Trade Finance Note Terms & Disclaimers

1. Overview

This document explains how Financely issues trade finance notes for import-export deals, commodity transactions, and project finance. It covers the regulatory framework, underwriting timelines, our internal risk rating, and clarifies that no funding is guaranteed. By engaging with Financely, all parties acknowledge and agree to these provisions.


2. Types of Transactions

Import-Export Deals

  • Typically involve purchase orders, commercial invoices, letters of credit, and bills of lading
  • May include factoring or discounting of receivables
  • Collateral often consists of goods in transit or warehouse receipts


Commodity Transactions

  • Cover agricultural goods, metals, or energy products
  • Can include spot or forward contracts, or the use of warehouse receipts


Project Finance

  • Spans real estate, infrastructure, and other large-scale ventures
  • Capital is released based on defined milestones, feasibility studies, and budget approvals


Each note is structured on a case-by-case basis, reflecting unique jurisdictional and collateral requirements.


3. Regulatory Framework

Financely structures trade finance notes in accordance with applicable U.S. securities laws, including the Securities Act of 1933. Where relevant, we rely on exemptions such as Regulation D or Regulation S. Transactions are offered only to eligible parties (e.g., accredited investors or qualified purchasers) under applicable regulations. We assume no liability for meeting any foreign legal requirements unless expressly stated in separate agreements.


4. No Guarantee of Funding

Financely makes no promise that any transaction will close or secure funding. An application may be declined at any time if the underwriting or compliance process identifies risks outside our thresholds. We are not liable for any costs or damages arising from a declined application.


5. Underwriting Process

  1. Initial Documentation: Prospective borrowers or issuers provide financial statements, KYC information, and relevant project or transaction details. Any red flags related to AML, sanctions, or default history are grounds for rejection.
  2. Risk Assessment: We analyze asset quality, collateral, transaction structure, and sponsor or borrower track records. Collateral documents (e.g., letters of credit, warehouse receipts) must be valid and enforceable.
  3. Internal Review: A credit committee or senior reviewer evaluates feasibility, repayment sources, and potential returns. A preliminary risk score is assigned based on market factors, jurisdictional stability, and track record.
  4. Final Approval: If approved, Financely issues a term sheet detailing coupon rates, loan-to-value ratios, tenors, and security arrangements. Definitive documentation must be signed before any note is issued.


6. Internal Risk Rating

Financely’s internal risk rating system classifies each transaction by creditworthiness, market volatility, collateral strength, jurisdiction, and compliance history. This rating is solely for internal use and is not disclosed publicly. A higher rating does not imply approval or guarantee, and a lower rating does not automatically disqualify a deal if mitigations are in place.


7. Timelines

  1. Preliminary Review
    Typically takes 7 to 14 business days from receipt of complete materials.
  2. Due Diligence
    May last 30 to 90 days, depending on complexity and responsiveness.
  3. Finalization
    After underwriting clearance, legal and compliance checks may require an additional 10 to 30 days. Actual funding depends on investor commitments and may be delayed or canceled if unforeseen issues arise.


8. Risk Acknowledgment

Participation in trade finance notes carries the risk of loss, including loss of principal. Financely does not offer guarantees of returns, and no statement within our materials should be considered a binding forecast. Participants must conduct their own due diligence and seek independent professional advice.


9. Disclaimer of Liability

  1. No Suitability Advice
    Financely does not act as a fiduciary or provide personalized investment advice. Each party bears responsibility for deciding whether a note aligns with their objectives.
  2. No Tax or Legal Guidance
    We are not tax advisors or legal counsel. Consult qualified professionals before committing funds or signing contracts.
  3. Force Majeure
    Financely is not liable for delays or failures in performance caused by events beyond our control, including regulatory changes, economic disruptions, or natural disasters.
  4. No Third-Party Beneficiaries
    These disclaimers protect Financely and the parties to a transaction only. No one else may claim rights under these terms.


10. Acceptance & Amendments

By entering a transaction involving trade finance notes with Financely, all parties agree to comply with these terms. Financely reserves the right to amend this document at any time. Any changes take effect upon publication or notification to relevant participants.