Trade Finance Strategy Advisory

1. Why A Strategy Beats Deal‑By‑Deal Fire‑Fighting

Every commodity trader knows the drill: markets spike, margins wobble, and bank limits vanish overnight. Scrambling for whatever line is still open feels heroic in the moment, yet spreads balloon, documents clash, and operations teams burn out chasing discrepancies. A clear trade finance strategy turns chaos into a repeatable funding machine. It maps where working‑capital pain hits, nails the collateral story, and line‑matches facility types to trade cycles so liquidity shows up when cargo moves.

We have watched firms with billion‑dollar turnover run balance sheets off spreadsheets stitched together the night before a board call. Risk officers yell, Treasury begs for capacity, deal desks cut volumes to survive. That is value slipping through the cracks. A strategy blueprint fixes the pipeline, locks the lenders, and frees up the trading floor to chase margin—not money.

2. Core Pain Points We Tackle

• Funding Gap Mismatch – Pay suppliers cash‑on‑shipment, get paid 60 days after discharge. Balance sheets groan, banks balk.
• Collateral Leakage – Warehouse receipts mis‑issued, field audits late, banks slash advance rates.
• Documentation Overload – Invoices, B/L, inspection certs float in email silos; LC discrepancies pile up.
• Counterparty Concentration – Two anchor buyers soak up all credit limits, lenders push back.
• Sanctions & Compliance Traps – Emerging‑market routing changes trip red flags, banks freeze transfers.
• Hedging Disconnect – Price shocks move faster than collateral haircuts; margin calls drain cash the plan never counted.

3. Our Advisory Playbook

We do not write PowerPoint decks and walk away. We embed with treasury, operations, and trade desks, then build a funding map that lenders and funds can underwrite. Every step outputs tangible artefacts—data tapes, borrowing‑base models, collateral control maps, policy drafts—so your strategy lives in systems, not slogans.

3.1 Trade‑Flow Diagnostics

• Pull shipment data, payment terms, and credit notes from the last 12‑24 months.
• Tag each leg by Incoterm, vessel days, warehouse dwell, and settlement currency.
• Heat‑map working‑capital peaks by route, product, and season.

3.2 Collateral & Risk Mapping

• Classify collateral forms (B/L, warehouse receipt, cargo policy, credit insurance, SBLC).
• Score control strength (negotiable vs non‑negotiable docs, pledged vs earmarked stock).
• Stress test price moves, delivery delays, and buyer defaults.

3.3 Facility Mix Design

• Match short‑cycle flows to receivable discounting or LC discount lines.
• Route long‑haul, high‑value cargo through borrowing‑base revolvers with monitored stock.
• Layer pre‑export finance where offtakers are investment grade but producers need cash months earlier.
• Add SBLC back‑stops or credit insurance to lift advance rates without over‑pledging collateral.

3.4 Lender & Fund Target List

• Map appetite by commodity, region, tenor, and collateral type.
• Highlight advance‑rate sweet spots and covenant red lines for each counterparty.
• Structure a phased engagement plan—pilot line first, scale after track record.

3.5 Documentation & Workflow Fix

• Draft LC / SBLC templates aligned to Incoterms and title transfer points.
• Set up digital document capture and automated discrepancy checks.
• Integrate collateral manager feeds into treasury dashboards.

3.6 Policy & Governance Alignment

• Update credit lines policy—limits, haircuts, risk triggers.
• Set board‑level funding and hedging authority thresholds.
• Introduce sanctions escalations and routing override rules.

3.7 Implementation & Lender Roadshow

• Package data room for lenders—audited financials, trade tapes, collateral control statements.
• Run term‑sheet negotiations, covenant trade‑offs, and pricing rounds.
• Close pilot facilities, monitor performance, and roll into expansion tranches.

4. Outcomes Clients See

• Working‑capital coverage jumps by 10‑25% within six months as new lines open.
• Average advance rates climb because collateral strength is documented, not assumed.
• LC discrepancy rates drop when doc workflows sync with carrier and inspection feeds.
• Counterparty risk spreads compress as concentration caps and insurance layers show banks real downside cover.
• Board confidence grows, freeing traders to chase margin instead of chasing wires.

5. Price Tiers & Scope

Tier	Advisory Fee (USD)	Best For	Key Deliverables	Timeline*
Tier 1: Rapid Gap Scan	25 000	Mid‑size traders needing a focused diagnosis before annual credit reviews	3‑year shipment & cash‑gap heat‑map Facility mix snapshot vs gaps Top 15 fix actions One lender intro call	4 weeks
Tier 2: Funding Blueprint	60 000	Firms targeting fresh lines or lender diversification within 12 months	Everything in Tier 1 Collateral control & risk map Borrowing‑base & LC template kit Draft policy updates Short‑list of 6‑10 lenders/funds Term‑sheet coaching	8‑10 weeks
Tier 3: Full‑Throttle Execution	120 000+	High‑turnover commodity groups or producers scaling internationally	Everything in Tier 2 Integrated treasury dashboard build Live lender data room & ongoing Q&A On‑site collateral manager setup Term‑sheet negotiation & credit committee support Up to 3 facility closings (success fee separate)	12‑16 weeks

Variable & Success Fees

• Success fee on closed facilities: 0.75% – 1.75% of line size, scaled by complexity and tenor.
• Travel & third‑party costs: at cost with pre‑approval.
• Dashboard or system integrations beyond base scope: custom quote.

*Timeline starts once complete data pack and retainer are in. Delays in data delivery push dates.

6. Our Edge

• Ex‑trade bankers and risk officers who have sat on both sides of the table.
• Live lender pulse—daily calls with banks, private credit funds, and insurers active in metals, agri, energy.
• Collateral control partners on call—field warehouse, inspection, and platform API feeds.
• Document tech stack—optical capture, discrepancy flagging, sanctions screening built in.
• Plain‑spoken advice—no jargon, no sugar‑coating. We tell you if the trade flow will fly or flop.

7. Engagement Flow

• Step 1 – Intro Call: Scope fit, tier pick, ballpark data list.
• Step 2 – Mandate & Retainer: Sign, invoice, kick‑off.
• Step 3 – Data Pull: Secure upload link; we ingest ERP, shipment logs, bank statements.
• Step 4 – Workshops: Treasury, ops, risk, and trade desks in the room. We map pain points, dig into real deals.
• Step 5 – Draft Outputs: Heat maps, collateral matrix, facility design deck. Management feedback loop.
• Step 6 – Final Roadmap & Go‑Live: Board pack, lender pack, policy changes. Optional execution support.

8. Success Metrics We Track

• New capacity secured (USD or local currency equivalent).
• Advance‑rate uplift vs prior season.
• Average financing cost drop post execution.
• LC discrepancy ratio change quarter‑on‑quarter.
• Time from shipment to cash collected.

9. Frequently Asked Questions

Do you arrange funding too?

Yes. Strategy first, execution next. Once the roadmap lands, we can step in under a placement mandate to run lender and fund outreach, negotiate term sheets, and close lines. The advisory fee can roll into a blended arrangement cost if agreed up front.

What commodities do you cover?

Grains, oilseeds, softs, base and precious metals, energy products, coal, fertilizers, and niche industrial minerals. If it ships in bulk or ISO tanks, we have probably structured it.

Do you work with new traders?

We need at least one full season of audited numbers and shipment history to build a credible funding story. Start‑ups can engage, but expect extra groundwork.

Will banks honour your models?

We build borrowing‑base and cash‑gap models the way credit teams review them—inputs trace back to trade docs and bank statements. That transparency speeds credit committee sign‑off.

Can you integrate with our ERP?

Tier 3 covers API hooks to most modern ERPs and trade platforms. Legacy or in‑house builds may need custom middleware. Case by case.

10. Ready To Fix Your Funding Pain?

Chasing money line by line is exhausting. Build a plan lenders believe, close capacity before the market moves, and let your traders focus on price not paperwork. Talk to us. We will shoot straight, move fast, and leave you with a playbook that works when markets turn ugly.

Financely Group provides advisory and arrangement services. We are not a deposit‑taking bank and do not lend on our own balance sheet. Advisory outputs depend on the accuracy and completeness of data supplied by the client. All engagements require an executed mandate, KYC, sanctions screening, and an advisory retainer. Success fees apply only if execution support is engaged and facilities close. Market conditions, lender risk appetite, and regulatory changes can affect capacity, pricing, and timing. Misrepresentation or withheld information can trigger termination and reporting under AML and CTF rules.