Trade Finance Fundability Assessment

1. Why Fundability Matters In Structured Trade And Commodity Finance

Trade banks and commodity credit funds pay when documents line up, collateral is controlled, and counterparties clear compliance. Miss any link in the chain and your LC gets cut, your borrowing base haircuts explode, or your shipment sits unpaid. Fundability is the credibility gap between what your trade contract says and the proof you can show across invoices, transport docs, warehouse receipts, and payment flows. Close that gap and credit lines move. Leave it open and you burn weeks while spreads widen.

2. Where Trade Finance Deals Blow Up Early

• Incoterm Confusion – Contract says FOB but shipping docs read CIF. Banks stall while risk sits in limbo.
• Title Transfer Ambiguity – Bills of lading not consigned correctly. Who owns the cargo at drawdown?
• Collateral Leakage – Warehouse receipts non negotiable or issued by weak operators. Lenders cut advance rates.
• Counterparty Credit Gaps – Buyer financials dated, no credit reports, sanctions hits unresolved.
• Performance Risk – No track record on volume or quality. Offtaker triggers discount rights.
• FX And Payment Mismatch – Revenue currency not matched to debt currency. Margin gets chewed up.
• Compliance Flags – Dual use goods, restricted jurisdictions, or politically exposed parties buried in the chain.

3. What We Test In A Trade Finance Fundability Review

• Contract & Incoterm Review(risk transfer, payment triggers, substitution rights).
• Documentary Pack Quality(invoices, B/L, warehouse receipts, inspection certs, insurance, export docs).
• Counterparty Credit File(financials, ratings where available, trade refs, D&B style pulls).
• Collateral Control & Trackability(collateral managers, hedging links, inventory turnover, title docs).
• Cash Conversion Cycle Map(days inventory, transit, collection; funding gap sizing).
• Sanctions / AML / Trade Control Screen(ownership traces, restricted cargo, routing risks).
• Commodity Price & Margin Stress(hedge coverage, basis risk, liquidity if margin calls hit).
• Funding Structure Fit(LC issuance, SBLC backstops, pre export finance, borrowing base, receivables discounting).

4. Scoring Framework Banks And Funds Recognize

We score six pillars on a 0 to 5 scale and weight them by transaction type (pre export, inventory repo, tolling, receivables, offtake prepay). Weighted scores roll into a 100 point Fundability Score that signals how hard or easy your trade will be to fund.

• Counterparty Strength
• Performance & Delivery Risk
• Documentary & Operational Quality
• Collateral Security & Control
• Liquidity & Cash Gap Coverage
• Compliance & Regulatory Exposure

5. Deliverables That Move Funding Conversations Forward

• PDF Scorecard with pillar ratings and total Fundability Score.
• Document Gap Matrix showing what banks will ask for and what is missing.
• Trade Flow Map(cargo, title, payment steps) with risk transfer points marked.
• Collateral Coverage Grid(advance rates vs quality of control and market liquidity).
• Cash Gap & Working Capital Model sizing how much external funding is needed when.
• Compliance Flag Log(sanctions, export control, AML hits, dual use alerts).
• Funding Path Options ranked by speed, cost, and security packages required.
• 60 Minute Readout Call to review gaps and map funding next steps.

6. Pricing Tiers (Flat Fees; Scope Assumptions Below)

Tier	Fee (USD)	Best For	Includes	Typical Turnaround
Tier 1: Trade Quick Scan	5 000	Early read before you call a trade bank	Up to 20 core docs (contract, spec, draft invoices, sample B/L) Incoterm sanity check Basic sanctions name screen Top 10 risk / doc fixes	5 business days once data lands
Tier 2: STCF Prep Pack	12 500	Borrowers preparing to request LC lines, pre export finance, or borrowing base	Everything in Tier 1 Document pack completeness review Counterparty credit snapshot Collateral control review (warehouse, title, insurance) Cash gap sizing model Draft bank presentation checklist	10 business days
Tier 3: Full Structured Trade Readiness	20 000	Larger multi shipment or multi jurisdiction commodity trades headed for syndication	Everything in Tier 2 Detailed performance risk workup Advance rate scenarios and covenant stress Compliance & routing review (embargo, dual use, export control) Funding path memo with lender / fund short list (indicative fit)	15 business days (complex chains may extend)

Scope Assumptions

• Single commodity stream or bundled group with common terms. Multi commodity programs priced on review.
• Shipment values and volumes available for at least one recent season or trade cycle.
• Data pack under 5 GB. Larger uploads or scanned legacy docs can extend timing.
• Fees include one revision round after readout. Extra rounds billed hourly.

7. Engagement Flow

• Inquiry Call(no charge, 20 minutes) to size trade, jurisdictions, and tier fit.
• Mandate + Retainer signed; invoice issued; KYC launch.
• Secure Data Intake for contracts, specs, invoices, shipping docs, collateral info.
• Analytical Work by our trade finance desk; external experts looped in where needed (inspection, collateral management, legal).
• Draft Score & Gap List posted to portal; client comment window opens.
• Final Pack & Readout Call delivered; funding pathways reviewed.
• Optional Funding Mandate – move straight into arranging SBLCs, LC confirmations, pre export facilities, borrowing base lines, or receivables discounting using our lender and fund network.

8. When To Order A Trade Finance Fundability Assessment

• Before you request LC or SBLC capacity from a bank.
• Pre negotiation of a long term offtake or supply contract where credit support will be required.
• After repeated documentary discrepancies or LC refusals from banks.
• When moving from unsecured open account trading to secured structured facilities.
• In advance of a borrowing base or pre export finance syndication.
• Board request for trade credit exposure review across multiple routes.

9. Quick FAQ

Is this a replacement for bank underwriting?

No. Banks and funds still underwrite. Our work shows you where they will push back so you fix it first.

Do you issue LCs?

No. We do not issue or confirm LCs. We coordinate with regulated banks, credit insurers, and commodity funds to arrange them once your file is ready.

Can the assessment fee roll into a funding mandate?

Often yes. A portion of your assessment spend can be credited against our arrangement retainer if you hire us to secure financing. Case by case.

Multi jurisdiction trade flows?

Yes. Provide routing details and we will flag sanctions, export control, and documentation differences by lane.

What if data is messy?

Send what you have. We mark the gaps and tell you what lenders will need before they commit capacity.

Financely Group provides advisory and capital arrangement services in trade and commodity finance. We are not a bank and we do not take deposits or issue our own letters of credit. Assessments are diagnostic reviews, not audit opinions, legal advice, inspection certificates, or guarantees of funding. All work is subject to executed engagement terms, advisory retainer, KYC, sanctions screening, and compliance with applicable trade and export control laws. Fees shown assume the scope described; multi commodity, multi jurisdiction, or forensic document work will require amended pricing. Deliverables depend on the accuracy and completeness of materials supplied by the client. Any subsequent effort to secure funding (SBLCs, LCs, pre export, borrowing base, receivables, or other facilities) remains subject to approval by third party lenders, insurers, and counterparties. Misrepresentation or withheld information can trigger termination and reporting under AML and CTF rules.