Trade Finance Term Sheet For Nigerian Importers, Exporters And Commodity Traders
Financely structures trade finance mandates for Nigerian companies with bankable import, export, commodity, inventory or receivables-backed transactions. We package the trade file, test lender appetite, support LC and guarantee structuring, and distribute eligible mandates to banks, trade finance lenders, private credit funds, commodity financiers and receivables investors.
Nigeria mandate fit: strongest files involve signed purchase contracts, pro forma invoices, confirmed buyers or suppliers, clear shipment terms, acceptable inspection controls, bankable payment routes, Form M or NXP readiness where applicable, and repayment from trade proceeds.
Standard Operating Procedure
Request A Proposal
Submit the trade transaction, buyer or supplier details, product, contract value, shipment route, funding need and repayment source. Start here to request a Nigeria trade finance proposal.
Transaction Review
Financely reviews the trade flow, documentation, counterparties, bank route, inspection controls, sanctions exposure, collateral, currency and repayment mechanics.
Engagement And Retainer
If the mandate is viable, Financely issues an engagement letter. After retainer payment, KYT, KYC, underwriting and lender distribution begin.
Structuring
We structure the LC, SBLC, guarantee, receivables, inventory, purchase order, export or commodity finance package based on the commercial transaction.
Lender Distribution
The mandate is distributed to banks, trade finance lenders, ABL lenders, commodity financiers, private credit funds and receivables investors.
Term Sheet And Closing
Lenders submit terms. The borrower accepts the best executable offer, completes documentation, satisfies closing conditions and receives the facility.
Eligible Trade Finance Structures
Documentary Letter Of Credit
LC structuring for Nigerian importers purchasing goods from offshore suppliers under UCP 600-style documentary terms.
SBLC And Bank Guarantee
Performance, payment, bid, advance payment or standby support for trade, supply and contract obligations.
UPAS LC And Deferred Payment
Supplier-paid-at-sight structures with deferred repayment by the importer where banks and counterparties accept the risk.
Pre-Shipment And Post-Shipment
Funding against export orders, invoices, bills for collection, confirmed receivables or offshore buyer payment flows.
Warehouse And Stock Finance
Facilities secured by controlled inventory, warehouse receipts, collateral management arrangements and insured goods.
Structured Commodity Finance
Transaction finance for oil products, agriculture, metals, inputs and other eligible commodities with inspection and payment controls.
Indicative Pricing
| Structure | Indicative Economics | Nigeria Use Case |
|---|---|---|
| Documentary LC | Bank and lender dependent. Often priced through issuance commission, confirmation fee, negotiation fee and funding margin where financing is attached. | Imports of equipment, FMCG, medical goods, raw materials, industrial inputs and commodity cargoes. |
| SBLC / Bank Guarantee | Indicative 1.50% to 6.00% p.a. commission range where collateral, counterparty and bank route support issuance. Higher-risk files priced case by case. | Payment security, performance obligations, bid support, advance payment security and supplier assurance. |
| UPAS LC | Base rate plus 3.50% to 8.00% p.a. equivalent where banks accept deferred importer repayment and supplier sight payment. | Importers needing supplier paid at sight while preserving working capital during the operating cycle. |
| Import Loan | 10.00% to 18.00% p.a. all-in for private credit trade loans, depending on collateral, tenor, product and repayment control. | Bridge finance for import payments, customs, logistics, supplier settlement and inventory turn. |
| Purchase Order Finance | 1.25% to 3.50% per 30 days, often priced as transaction finance. | Supplier payments, stock procurement, confirmed purchase orders and import execution. |
| Export Receivables Finance | SOFR / EURIBOR / SONIA + 4.00% to 10.00% p.a., or discount pricing based on obligor quality and payment route. | Export invoices, offshore buyer receivables, confirmed purchase contracts and collection-based repayment. |
| Inventory Finance | Base rate + 5.00% to 12.00% p.a., plus collateral management, insurance, warehousing and monitoring costs where applicable. | Controlled inventory, commodity stock, warehouse receipts, insured goods and collateral-managed cargo. |
| Structured Commodity Trade Finance | Quoted case by case. Pricing depends on commodity type, inspection, storage, buyer quality, margin, collateral control and logistics risk. | Oil products, agricultural exports, raw materials, metals, industrial inputs and repeat commodity flows. |
Pricing notice: all pricing is indicative and non-binding. Final terms depend on lender appetite, collateral, tenor, product, buyer and supplier quality, bank route, documentation, sanctions checks, FX risk, repayment control and closing conditions.
Condensed Nigeria Trade Finance Term Sheet
| Term | Indicative Position |
|---|---|
| Eligible Borrowers | Nigerian importers, exporters, commodity traders, distributors, manufacturers, contractors, oil and gas service firms, healthcare suppliers, agro-exporters and industrial buyers. |
| Eligible Instruments | Documentary LC, standby LC, bank guarantee, UPAS LC, bills for collection, receivables discounting, import loan, export loan, PO finance, inventory finance and structured commodity finance. |
| Eligible Trade Flows | Imports into Nigeria, exports from Nigeria, offshore supplier payments, confirmed buyer contracts, inventory-backed trade, receivables-backed trade and repeat commodity flows. |
| Currencies | USD primary. EUR, GBP, AED and other major currencies may be reviewed. NGN structures are case by case and depend on lender appetite, collections, convertibility and repayment control. |
| Tenor | Usually 30 to 360 days for trade cycles. Longer tenors may apply to equipment, deferred payment, structured import facilities or repeat borrowing bases. |
| Security Package | Cash margin, receivables assignment, inventory pledge, warehouse receipts, insurance assignment, collateral management agreement, account control, escrow, guarantees or buyer payment assignment. |
| Repayment Source | Buyer payments, export proceeds, receivables collections, resale proceeds, inventory liquidation, LC reimbursement, contract proceeds or controlled operating cash flow. |
| Distribution Targets | Banks, trade finance lenders, ABL lenders, commodity financiers, receivables investors, private credit funds, family offices and structured credit investors. |
Documents Required
| Category | Typical Documents |
|---|---|
| Transaction File | Purchase contract, sales contract, pro forma invoice, commercial invoice, packing list, bill of lading or airway bill, shipment schedule and Incoterms. |
| Nigeria Trade Documents | Form M for imports, NXP for exports, PAAR where applicable, customs documentation, inspection evidence and Authorized Dealer Bank correspondence. |
| Counterparty File | Buyer or supplier profile, purchase history, payment history, corporate records, sanctions screening details and contact information. |
| Borrower File | Corporate documents, ownership chart, KYC, audited accounts or management accounts, bank statements, tax records and debt schedule. |
| Collateral File | Inventory list, warehouse receipts, insurance, inspection reports, collateral management agreement, receivables aging and account control details. |
Financely Fees
| Mandate Type | Fee Position |
|---|---|
| RFQ Review | USD 500. Covers transaction file review and external consultation to assess lender or bank market interest. |
| Routine Trade Finance Mandate | Starting at USD 25,000 for LC, import finance, export finance, receivables finance or inventory-backed files with clear documentation and repayment route. |
| Complex Trade Mandate | Quoted case by case for commodity-linked, multi-jurisdiction, sanctions-sensitive, government, collateral-managed, deferred payment or structured trade facilities. |
| Third-Party Costs | Legal counsel, bank fees, inspection, collateral management, warehousing, insurance, escrow, due diligence, agency and verification costs are billed separately where required. |
Nigeria Trade Finance FAQ
Can Nigerian importers apply?
Yes. Financely reviews import finance, LC, UPAS LC, inventory finance and purchase order finance mandates where the importer has clear documentation, a credible supplier, defined goods and a bankable repayment route.
Can Nigerian exporters apply?
Yes. Exporters may be reviewed for pre-shipment finance, post-shipment finance, receivables discounting, export-backed loans and structured commodity finance where buyers, documentation and proceeds are bankable.
Can financing be in naira?
NGN financing is reviewed case by case. USD is the primary currency for most cross-border trade finance mandates. Local-currency structures depend on lender appetite, FX risk, convertibility, collections and repayment control.
Does Financely guarantee approval?
Financely guarantees the agreed advisory process within the signed mandate scope. Funding approval, pricing, advance rate, instrument issuance and disbursement remain subject to lender or bank underwriting, compliance and documentation.
What trade documents matter most?
Strong files usually include a signed trade contract, pro forma invoice, product details, buyer or supplier verification, shipment documents, Nigerian trade documentation, insurance, inspection controls and a credible repayment source.
How do we start?
Start with the RFQ. Submit the transaction summary, buyer or supplier details, product, shipment route, contract value, funding requirement, bank route, collateral and repayment source. You can request a Nigeria trade finance proposal for the initial review.
Request A Nigeria Trade Finance Proposal
Submit the trade contract, invoice, buyer or supplier details, product, shipment route, funding need, currency, bank route, collateral and repayment source.
Request A Trade Finance ProposalIndicative term sheet notice: The terms shown on this page are indicative, non-binding and subject to transaction review, lender appetite, bank approval, underwriting, KYC, KYT, AML, sanctions checks, collateral review, legal documentation and final credit approval. Financely provides commercial finance advisory, underwriting support, structuring support and capital placement coordination. All funding decisions, instrument issuance, lender terms, approval timelines and disbursements remain under the control of the relevant bank, lender, investor or financing counterparty.