit Investments for Qualified Investors

1. What Short-Term Structured Credit Means

We are talking about privately placed, asset-backed credit exposures with expected lives measured in months, not years. Trade receivables, supply chain finance advances, insured invoice pools, short-cycle inventory lines, equipment rental receivables, and other self-liquidating claims that burn down as cash comes in. Deals are tranched, collateral-tested, and packaged so qualified investors can target current yield while keeping duration tight.

2. Why Investors Look At This Segment

• Yield Pick-Up vs investment-grade short paper because many borrowers still struggle to access bank lines at scale.
• Short Duration helps manage rate risk; coupons can float off SOFR, Euribor, or base curves.
• Collateral Visibility when eligibility tests, borrowing bases, or credit insurance sit behind the structure.
• Diversification away from listed corporates and crowded credit ETFs.
• Cash Turn from rapid amortization allows recycling into fresh paper if you elect reinvest rights.

3. Asset Types In Scope

• Trade Receivable Pools from export or domestic B2B invoices (often with credit insurance).
• Supply Chain Finance / Approved Payables anchored by investment-grade buyers, paid at maturity.
• Borrowing Base Revolvers on short-dated commodity or finished-goods inventory with monitored collateral.
• Short-Term Equipment / Contract Receivables where revenue is earned and invoiced on completed milestones.
• Consumer or SME Receivable Strips in tight tenor buckets (sub-12 month average life) where data depth supports modeling.
• Credit-Insured Pools that layer insurance recoveries behind obligor payments (subject to policy terms).

4. How Cash Moves Through A Structure

Investor capital sits in an issuing vehicle that purchases or lends against eligible receivables. Collections sweep daily or weekly to a controlled account. Servicer reports feed a waterfall that pays expenses, servicer fees, hedge costs, reserves, and investor coupons. Principal amortizes as receivables liquidate. During any reinvestment window, fresh eligible assets can be added so balances stay deployed. When the window closes, the pool runs off and capital returns as underlying paper matures.

5. Controls We Push For

• Eligibility Criteria(obligor ratings, max invoice age, country limits).
• Advance Rates & Overcollateralization to absorb dilutions and timing gaps.
• Concentration Limits per obligor, sector, and jurisdiction.
• Dilution & Default Reserves sized to historical loss and dispute patterns.
• Commingling Mitigation(lockbox or tri-party collection accounts in investor-controlled banks).
• Trigger Matrix(excess spread, delinquency, insurance claim events) that can divert cash to senior tranches early.
• Backup Servicer and data tapes to reduce servicing disruption risk.
• Audit & Reporting Cadence monthly at minimum; weekly where asset turnover is fast.

6. Target Yield Bands & Liquidity Series

Ranges below are directional and will move with rates, collateral type, and leverage. Net figures are after forecast expenses but before investor tax. Distributions typically monthly; accrual schedules vary by deal.

Series	Target Net Annual Yield	Underlying Focus	Expected Monthly / Quarterly Cash	Indicative Weighted Avg Life
ST-90	6% to 8%	Insured trade receivables & approved payables from stronger obligors	~0.50% to 0.65% monthly (variable)	Approx 3 months
ST-180	8% to 11%	Diversified receivables & short-cycle inventory borrowing bases	~0.65% to 0.90% monthly (variable)	Approx 6 months
ST-360	11% to 14%	Mixed receivable / inventory pools incl select emerging-market counterparties with extra collateral	~0.90% to 1.20% monthly (variable)	Approx 12 months (run-off or revolving)

Fee Drivers

• Arranger fee to Financely at first close: usually 1% to 3% of committed capital, scaled by size and structure.
• Ongoing servicing / admin / trustee: 25 to 75 bps annually.
• Performance carry (where negotiated): paid after investor hurdle return.
• Hedging & insurance premia: pass-through at cost.

7. What You Get From Financely

• Source and pre-screen short-tenor private credit flows across trade, receivables, and working-capital platforms.
• Diligence data tapes, historical losses, advance-rate logic, insurance language, and collection mechanics.
• Structure SPVs or note programs with counsel, trustees, servicers, and custodians aligned.
• Ongoing reporting framework: pool stats, delinquencies, triggers, cash waterfalls, FX hedges.
• Investor updates and quarterly performance calls; escalation alerts if triggers breach.

8. Engagement Steps

• Interest Indication- Register and confirm eligibility.
• NDA & Data Room- Access decks, strat tables, historical performance.
• Diligence Window- Review tapes, triggers, docs; submit Q&A.
• Allocation Request- State ticket size and series preference.
• Subscription Pack- Complete KYC and funding instructions; wire to escrow.
• Closing- Capital deployed; first reporting cycle starts.
• Distribution & Reinvest Options- Elect cash pay or reinvest (if permitted) during the reinvestment period.

9. Eligibility & Minimums

Offered privately to qualified investors under Reg C or comparable exemptions in applicable jurisdictions. Suitability review required. Current working minimum per investor is USD 250,000; feeder or platform access can aggregate smaller tickets subject to approval.

10. Key Risks

• Credit Loss if obligors fail and collateral or insurance recoveries fall short.
• Dilution / Dispute adjustments that reduce invoice collectability.
• Fraud / Data Integrity(duplicate invoices, phantom stock) despite controls.
• Servicer Performance delays that jam cash flow; backup servicer may not transfer smoothly.
• Legal / Enforceability across multiple jurisdictions with differing receivable assignment rules.
• FX & Rate Moves where assets and liabilities sit in different currencies or bases.
• Liquidity thin or gated; early exit may be restricted or priced at a discount.
• Regulatory Change that alters investor eligibility or asset treatment mid-hold.

11. Quick FAQ

Is this like a money market fund?

No. These are private, credit-exposed vehicles with higher risk and higher target yield. Net asset stability is not guaranteed.

Are yields fixed?

Targets only. Actual distributions move with asset performance, fees, and defaults.

Redemption?

Some series amortize naturally as assets liquidate. Others offer scheduled liquidity windows. Secondary liquidity is limited.

Leverage?

Some vehicles layer senior funding; leverage can lift yield but raises loss volatility. Check docs.

Reporting?

Monthly pool data plus quarterly calls; audited annuals when scale justifies.

Financely Group arranges private credit opportunities for qualified investors. We are not a deposit-taking bank and do not guarantee principal or yield. Securities referenced here are offered only in private transactions under Reg C or another applicable exemption and are not available to the general public. This page is marketing material, not an offer or solicitation. Offers are made solely through definitive confidential offering documents that include detailed risk factors. Target yields are illustrative; actual results can be lower, higher, or negative. Capital is at risk. Liquidity can be limited. Past performance does not predict future outcomes. Participation requires executed engagement terms, KYC, sanctions screening, and acknowledgment of suitability standards in your jurisdiction. Misrepresentation or withheld information can trigger termination and reporting under AML and CTF rules.