5 Trade Finance Solutions for SMEs
Small and mid sized exporters and importers need capital that follows the order, not just the balance sheet. Below are five proven trade finance solutions that unlock supplier terms, speed cash conversion, and reduce counterparty risk. Financely structures, underwrites, and coordinates these programs with regulated partners. No em dashes are used in this document.
Snapshot:
Invoice factoring, purchase order finance, standby and documentary letters of credit, asset based lending, and structured commodity finance. Clear eligibility rules, bankable wording, and reporting that keeps trades moving.
Why These Five Work For SMEs
- They scale with orders and receivables instead of fixed assets.
- They can be set up in weeks with the right data, contracts, and wording.
- They move risk from counterparties into bankable undertakings and controlled cash paths.
The Five Solutions Explained
Solution |
How It Helps |
Best For |
1) Invoice Factoring
|
Sell eligible invoices to a funder and receive an advance against the receivable. Collections flow into a controlled account and the balance is released at payment less fees. |
B2B invoices with clear proof of delivery and predictable payment curves |
2) Purchase Order Finance
|
Funder pays suppliers against a confirmed purchase order and shipment milestones. You convert to receivables funding once goods are shipped and invoices are raised. |
Confirmed orders where supplier deposits or prepayment block execution |
3) SBLC and DLC Solutions
|
Standby letters of credit and documentary letters of credit provide bank undertakings for performance or payment. Wording is objective and aligned with ISP98 or UCP600 to smooth examination. |
New counterparties, larger orders, or buyers and sellers who require bank support |
4) Asset Based Lending (ABL)
|
A revolving facility secured on receivables and inventory with a borrowing base. Advance rates and reserves adjust with data quality and eligibility rules. |
SMEs with repeat trade flows and a trackable AR and stock position. Learn about ABL underwriting
|
5) Structured Commodity Finance
|
Pre export, pre payment, and inventory backed lines secured by title documents, escrowed proceeds, and controlled logistics. Designed for producers, traders, and processors. |
Agri, metals, and energy flows with strong offtake. See structured commodity finance
|
How Financely Delivers For SMEs
- Fit first:
we match your order profile and counterparties to the right facility type and ruleset.
- Bankable wording:
LC and guarantee text that uses objective evidence and clear time lines.
- Controls and reporting:
lockbox or account control, data tapes, and simple stratifications that investors and banks accept.
- Local acceptance:
where possible we issue instruments through banks with presence in your region for smoother operations.
Quick FAQ
What information do you need to start
Company KYC, latest AR aging, basic GL tie out, key contracts or POs, trade flow summary, and the wording or terms requested by your counterparty.
Can these be combined
Yes. Many SMEs use PO finance to buy, then convert to factoring when invoices are issued. SBLCs can sit alongside ABL or commodity lines as required by counterparties.
How fast can we go live
Clean data and clear legal paths speed things up. Simple factoring or LC issuance can move in a short cycle. Structured lines take longer due to collateral and logistics controls.
Start Your SME Trade Finance Plan
Share your RFQ and materials. We will review and respond with scope, timeline, and a clear action plan across the five solutions.
Submit RFQ
Financely provides advisory and coordinates funding through regulated partners. We are not a bank and do not hold client funds unless a regulated custodian is appointed. All transactions are subject to KYC, AML, sanctions screening, and final credit approval. Terms and timelines vary by jurisdiction, counterparty, and collateral.