Trade Finance Bridge Loans: Fast Capital for Importers & Commodity Traders
Trade Finance Bridge Loans: Fast Capital for Importers & Commodity Traders
When shipment timing and cash-flow schedules don’t align, companies can face crippling gaps between supplier payment and buyer settlement. Trade finance bridge loans step in to fill that gap, providing short-term working capital secured against goods in transit or receivables. Financely underwrites these facilities and distributes them via our digital platform—so you get funds in days, not weeks.
1 Understanding Bridge Loan Mechanics
A bridge loan in trade finance is typically structured for tenors of 30 to 180 days. Draws trigger as goods are loaded or title transfers. Interest accrues daily, rolled into a single repayment at maturity, often timed to coincide with a Letter of Credit payment or invoice collection. An interest reserve account may be set up to ensure timely service.
2 Collateral & Borrowing Base
Collateral can include warehouse receipts, shipping documents or assignment of proceeds under a future LC. Lenders establish a borrowing-base formula—commonly 70–85% of receivable value or 60–75% of inventory cost. Concentration limits manage single-cargo exposure. Proper documentation ensures perfecting security interests.
3 Pricing & Fee Structure
| Component | Typical Range |
|---|---|
| Margin (spread over base rate) | 3%–7% p.a. |
| Upfront Fee | 0.5%–1.5% of facility |
| Interest Reserve | 1–2 months’ interest |
| Commitment Fee | 0.25%–0.5% p.a. |
4 Underwriting & Distribution via Financely Platform
Our in-house team evaluates credit risk, market and logistical factors in under 72 hours:
- Credit Review: Analyze borrower history, buyer credit, trading documents.
- Commodity Analysis: Verify shipment schedules, Q&Q certificates, insurance cover.
- Legal & Compliance: Ensure documentation meets UCP 600, ISBP standards.
- Facility Issuance: Terms loaded onto our digital platform for investor subscription.
Once approved, the loan is syndicated across our network of private credit pools. Investors commit capital in tranches, diversifying risk. Disbursement follows automated KYC/AML checks and execution of funding instructions.
5 Why Choose Financely?
- Speed: From application to funding in under 5 business days.
- Flexibility: Custom tenors, scalable facility sizes from USD 500K to USD 50M.
- Transparency: Real-time dashboard shows utilization, covenants and cash-flow forecasts.
- Global Reach: Access to capital from our network of 180+ lenders and funds.
Interested in a bridge loan tailored to your trade cycle? Financely underwrites, structures and distributes short-term trade finance facilities through our platform—so you secure goods, manage cash-flow and bridge payment gaps seamlessly.
Learn How It WorksGet 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.
