Revolving Trade Finance Facility Term Sheet
Repeatable financing for established importers, exporters, commodity traders, manufacturers and distributors with recurring, verifiable trade flows.
One facility for recurring trade flows
A revolving trade finance facility is designed for companies that repeatedly purchase, move and sell goods. Instead of arranging a separate loan for every shipment, eligible transactions are funded, repaid and replaced within an approved facility limit.
Financely combines trade finance facility structuring with lender placement, borrowing-base design, transaction due diligence and closing coordination. The objective is an executable structure supported by real contracts, real goods, identifiable counterparties and controlled cash flows.
This programme is intended for established companies. Applicants should have recurring transaction volume, credible financial information, an organised data room and sufficient liquidity to fund the portion of each trade that falls outside the lender's advance rate.
Where the facility fits
Receivables and borrowing bases
Eligible invoices can support a revolving borrowing base after applying debtor limits, ageing rules, dilution reserves and advance rates. Companies with long buyer payment terms may also review our receivables lending solutions.
Inventory and transaction finance
The facility may fund identifiable inventory, supplier payments and goods moving through an approved supply chain. The lender must be able to verify ownership, location, insurance and the expected route to sale.
Pre-export and import finance
Contracted exports, supplier invoices and approved purchase orders may support utilisation where the trade cycle and repayment source are demonstrable.
Commodity trade finance
Petroleum, metals, agricultural commodities and other physical goods may qualify where the counterparties, logistics, margins and documentation satisfy institutional underwriting.
LC-supported transactions
Documentary letters of credit, confirmed payment instruments and eligible bank obligations can form part of the collateral or repayment structure.
Short-term funding gaps
For transactions requiring temporary capital before a receivable, refinancing or LC payment is available, review Financely's short-term trade finance facilities.
Indicative term sheet
The following terms provide a framework for preliminary discussions. Final terms are determined by the lender after underwriting and are documented in the lender's formal term sheet and facility agreement.
| Facility type | Revolving trade loan, borrowing-base facility, receivables purchase, inventory facility, pre-export facility or forward-flow purchase programme. |
|---|---|
| Facility amount | Minimum USD 5 million. Facilities of USD 250 million and above may be considered through bilateral lenders, lender clubs, syndication, participation or institutional forward-flow capacity. |
| Eligible borrower | Established importers, exporters, commodity traders, manufacturers, distributors, originators and lender-approved SPVs. |
| Availability period | Commonly 12 to 36 months, subject to credit approval, annual review, compliance and satisfactory performance. |
| Individual transaction tenor | Commonly 30 to 180 days. Transactions of up to 360 days may be considered where the underlying cycle supports the longer tenor. |
| Eligible currencies | USD, EUR, GBP and other lender-approved currencies. |
| Advance rate | Determined against the eligible borrowing base after exclusions, concentration limits, ageing rules, reserves and asset-specific adjustments. For further context, see our borrowing-base financing overview. |
| Repayment | Assigned receivable collections, buyer payments, LC proceeds, inventory sale proceeds or other controlled transaction cash flows. |
| Security | First-ranking security over eligible receivables, inventory, collection accounts, transaction proceeds, relevant contracts and insurance rights. Guarantees and an SPV share pledge may be required. |
| Pricing | Applicable reference rate plus lender margin, or a discount rate for purchased receivables. Pricing depends on jurisdiction, credit quality, collateral, tenor, insurance and transaction performance. |
| Recourse | Full recourse, limited recourse or non-recourse, depending on the structure, obligor risk, insurance and enforceability of the financed assets. |
| Governing law | English law, New York law or another lender-approved legal system with enforceable assignment, security and insolvency procedures. |
Forward-flow agreements with lenders
Financely has forward-flow agreements and recurring origination arrangements with trade finance lenders and institutional capital providers. These relationships provide a defined route for presenting qualifying borrowers and recurring pools of trade assets for financing.
A forward-flow agreement can support repeat funding under predetermined eligibility criteria, concentration limits and reporting standards. It does not create automatic approval. Every borrower, jurisdiction, counterparty and transaction pool remains subject to lender underwriting, compliance, available capacity and definitive documentation.
Jurisdiction and SPV structure
Jurisdiction
The borrower, buyers, suppliers, goods and payment flows must be located in jurisdictions acceptable to the lender. Transactions may be considered across North America, the United Kingdom, Europe, selected GCC markets, Asia-Pacific, Africa and Latin America where security can be enforced and compliance can be completed.
Sanctioned persons, prohibited goods, comprehensively embargoed jurisdictions and unverifiable payment chains are not eligible.
Special purpose vehicle
An SPV may be required when receivables are transferred, assets must be isolated from the operating company, or the lender requires a bankruptcy-remote forward-flow structure. Potential jurisdictions include England and Wales, Delaware, Ireland, Luxembourg, Singapore, DIFC, ADGM and Mauritius.
One standard SPV setup is included within the USD 175,000 package where required. The SPV cannot be used to avoid regulation, tax disclosure, beneficial-owner verification or other compliance obligations.
The complete upfront transaction package
One defined package covering the standard process from mandate acceptance through lender underwriting, documentation and closing.
Request a QuoteActivates assessment, structuring, the data room, credit preparation and lender-fit analysis.
Activates lender placement, forward-flow allocation, due diligence and term-sheet coordination.
Activates the standard SPV, documentation, security, accounts and closing process.
No separate standard Financely closing fee
Within the defined scope, the USD 175,000 package replaces separate Financely RFQ, mandate, structuring, due-diligence coordination and standard closing-management fees. Each instalment becomes non-refundable when its corresponding stage begins.
What is included in the USD 175,000
| Advisory, structuring and placement | USD 50,000 | The Financely mandate, facility design, borrowing-base framework, lender memorandum, forward-flow allocation, lender presentations, commercial negotiations and overall transaction management. |
|---|---|---|
| Lender underwriting reserve | USD 30,000 | Standard lender diligence deposits, financial review, transaction verification, counterparty analysis and support for the lender's credit process. |
| Legal and documentation reserve | USD 25,000 | Standard legal coordination, ordinary document review, security and assignment support, closing checklists and the initial documentation budget within the standard scope. |
| One standard SPV | USD 20,000 | Assessment, incorporation coordination, standard corporate documents, registered-office setup, initial company administration and account structure for one ordinary SPV where required. |
| Collateral verification | USD 15,000 | Standard receivables, inventory, contract, shipping-document and borrowing-base verification, normally completed remotely. |
| KYC, AML, sanctions and KYT | USD 10,000 | Standard screening of the borrower, beneficial owners, management, counterparties, goods, vessels where applicable, transaction routes and payment chain. More information is available through our KYT in trade finance page. |
| Accounts and collateral control | USD 10,000 | Collection-account design, reserve mechanics, cash waterfall, account-control coordination and initial reporting flow. |
| Insurance and inspection coordination | USD 5,000 | Standard insurance-requirement review, broker coordination, policy assignment support and ordinary remote inspection coordination. |
| Closing and first utilisation | USD 10,000 | Conditions-precedent management, execution coordination, funds flow, closing calls and support for the first eligible utilisation. |
| Total package | USD 175,000 | The complete standard upfront transaction package. Allocations may be rebalanced between workstreams where necessary to complete the agreed standard scope. |
What the package delivers
Institutional transaction preparation
We convert the financing request into a lender-ready mandate covering the borrower, trade cycle, counterparties, facility structure, borrowing base, security and repayment mechanics. This includes the core work normally associated with trade finance transaction packaging.
Financial and commercial diligence
The standard review covers financial statements, management accounts, bank statements, existing debt, receivables, payables, historical trade volume, transaction margins, buyers, suppliers, purchase orders, invoices and core contracts.
Compliance and transaction verification
Standard KYC, AML, sanctions and KYT coordination is included. We assess beneficial ownership, counterparties, goods, transaction routes and payment flows before the file is positioned for lender underwriting.
Borrowing-base construction
Financely develops the proposed eligibility rules, advance-rate logic, ageing limits, reserves and concentration framework required to determine how much capital can be drawn against the approved asset pool.
Lender placement and negotiation
The package includes lender selection, forward-flow allocation, presentations, credit responses, term-sheet coordination and negotiation support. Financing remains subject to lender underwriting and available capacity.
Documentation and closing control
Financely coordinates the standard SPV, security, assignments, controlled accounts, insurance requirements, conditions precedent, funds flow and first utilisation through closing.
Costs outside the fixed package
The USD 175,000 is the standard upfront transaction package. It is not the cost of the capital itself and it cannot absorb charges controlled by the selected lender, insurer, bank, government authority or an expanded transaction scope.
Facility economics
Lender interest, discount, unused commitment fees, utilisation fees and origination or participation fees are separate. Lender origination and commitment fees may indicatively range from 0.50% to 2.50% of the facility, depending on structure and size. These economics are disclosed in the lender's term sheet.
Borrower contribution
The borrower remains responsible for the portion of each transaction not covered by the lender's advance rate, together with any required cash margin, reserve account, first-loss position or insurance deductible. These amounts are capital requirements rather than Financely fees.
External operating costs
Insurance premiums, LC issuance, confirmation, SWIFT charges, correspondent banking, foreign exchange, hedging, taxes and government duties remain separate because they depend on actual utilisation and third-party pricing.
Expanded or exceptional scope
Additional SPVs, several legal jurisdictions, extensive physical inspections, laboratory reports, independent ratings, securitisation, regulatory licensing and extraordinary lender counsel are outside the standard package. Any additional requirement will be disclosed before it is authorised.
Conditions precedent
The facility does not become available merely because a term sheet has been issued. The borrower must satisfy the lender's corporate, financial, commercial, compliance and security requirements before closing.
Corporate approval
The borrower must provide verified ownership, corporate documents, board approvals, good-standing evidence and any licences required for the trade.
Financial and trade evidence
The lender receives acceptable financial statements, management accounts, bank records, contracts, invoices, purchase orders and historical trade information.
Security and insurance
Security documents, assignments, controlled accounts, required insurance and collateral-control arrangements must be valid and enforceable.
Closing confirmation
There must be no default, sanctions issue or material adverse change. The closing checklist, funds flow and first utilisation must be approved.
From request to first utilisation
Request a quote
Submit the facility amount, trade volume, goods, jurisdictions, buyers, suppliers, payment terms and available collateral.
Structure the mandate
Financely prepares the data room, borrowing base, credit presentation, facility structure and proposed lender allocation.
Underwriting and terms
Relevant lenders assess the file, complete due diligence and issue indicative or formal financing terms.
Document and close
The parties complete the SPV, security, controlled accounts, conditions precedent and first eligible utilisation.
Before applying, prospective clients should review Financely's standards for structured finance mandates and ensure that the required documentation, counterparties and transaction budget are available.
Request a Revolving Trade Finance Facility Quote
Submit the requested facility amount, annual trade volume, jurisdictions, goods, buyers, suppliers, payment terms and available collateral. If the mandate qualifies, Financely will issue the engagement documentation for the USD 175,000 standard transaction package.