Trade Finance Program Setup And Bank Paneling For New Supply Chains
Ideal clients want a bankable route to ship and get paid on time. We build the operating model, structure the instruments, panel issuer and confirmer banks, align credit insurance where it reduces cost, and run issuance to first draw. If the route will not clear as proposed, we say so and reset the structure before you spend.
Who This Is For
Exporters and importers building new corridors, commodity traders launching offtake or supply lanes, EPCs, OEMs, and distributors that need a repeatable program rather than ad-hoc fixes.
Typical Triggers
New sourcing region, new buyer set, changes in bank appetite, sanctions and RMA hurdles, working capital gaps, beneficiary demanding confirmation, fragmented documentation.
Target Outcomes
Confirmed route to term sheets, clean ISP98 or URDG 758 wording, confirmation capacity, receivables purchase or AP options, FX and cash control mapped, discrepancy rates kept low.
What You Receive
Program Architecture
- Working capital design across sight, usance, UPAS, and discounting paths.
- Instrument toolkit: LC under UCP 600, SBLC under ISP98, demand guarantees under URDG 758, avalised drafts where appropriate.
- Reimbursement map with MT742, MT103, MT202 COV routes and cut-offs aligned to shipment plans.
- Receivables purchase under MRPA and approved payables frameworks with eligibility grids and collections control.
Execution To First Draw
- Issuer, adviser, and confirmer bank paneling with fee letters and acceptance tracking.
- Beneficiary pre-acceptance of wording, RMA checks, and SWIFT issuance sequencing.
- Discrepancy cure playbook, document templates, and training for logistics and finance.
- Post-close support for the first reporting cycle and KPI baseline.
Risk And Cash Controls
- Account control, assignment of proceeds, and SPV options where ring-fencing is required.
- Credit insurance placement brief with lender-acceptable endorsements.
- Sanctions screening workflow across counterparties, vessels, and ports.
- FX policy tied to value dates, hedging windows, and collateral calls.
Bankable Paper
- Clean LC and SBLC drafts with objective draw statements, fixed expiries, and presentation rules.
- Fee schedules and term sheets lenders will read.
- Data room with contract chain, transport plan, insurance scheme, and compliance packs.
Program Blueprint
| Dimension |
What We Set |
| Commercial Terms |
Incoterms, tolerances, latest shipment dates, presentation periods, originals count, inspection and insurance mentions tied to risk transfer. |
| Instrument Selection |
Confirmed LC, UPAS, SBLC for payment or performance, advance payment guarantee, warranty bond, demand guarantees where local practice prefers them. |
| Bank And Insurer Route |
Issuer selection with the buyer, advising bank with fast auth, confirmation capacity plan, unfunded risk participation to widen limits, insurance to reduce cost where it helps. |
| Treasury And FX |
Currency of settlement, hedge ladder, margining, value date control, and holiday calendars aligned to reimbursement. |
| Collections And Liquidity |
Receivables purchase eligibility, concentration caps, lockbox or controlled accounts, waterfall and refund mechanics for credit notes. |
| Governance |
Approval limits, stop-ship triggers, discrepancy KPIs, and quarterly reviews with banks and underwriters. |
Indicative Terms Bands We Target
LC And Confirmation
0.50% to 3.50% per annum by issuer quality, country risk, tenor, and wording complexity. Advising and SWIFT are one-off charges.
UPAS And Usance Discount
Base plus 250 to 650 bps depending on tenor and bank risk. We set funded or unfunded participations where that tightens price.
Receivables Purchase
Discount and program fees set by buyer grade, jurisdiction, and collections control. Eligibility and dilution reserves documented.
Execution Timeline To First Draw
- Weeks 1–2.
Intake, counterparty and corridor map, sanctions screen, draft LC and SBLC texts, reimbursement path, initial bank soundings.
- Weeks 3–4.
Panel selection, fee letters, MRPA or AP framework, insurance indications, FX and cash policy, SOPs and RACI issued.
- Weeks 5–6.
Beneficiary pre-acceptance, RMA checks, first issuance via MT760, MT767 if needed, presentation rehearsal and settlement drill.
- Weeks 7–8.
First shipment, presentation, reimbursement tracking, discrepancy cure if any, KPI baseline and handover to steady-state cadence.
Eligibility And Exclusions
Eligible
- Verifiable trade with clean counterparties and directors available for KYC.
- Willingness to assign proceeds and operate controlled accounts where required.
- Acceptance of objective wording and standard presentation rules.
Not Supported
- Paper trading, instrument “monetisation,” or circular flows.
- Sanctions exposure or refusal to disclose ownership and source of funds.
- Beneficiaries that will not pre-accept objective drafts and delivery method.
KPIs We Track
Execution Quality
Time to first issuance, discrepancy rate, days to reimbursement, value date leakage.
Capacity And Cost
Issuer and confirmer headroom by corridor, insurance limits, discount rates against benchmarks.
Cash Conversion
Sales-to-cash days, discount cost per unit, working capital impact versus baseline.
Frequently Asked Questions
Can we launch a corridor without historic shipments
Yes, with real contracts, clean wording, confirmation capacity, and controls over proceeds. Early files often blend confirmed LCs with receivables purchase to stabilise cash.
What reduces confirmation cost the most
Issuer quality, objective draw statements, shorter tenors, and pre-agreed documents. Credit insurance can widen limits and sharpen price when written to lender standards.
Do we need an SPV
Only when ring-fencing, assignments, or account control are needed to clear credit committees or investors. We set it only if it improves execution or price.
Set Up A Bankable Trade Finance Program
Send the contract pack, target markets, shipment plan, and tenor. We will return with the route, instruments, bank and insurer panel, and a delivery plan to first draw.
Start Structured Commodity Finance
Ranges are indicative. Any engagement is subject to know-your-customer checks, anti-money-laundering controls, sanctions screening, third-party reports, and approvals by banks and insurers. Nothing here is a commitment to lend, issue, or insure.