Finance procurement, manufacturing or supplier costs against genuine contracted demand.
Structured Trade Finance
Connecting Capital With Trade Assets
Physical trade creates financeable assets. Our role is to structure those assets into transactions that banks, private credit funds and specialist trade finance providers can underwrite.
We work across commodity inventory, purchase orders, shipments, receivables and contracted trade flows. Financely identifies where capital can enter the transaction, structures the credit proposition and distributes eligible mandates to suitable funding sources.
Trade Assets
The Trade Cycle Creates Multiple Financing Opportunities
A trade transaction changes form as it moves from order to settlement. Before procurement, the underlying asset may be a signed purchase order. After procurement, the lender may finance identifiable inventory. During transportation, the transaction may be supported by shipping documents, title and insurance. Once delivery occurs, the resulting receivable can become the financeable asset.
Our trade finance transaction structuring process maps each stage and determines where capital can enter with the strongest combination of collateral, documentation and repayment visibility.
Use identifiable physical goods as the basis for revolving or transactional working capital.
Structure financing around controlled shipments, title documents and contractual delivery obligations.
Convert completed sales into liquidity before the buyer reaches its contractual payment date.
Asset-Based Credit
A Trade Asset Gives Capital a Defined Purpose
A general working capital request asks a lender to underwrite the borrower primarily from its balance sheet and operating cash flow. Structured trade finance can create a different credit proposition. Capital may be tied directly to the acquisition, movement or conversion of a specific asset.
The lender can then evaluate the underlying transaction. Who supplies the goods, who purchases them, where the inventory is located, who controls title, how the commodity is valued and where the repayment proceeds originate all become part of the credit case.
Our Process
From Commercial Trade to Financeable Credit
We do not begin by circulating a generic funding request. We first establish how the trade works, identify the financeable asset and build a structure that can be evaluated by the appropriate capital provider.
Establish the Transaction
We review the applicant, financing requirement, buyer, supplier, product, jurisdictions, transaction economics and operating cycle.
Identify the Trade Assets
Purchase orders, inventory, shipping documents, receivables and contractual proceeds are mapped through the trade cycle.
Build the Credit Structure
We determine where financing enters, what supports repayment and which controls can protect the capital provider.
Prepare for Underwriting
The transaction is presented through a clear credit package covering counterparties, assets, economics, security and repayment mechanics.
Match the Capital Source
Eligible mandates are distributed to banks, trade finance providers and private credit funds that fit the transaction.
Manage the Financing Process
We coordinate lender questions, diligence, structuring discussions and execution through documentation and closing.
Underwriting
Each Asset Creates a Different Credit Case
The strongest financing structure depends on which asset exists at the point capital is required and how effectively the lender can verify and control it.
| Trade Asset | Supporting Evidence | Underwriting Focus | Potential Structure |
|---|---|---|---|
| Purchase Order | Purchase order, sales contract, supplier agreement and production schedule. | Buyer quality, order validity, supplier capability, margins and fulfillment risk. | Purchase order financing |
| Inventory | Title documents, warehouse records, inspections, insurance and collateral reports. | Ownership, location, marketability, value, volatility and collateral control. | Commodity inventory financing |
| Shipment | Bills of lading, insurance, inspection certificates and commercial contracts. | Title transfer, logistics, delivery conditions, counterparties and settlement. | Shipment or structured trade finance |
| Receivable | Invoice, delivery evidence, buyer acceptance and payment history. | Buyer credit, concentration, disputes, assignment and collection mechanics. | Commodity receivables financing |
The Same Cargo Can Support Capital at Several Stages
Consider a physical commodity trader purchasing a cargo for delivery to an established buyer. Before procurement, the signed sales contract may establish demand. Once the commodity has been purchased, physical inventory may become collateral. During shipment, the financing can rely on controlled title and transport documents. After delivery, the buyer's payment obligation becomes a receivable.
The commercial transaction remains the same, but the financeable asset changes as the cargo moves through the supply chain. We assess where the strongest lender position exists and structure the financing around that point.
This asset-led approach is central to commodity trade finance because capital often needs to revolve through procurement, storage, transportation and settlement rather than remain outstanding as a conventional corporate term loan.
Capital Sources
The Structure Determines Which Capital Providers Fit
Different capital providers underwrite different risks. A commercial bank may prefer established borrowers and documentary trade facilities. A specialist trade finance provider may focus more heavily on the asset, counterparty and transaction controls. Private credit can support bespoke situations that require greater structural flexibility.
We identify the appropriate funding universe after the credit structure is established. This prevents transactions from being distributed to capital providers whose mandate is fundamentally incompatible with the asset, jurisdiction or required tenor.
Bank and Trade Finance Capital
Eligible transactions may use documentary letters of credit, import facilities, export facilities, inventory lines, receivables finance or borrowing-base structures.
Businesses requiring recurring capacity can also use our trade finance facility structuring services to build a facility around ongoing transaction volumes rather than financing shipments independently.
Private and Alternative Credit
Private credit can be appropriate where a borrower requires bespoke collateral analysis, non-standard transaction controls or capital outside a conventional bank facility.
Eligible commodity transactions may also use structured debt for commodity trades where the lender can underwrite identifiable assets and defined contractual cash flows.
Financing Structures
One Supply Chain Can Support Several Structures
There is rarely one universal financing product for an entire trade cycle. The appropriate structure depends on when capital is required, what asset exists at that moment and how repayment proceeds can be controlled.
Fund procurement or production before goods are shipped to the buyer.
Advance capital against eligible goods held under defined collateral controls.
Calculate revolving availability against eligible inventory, receivables or both.
Finance buyer payment obligations after delivery has taken place.
Fund supplier costs required to perform against a confirmed customer order.
Support payment obligations between buyers and sellers through documentary bank instruments.
Combine asset security, controlled cash flows and transaction-specific covenants.
Place eligible transaction exposure with capital providers seeking trade-related credit opportunities.
Commodity Supply Chains
Financing Can Scale With Recurring Trade Flows
A trader executing one transaction may require transactional financing. A business moving the same commodity every month may require something more durable. Once transaction history, counterparties and collateral controls are established, financing can potentially be structured as a revolving facility or borrowing base.
Our structured trade finance for commodity supply chains work focuses on building repeatable capital structures around recurring physical trade rather than treating every cargo as an isolated funding request.
Initial Assessment
What We Need to Evaluate a Transaction
The initial submission should clearly establish the commercial transaction. We need to understand what is being purchased, who is buying it, how much capital is required, when repayment occurs and what assets exist during the financing period.
Commercial Terms
Product, quantity, purchase price, sales price, countries, Incoterms and transaction timeline.
Buyer and Supplier
Legal entities, jurisdictions, relationship history and contractual roles.
Financing Requirement
Facility amount, currency, tenor, applicant contribution and required funding date.
Collateral Position
Purchase orders, inventory, receivables, warehouse controls and other available security.
Evidence of Trade
Contracts, invoices, transport documents, inspections, licenses and supporting commercial records.
Cash Conversion
Buyer payment mechanism, expected settlement date and proposed control of financing proceeds.
Finance a Trade Asset
Submit the financing amount, commodity or product, purchase and sales contracts, counterparties, transaction timeline, collateral position and repayment structure. We will assess whether the transaction can be structured and distributed to suitable trade finance capital providers.
Financely provides structured finance, trade finance advisory and capital
distribution services. Financely is not a bank or direct lender and does
not itself commit capital. Financing availability, structure, advance
rates, pricing, collateral requirements and closing remain subject to
transaction eligibility, applicant credit quality, counterparty review,
KYC, AML and sanctions screening, lender underwriting, due diligence,
definitive documentation and final approval.