Trade Finance Infrastructure
What Is Trade Finance Distribution? How Facilities Actually Get Placed
Trade finance distribution is the process of placing a structured trade finance facility with capital providers after the transaction has been underwritten, packaged, and risk-scoped.
It is not “sending a deal around.” It is controlled placement of a lender-ready transaction into the correct segment of bank and private credit balance sheets, with defined risk parameters, collateral mechanics, and documentary controls.
Without distribution, even a strong trade transaction remains theoretical. Distribution is what converts a structure into executable capital.
Plain-English Definition
Trade finance distribution sits at the intersection of structuring, underwriting, and capital markets.
Once a trade transaction has been engineered into a bankable format, distribution is the controlled outreach to lenders and credit funds whose mandate, risk appetite, ticket size, and jurisdictional coverage match the transaction.
In practice:
Distribution means delivering a lender-ready credit package to pre-qualified capital providers and driving them to written term sheets or written declines.
Why Distribution Exists At All
Banks and private credit funds do not review raw ideas, chat messages, or unstructured decks.
They review standardized credit packages that allow fast internal risk assessment.
Distribution exists because:
- Capital providers specialize by asset class, structure, geography, and risk band
- Each lender has specific documentary and control requirements
- Misplaced deals waste time and damage credibility
A good distribution desk already knows where a transaction belongs before the first email is sent.
What Gets Distributed In Trade Finance
Funded Facilities
- Borrowing base facilities
- Inventory finance
- Receivables finance
- Prepayment / offtake finance
- Structured working capital lines
Non-Funded Instruments
- Letters of Credit
- Standby Letters of Credit
- Bank Guarantees
- Performance bonds
- Payment guarantees
What A Lender-Ready Distribution Package Contains
| Component |
Purpose |
| Transaction Overview |
Explains flow of goods, parties, and economics |
| Sources and Uses |
Shows exactly where capital is deployed |
| Collateral and Controls |
Inventory, receivables, contracts, cash-flow controls |
| Risk Analysis |
Counterparty, performance, price, jurisdictional risk |
| Repayment Mechanics |
How and when lender gets repaid |
| Document Checklist |
KYC, contracts, invoices, logistics, inspections |
Distribution Is Not Brokerage
Brokerage focuses on introductions.
Distribution focuses on outcomes.
A distributor is accountable for:
- Packaging the deal into institutional format
- Routing it only to qualified capital
- Managing lender Q&A
- Driving written decisions
This is why serious trade finance platforms operate distribution desks rather than “marketplaces.”
How Trade Finance Distribution Actually Works
1. Underwriting
Transaction data is validated and stress-tested.
Weak structures are rejected early.
2. Packaging
Credit memo, sources and uses, collateral summary, and controls matrix are built.
3. Lender Matching
Deal is mapped to lenders whose mandate fits.
4. Controlled Outreach
Two structured outreach waves with tracked responses.
Where Financely Fits
Financely operates as a transaction-led capital advisory and distribution desk.
We structure, underwrite, and distribute trade finance transactions to banks and private credit funds globally.
To understand the broader category, see What Is Trade Finance
and Trade Finance Services.
If your transaction involves credit enhancement, review How To Raise Capital Using A Standby Letter Of Credit.
We do not promise funding.
We drive written lender outcomes.
Who Trade Finance Distribution Is For
- Commodity traders with recurring flow
- Importers and exporters with signed contracts
- Producers needing working capital
- Trading houses scaling balance sheet
Common Reasons Distribution Fails
Most failures come from:
- No verifiable contracts
- No collateral controls
- Weak counterparties
- Inconsistent volumes
- Unrealistic pricing expectations
Submit A Trade Finance Mandate
If you have a defined transaction with verifiable counterparties and documentation, submit your deal for feasibility review.