Trade Finance for SMEs Importing Commodities in Africa
Trade Finance for SMEs Importing Commodities in Africa
Small and mid-sized enterprises (SMEs) across Africa play a critical role in supplying fuel, fertilizer, grain, steel, cement, and industrial inputs. Yet despite real demand, most of these importers lack the structured trade finance tools needed to compete—especially when supplier terms require confirmed payment instruments or deposits.
Financely provides structured trade finance solutions tailored for African SMEs importing commodities. Our process supports short-term, self-liquidating instruments such as standby letters of credit (SBLCs), documentary letters of credit (DLCs), UPAS LC structures, and margin financing for LC issuance.
Typical Problems Faced by SME Importers
- Supplier requires an LC or SBLC from a top-tier bank
- Local banks demand 100% cash margin to issue a credit instrument
- Delays at port or in customs due to unavailable funds at sight
- Working capital tied up in one transaction while others stall
Our Trade Finance Solutions
| Instrument | Description | Typical Tenor |
|---|---|---|
| Standby Letter of Credit (SBLC) | Payment guarantee issued to the supplier, callable on default | 90–180 days |
| Documentary Letter of Credit (DLC) | Payment upon presentation of shipping documents | 60–180 days |
| UPAS LC | Supplier paid at sight, buyer repays at deferred maturity | 90–180 days |
| Margin Financing | Bridge facility to fund LC issuance collateral requirements | 30–90 days |
How We Work
Financely underwrites your trade transaction based on the buyer, seller, commodity, and documentation. If the deal structure is sound, we engage our funding partners to:
- Issue or confirm the SBLC/DLC via a Tier 1 or Tier 2 bank
- Support UPAS structures that allow deferred buyer settlement
- Raise margin financing if your liquidity is tied up elsewhere
- Coordinate closing, compliance, and disbursement directly
What We Require
- Pro forma invoice or commercial contract with verified supplier
- Importer corporate documents and KYC
- Bank account able to handle credit instrument documentation
- Clear understanding of delivery timeline and payment terms
Eligible Commodities
We support trade finance for a wide range of essential goods, including:
- Fuel (diesel, PMS, LPG)
- Agricultural inputs (fertilizer, grain, animal feed)
- Construction materials (steel, cement, clinker)
- Industrial and mining inputs (reagents, spare parts)
Why Financely?
- Access to over 180 capital providers including confirming banks and structured trade desks
- Support for SPVs and first-time borrowers with verifiable trades
- Transparent terms—underwriting fees disclosed upfront
- Full execution support from structuring to disbursement
Need structured trade finance for a commodity import into Africa? Financely helps SMEs secure LC instruments, margin funding, and short-term credit to execute real deals.
Request Trade Finance SupportFinal Notes
SMEs importing commodities into Africa shouldn't be excluded from global trade due to lack of liquidity or local bank constraints. Financely supports credible importers with structured access to international trade finance—allowing you to move cargo, pay suppliers, and manage cash flow with confidence.
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.
