Structured Trade & Commodity Finance
Structured Trade & Commodity Finance
- * Insufficient lender appetite for country, counterparty, or commodity
- * Title and control gaps between shipment, storage, and delivery
- * LC or guarantee wording that conflicts with Incoterms or contract
- * Funding aligned to offtake schedules, receivables, and inventory cycles
- * Bankable controls: title, warehouse or tank receipts, account sweeps
- * Dated draw plan with third-party verifications at each stage
- * Liquidity sized to eligible collateral and proven flows
- * Lower documentary and basis risk at presentation
- * Clear takeout from collections, sweeps, or offtake prepayment
Deliverables
Contracts, Incoterms, logistics, insurance, sanctions screening, and hedging policy compiled to lender checklists with evidence links.
Title over goods, assignment of receivables, warehouse or tank receipts, controlled accounts, and automatic sweeps linked to invoices.
Staged drawdowns against inspection, storage, or shipping evidence with variance reporting and corrective actions pre-agreed.
Structures
- * Offtake-backed prepayments and receivables purchases
- * Pre-export finance and tolling-based working capital
- * Borrowing base lines across inventory and A/R
- * Warehouse or tank receipt finance with control terms
- * Repos and tripartite storage arrangements with operators
- * Assignment of export proceeds with waterfall and sweep
Commercial LCs under UCP 600, standbys under ISP98, guarantees under URDG 758, and confirmation where required. Drafts are concise to reduce discrepancy risk.
Indicative terms
Advance sized to 60–85% of eligible value after reserves. Tenor 90–360 days on transactional lines, longer where offtake is firm.
Floating base such as SOFR or EURIBOR plus a spread reflecting route, collateral quality, and counterparty risk. Upfront and exit fees defined at mandate.
Use of proceeds, hedging where price is open, minimum liquidity, eligibility tests, reporting on cargo, receivables, and storage balances.
Comparison
| Decision point | Single bank template | Generic brokerage | Structured placement |
|---|---|---|---|
| Collateral control | Standard wording | Forwarded requirements | Title, WRs, tank receipts, sweeps mapped to each leg |
| Advance rate | Conservative caps only | Inconsistent sizing | Eligibility tests and reserves calibrated to risk |
| Document risk | Limited guidance | After-the-fact fixes | Pre-checks of drafts and shipping documents |
| Timeline control | Queue dependent | Unclear ownership | Dated plan to first draw and takeout |
Use-case playbooks
Signed offtake with price formula and delivery profile. Advance sized to a defined share of prepayment. Security over receivables and export proceeds with priority sweep.
Availability on eligible inventory and A/R. Reserves for freight, taxes, and price moves. Monthly redetermination and concentration limits.
Funding linked to feedstock intake and output. Draws tied to plant, storage, and shipment milestones with inspection evidence.
Information required to proceed
- * Contract summary, Incoterms, routes, volumes, and delivery windows
- * Buyer profiles, payment terms, and any confirmations requested
- * Storage locations, WR or tank terms, insurance and loss payee clauses
- * Account structure, sweep mechanics, and reporting frequency
- * Corporate documentation, ownership, sanctions and AML checks
- * Hedging policy and margin control where price is open
Process to term sheet and first draw
Map flows, collateral, and takeout. Select structure and set draw pattern against milestones and evidence.
Issue an operator-grade file to selected lenders. Compare advance rates, reserves, pricing, covenants, and timing.
Facility, security, assignments, account control, insurance, and verification procedures executed with a clear CP checklist.
First draw released. Ongoing reporting on cargo, receivables, storage, and hedging with exceptions tracked to resolution.
FAQ
By eligible value after reserves for freight, duties, taxes, quality, and price volatility. Eligibility tests and concentration limits apply.
Can multiple buyers be pooledYes via receivables pools with notice, assignment, lockbox control, and periodic redetermination.
Do you arrange LC confirmationYes where a confirming bank accepts the country, bank, and tenor at a quoted price.
Clean title chain, warehouse or tank receipts with control terms, and account control agreements tied to invoices and sweeps.
How is commodity price risk addressedDefined hedging policy with margin controls. Draw rules can link to hedged positions where exposure is open.
Can structures be combinedYes. Facilities frequently blend borrowing base with transactional finance or offtake prepayment to lift availability.
Request structured trade finance terms
Share the contract summary, routes, storage terms, counterparties, target advance, and timing. A structure map, advance rates, and a dated plan to first draw will follow.
Start the MandateArranger on a best-efforts basis. Eligibility is subject to KYC and AML, sanctions screening, technical and legal diligence, collateral verification, and lender approval. No commitment to lend is expressed or implied.
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.
