Whether you're an exporter, importer, or trade advisor, understanding the instruments available in trade finance is critical. These tools don't just fund deals — they de-risk them, accelerate cash flow, and unlock growth. This guide explains the key products you can use to secure and execute cross-border transactions.
Letters of Credit are issued by a buyer’s bank to guarantee payment to the seller once agreed documents (like a bill of lading or invoice) are presented. They reduce non-payment risk in new or high-risk trade relationships.
An SBLC acts as a safety net — it’s only triggered if the buyer fails to fulfill their contractual obligation. It’s commonly used in project finance, procurement deals, or to back contracts where trust hasn’t been built yet.
Like SBLCs, bank guarantees back the buyer’s obligation, but are more common outside the U.S. They may cover performance, advance payments, or bids in tender processes.
This method involves a bank forwarding shipping documents to the buyer’s bank, who releases them in exchange for payment or acceptance of a bill. It’s less secure than an LC but cheaper and used in trusted relationships.
In factoring, a company sells its receivables (invoices) to a lender at a discount in exchange for immediate cash. It’s often used by exporters to manage cash flow when buyers pay on 30–90 day terms.
Forfaiting is used in medium- to long-term trade deals. An exporter sells future receivables (like promissory notes) to a forfaiter — usually a bank or specialist — who assumes the payment risk.
This covers exporters against the risk of non-payment by foreign buyers due to commercial or political reasons. Often supported by export credit agencies (like EXIM, SACE, etc.).
Digital platforms help companies submit, track, and manage financing requests — from invoice finance to LC issuance. Financely, for example, connects clients with lenders globally and even issues trade instruments through its network.
| Instrument | Function | Typical Use Case | Risk Coverage |
|---|---|---|---|
| Letter of Credit | Guarantees payment against documents | New trading relationships, high-value deals | Buyer default |
| SBLC | Guarantee triggered by buyer’s default | Performance guarantees, large procurements | Buyer non-performance |
| Bank Guarantee | Backs contractual performance | Bids, construction projects, tenders | Non-fulfillment |
| Factoring | Early payment against invoices | SMEs waiting on customer payments | Buyer insolvency |
| Forfaiting | Advance against long-term receivables | Capital goods exports, infrastructure | Medium-term risk |
Financely helps companies match the right instrument to the right deal. Whether you're importing, exporting, or advising a transaction — we work globally to issue DLCs, SBLCs, and structured credit facilities that actually get your deal done.
We help you choose the right product, structure it properly, and connect with active lenders or issuers worldwide.
Submit Your Deal Book a 1:1 CallSubmit 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.
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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 RequestAccess 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.
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Submit a RequestFinancely 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.
Financely advises 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.
Financely does not solicit, offer, or accept orders to buy or sell securities and makes no assurance regarding capital-raising outcomes.
Services are strictly business-to-business. Financely does not provide personal finance, consumer credit, or retail advisory services.
Advisory services are reserved for post-revenue companies that recognize the time and resources required for professional underwriting.
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.
Letters of Credit, Standby LCs, Confirmations, Receivables Finance, and Inventory Lines with control.
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.
Limited or non-recourse structures for energy and infrastructure with lender-ready materials.
Funding solutions aligned to project cash flows with credible covenants and conditions to reach notice to proceed.
Advance the file to termable status. Submit the RFQ so we can underwrite and secure funding.
Debt and Preferred solutions anchored on cash flow, Quality of Earnings, and clear closing mechanics.
Funding across senior, unitranche, and preferred to match stable cash flows and acquisition timelines.
Get financed on workable terms for closing. Submit the RFQ to start underwriting.
Acquisition, development, bridge, and refinance with lender-ready packs and third-party reports managed.
Funding calibrated to DSCR, leverage, and tenancy with terms designed to close.
Move to a financeable package. Submit the RFQ to initiate 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, engagement 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. When a mandate involves the purchase or sale of securities and a registered intermediary is required, all orders are introduced to and executed by a U.S. broker-dealer registered with the SEC and FINRA, acting as “chaperone” under SEC Rule 15a-6 (17 C.F.R. § 240.15a-6). Nothing here constitutes an offer, solicitation, or recommendation to buy or sell any security. Before proceeding, read our Terms of Service to confirm that engaging Financely Group LLC, Ashford Capital Advisory LLC, or any affiliate aligns with your legal and regulatory requirements.In the United States, we operate as an
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