Trade Finance Equity Bridge Loans

Trade Finance Equity Bridge Loans

Trade Finance Equity Bridge Loans

When a shipment, LC, or receivables facility needs to move and collateral is not in place yet, we arrange an equity-backed bridge. Funds sit in escrow, releases follow milestones, and investors receive a measured equity participation or conversion right. The bridge carries you to LC issuance, receivables discounting, or an ABL takeout without double pledging assets.

Where This Fits

Pre-LC Costs
Supplier deposits, inspection, freight, insurance, or LC advising before a bank issues the LC or UPAS structure.
Margin Top Up
Short collateral to post a cash margin for an LC, SBLC, or performance instrument.
Working Capital Gap
Cash cycle gap between shipment and receivables takeout or insurance payout.
Program Ramp
Bridge until a borrowing base or SCF program is set and audited.

How It Works

1

Underwrite The Takeout

We validate the exit source such as LC issuance, receivables discounting, insured open account, or ABL. Contracts, buyer quality, routes, and insurance are checked.

2

Lock Use Of Proceeds

Funds are held in escrow. Draws pay named invoices for deposits, freight, inspection, and insurance. No unrelated payables. Each draw has supporting documents.

3

Protect The Bridge

Assignment of funded contracts, notice to buyers, and controlled collection accounts. Negative pledge prevents reusing the same receivables or inventory elsewhere.

4

Repay Or Convert

On takeout, the bridge repays from LC proceeds, receivable collections, or ABL availability. If delayed past the long stop date, an agreed equity participation or conversion right applies.

Controls And Safeguards

Cashflow Controls
  • Escrowed disbursements tied to milestones
  • Blocked collection accounts with daily sweeps
  • Use of proceeds certificates and bank statements
  • Monthly reporting on shipments and receivables
Legal Protections
  • Assignment of sales contracts and receivables with notice
  • Negative pledge to avoid a double pledge
  • Intercreditor language where programs coexist
  • Step in rights on funded contracts if milestones fail

Who Qualifies

Applicant
Importers, exporters, and distributors with post revenue status and a defined trade program.
Documents
Sales contracts, buyer KYC, shipment plan, insurance, and a clear exit route to LC, receivables discounting, or ABL.
Equity Plan
Sponsor equity to share risk and align incentives. Warrants or conversion terms set at mandate.

Indicative One Column Term Sheet

Terms
Facility: Equity linked bridge for trade transactions at parent or SPV level
Ticket Size: USD 2,000,000 to USD 25,000,000 per mandate
Tenor: 3 to 9 months, extension by agreement with step pricing
Pricing: 11% to 15% per year pay rate based on risk, controls, and exit visibility
Equity Participation: Warrants or conversion right equal to 1% to 3% fully diluted, sized to tenor and risk
Use Of Proceeds: Escrowed payments for supplier deposits, freight, inspection, insurance, LC advising, or margin top up as per approved budget
Security And Controls: Escrow, assignment of funded contracts and receivables with notice, controlled collection account, negative pledge, monthly reporting
Exit Sources: LC proceeds, receivables discounting or forfaiting, insured open account collections, ABL availability
Fees: Financely structuring and underwriting 1.5% to 3.0% of face value, non refundable. Investor fees and bank fees are handled directly with each provider and are outside our scope

Request A Trade Equity Bridge Proposal

Share your contracts, routes, shipment schedule, and exit plan. We will respond with a structure, pricing range, and closing steps.

Start Your Mandate

Financely acts as arranger and underwriter. Financely is not a bank and does not issue letters of credit or make loans. All transactions depend on due diligence, KYC and AML screening, investor approval, and executed documentation. The term sheet is indicative and not binding.

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.

Express Application Submit Your Deal
Request a Proposal
Request a Proposal / Submit a Deal

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.

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Project 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.

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Acquisitions

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.

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For 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 Request

Once 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.

Still Have Questions? Schedule a Consultation

If you still have questions after visiting our FAQ and Procedure pages, we invite you to book a paid consultation for personalized guidance. A $250 USD fee applies per session.