Why Trade Finance Is an Ideal Fixed Income Investment
Why Trade Finance Is an Ideal Fixed Income Investment
Why Trade Finance Is an Ideal Fixed Income Investment
Seeking yield without taking on equity risk? Trade finance delivers real-economy exposure with short duration, secured transactions, and historically low default rates.
For fixed income investors, the market’s current offerings are thin. Yields are compressed. Risk-adjusted returns are volatile. But one strategy continues to outperform without grabbing headlines: private credit trade finance.
At Financely, we help investors participate in structured, secured trade transactions that generate strong fixed income yields with risk profiles that rival investment-grade debt.
Why Trade Finance Works for Fixed Income Portfolios
Short duration:
Typical deals range from 30–180 days
Self-liquidating:
Backed by real contracts and payment flows
Secured risk:
Credit enhancement via bank instruments, collateral, or insurance
Low correlation:
Uncorrelated to equity markets and rate volatility
Default Rates Are Remarkably Low
According to the ICC, trade finance has one of the lowest default rates across all credit products — averaging under 0.3% globally. That’s lower than high-yield bonds, syndicated loans, or most private credit strategies.
How Trade Finance Compares to Other Fixed Income Assets
Asset Class
Typical Yield (Net)
Duration
Security
Default Rate
Trade Finance (Private)
8%–14%
30–180 days
Secured by contracts/instruments
<0.3%
High-Yield Bonds
6%–10%
2–7 years
Unsecured or covenant-light
2%–5%
Syndicated Loans
5%–8%
3–5 years
Variable
2%–4%
U.S. Treasuries
3%–4%
1–30 years
Full faith and credit
Negligible
Who This Works For
Family offices
looking to replace duration-heavy fixed income
Private credit funds
seeking short-term exposure with strong security
Institutional allocators
diversifying their debt book
High-net-worth investors
wanting stable yield and capital protection
How to Invest in Trade Finance via Financely
Our fund gives investors access to curated trade transactions that have been fully underwritten, contract-backed, and vetted by our credit team. Capital is deployed into real-world deals — not paper trades — across Africa, LATAM, Asia, and MENA.
If you want yield without equity risk — and real cash flows without liquidity lockups — trade finance is the most overlooked fixed income opportunity on the market. At Financely, we make it accessible to serious investors through a disciplined, structured, and globally diversified fund model.
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using oursecure intake form, and receive a quotewithin 1-3 business days. Existing clients can connect with theirrelationship managerthrough oursecure web portal.
All submissions arepromptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500
is required upon completion of each form. This fee covers the time and effort we invest in reviewing
your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those
that carry this fee, ensuring serious applicants receive prompt attention.
Trade Finance
Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address
the challenge of global transaction risk through structured strategies that foster cross-border
growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.
Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive
ventures. We mitigate capital constraints by isolating project assets and focusing on risk
management. Provide your details to receive a structure that drives growth and maximizes returns.
Secure financing for business or real estate acquisitions. We ease transaction hurdles by
reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized
proposal that supports your strategic investment objectives.
Financely assists banks facing Basel III pressures by distributing trade finance deals and
providing collateral for letters of credit. We reduce capital burdens while preserving client
relationships and fostering service expansion. Submit your request to optimize your trade finance
offerings.
Once we receive your submission, our team will review your information to determine feasibility. If
eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ
and Procedure
pages for more information.
Disclaimer:
Financely provides financing based on due diligence and feasibility.
Approval is not guaranteed, and past performance does not predict future outcomes. All terms are
subject to review. Financely primarily assists with structuring and distribution. Qualified parties
carry out the project if the client approves the proposal.
Still Have Questions? Schedule a Consultation
If you still have questions after visiting ourFAQandProcedurepages, we invite you to book a paid consultation for personalized guidance. A $250 USD fee applies per session.
Important Resources
Popular Services
About Financely
Financely advises growth-focused businesses on accessing capital by introducing their opportunities to professional investors. Financely is not a securities broker or dealer. Where appropriate, engagements are coordinated with regulated broker-dealers, investment banks, legal counsel, and other specialists.
Financely does not solicit, offer, or accept orders to buy or sell securities and makes no assurance regarding capital-raising outcomes.
Services are strictly business-to-business. Financely does not provide personal finance, consumer credit, or retail advisory services.
Advisory services are reserved for post-revenue companies that recognize the time and resources required for professional underwriting.
All mandates start with an RFQ. We review submissions, issue a brief Go/No-Go memo, and where bankable, release a Term Sheet that leads to funding. We arrange capital across Senior Secured, Unitranche, Second Lien/Mezzanine, Preferred Equity, and Gap Solutions. We do not process deals by email or chat.
Trade Finance
Letters of Credit, Standby LCs, Confirmations, Receivables Finance, and Inventory Lines with control.
LCs and Confirmations
SBLC and Guarantees
AR/AP and Supply Chain
Funding arranged for trade flows with instruments sized to your cycle and aligned to delivery and settlement.
Move forward to secure working capital and keep goods moving. Submit the RFQ to start underwriting for funding.
KYC and Source of Funds required. Engagements are best-efforts and subject to underwriting. Preference for operating companies with meaningful revenue.
See our FAQ
and Procedure.
Financely Inc. (“Financely”) provides corporate-finance advice and is wholly owned by Aurora Bay Trust, a trust formed under Bahamian law, together with its authorized affiliates. Depending on deal structure, jurisdiction, and local rules, engagement may be carried out through Financely Group LLC, a non-deposit-taking non-banking financial company; Ashford Capital Advisory LLC; or another related entity. Financely and its affiliates are not registered as securities broker-dealers. When a mandate involves the purchase or sale of securities and a registered intermediary is required, all orders are introduced to and executed by a U.S. broker-dealer registered with the SEC and FINRA, acting as “chaperone” under SEC Rule 15a-6 (17 C.F.R. § 240.15a-6). Nothing here constitutes an offer, solicitation, or recommendation to buy or sell any security. Before proceeding, read our Terms of Service to confirm that engaging Financely Group LLC, Ashford Capital Advisory LLC, or any affiliate aligns with your legal and regulatory requirements.In the United States, we operate as anexempt foreign private adviserpursuant to the Dodd-Frank Act, subject to applicable exemptions from certain regulatory requirements. Our services and regulatory status may vary based on the location and nature of the transaction. Clickhereto download our brochure.