Trade Finance Credit Facilities Explained | LCs, SBLCs & Borrowing-Base Lines
Trade Finance Credit Facilities Explained
Trade flows die when cash sits idle between purchase and resale. Credit facilities bridge that gap, allowing goods to move while balance sheets stay liquid. This page outlines the main instruments—how each works, when to use them and the value Financely adds at every step.
Core Facility Types
| Facility | Primary Use | Tenor | Security |
|---|---|---|---|
| Letter of Credit (LC) | Pay supplier at sight or on acceptance | 30–90 days | Counterparty credit, shipping documents |
| Standby LC (SBLC) | Guarantee buyer performance or credit | Up to 1 year | Cash margin or corporate indemnity |
| UPAS LC | Supplier paid at sight; buyer settles usance | 90–180 days | Deferred payment undertaking |
| Bridge Loan | Cover freight, storage and taxes | 60–120 days | Pledged cargo, assignment of receivables |
| Borrowing-Base Revolver | Fund rolling inventory and receivables | 12 months revolving | Periodic collateral valuation |
| Receivables Discounting | Accelerate payment from buyers | 30–120 days | Assigned invoices |
Where Financely Fits In
- Structuring: We align tenor, collateral and draw mechanics with the physical trade.
- Lender Matching: Banks, funds and insurers are selected by product line, geography and risk appetite.
- Documentation: LC text, security agreements and insurance cover are negotiated to lender and borrower standards.
- Execution Oversight: We track shipment, margin calls and repayment so the facility self-liquidates on time.
Process Overview
- Initial Assessment – Sponsor shares trade flows, financials and facility wish-list.
- Indicative Term Sheet – Facility size, advance rate and pricing agreed in principle.
- Due Diligence – Counterparty KYC, collateral audit and credit-insurance quotation.
- Documentation – Legal drafting, LC issuance and account-control agreements finalised.
- Drawdown – Funds or LC issued; goods move.
- Repayment & Reset – Sale proceeds sweep to lender; line refuels the next shipment.
Eligibility Snapshot
- Annual turnover from USD 50 million
- Audited statements for two years
- Verified purchase and sales counterparties
- Risk management and trade-finance history
Ready to fund your next trade cycle? Submit your details and receive an indicative structure within two business days.
Request Trade FinanceFinal Word
Whether your cargo is diesel, copper or rice, credit that matches movement keeps margin intact. Financely delivers that alignment—risk, capital and cash flow moving together.
Financely Group arranges debt and credit facilities on a best-efforts basis. Funding is subject to lender approval, compliance checks and a signed mandate. We may decline transactions that fall outside regulatory or professional standards.
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.
