Supplier Settlement
Finance qualifying supplier payments before the importer has converted inventory or collected from downstream buyers.
Trade and Supply Chain Finance Program
Mobilizing Capital for Global Trade
Financely's Trade and Supply Chain Finance Program structures and arranges funded and unfunded credit solutions for importers, exporters, commodity traders, manufacturers, distributors and financial institutions.
The program combines trade loans, revolving facilities, documentary credit support, credit guarantees arranged through third-party providers, risk participation, insurance and supply-chain finance. Financely structures the transaction and coordinates the placement of capital and risk with banks, private credit funds, insurers and other institutional counterparties.
Submit a Trade Finance Transaction 01
Identifiable Trade
Defined goods, counterparties, value, payment terms and commercial purpose.
02
Financing Requirement
Clear facility amount, tenor, utilization mechanics and use of proceeds.
03
Repayment Source
Buyer settlement, receivable collection, inventory conversion or another documented exit.
04
Institutional Diligence
KYC, KYT, contracts, logistics and transaction economics available for review.
Private Capital Mobilization
A Trade Can Be Bankable and Still Require More Capacity
Documentary limits, country exposure, collateral constraints, portfolio concentration and working-capital timing can prevent an otherwise viable transaction from being executed. Financely structures the credit architecture and brings additional funding, guarantees, insurance or risk participation into the transaction.
Program Objectives
What the Program Is Designed to Finance
The program addresses liquidity and risk gaps throughout the procurement, shipment, inventory, delivery and settlement cycle. Each facility is structured around the underlying commercial transaction and the risk that needs to be financed or transferred.
Pre-Shipment Liquidity
Fund eligible procurement, manufacturing, aggregation or logistics prior to export and buyer settlement.
LC Risk Capacity
Structure additional risk capacity around documentary credits, confirmation requirements and eligible issuing-bank exposure.
Borrowing Base Liquidity
Finance qualifying inventory through advance-rate structures, collateral reporting and controlled repayment mechanics.
Post-Shipment Finance
Advance liquidity against eligible invoices, approved account debtors and contracted payment obligations.
Supplier and Distributor Finance
Introduce working capital around established anchor buyers, suppliers, distributors and recurring procurement programs.
Core Products
Financing and Risk Solutions Within the Program
Financely determines which layer of the transaction requires liquidity, guarantee capacity, insurance or distribution. Products can be deployed independently or combined within a broader structured trade finance facility.
Credit Enhancement
Credit Guarantee Arrangements
Financely can structure transactions where an eligible third-party guarantee provider assumes an agreed portion of defined credit exposure. The guarantee can support incremental lending capacity where the underlying institution requires additional protection against borrower, bank or transaction risk.
Coverage, beneficiaries, trigger mechanics and recourse depend on the guarantee provider and the underlying transaction documentation.
- Partial or defined credit-risk coverage
- Support for eligible bank or borrower exposures
- Additional capacity for participating lenders
- Transaction-specific guarantee structure
- Independent provider underwriting
- Integration with funded trade facilities
Working Capital
Revolving Trade Finance Facility
A revolving facility provides reusable capacity for companies executing recurring purchases and sales. Availability can be linked to approved transactions, receivables, inventory or a defined borrowing base.
Principal repaid from completed trades becomes available for future eligible utilization within the commitment period and subject to facility conditions.
- Reusable borrowing availability
- Transaction eligibility criteria
- Import and export drawdowns
- Inventory and receivables borrowing bases
- Controlled collection accounts
- Recurring facility reporting
Risk Sharing
Trade Finance Risk Distribution
An originating institution can retain the customer relationship while distributing portions of funded or unfunded exposure to additional institutional participants.
Distribution can help manage single-obligor limits, country exposure, sector concentration or internal portfolio constraints while preserving origination capacity for additional transactions.
- Funded risk participation
- Unfunded risk participation
- Trade credit insurance
- Syndicated trade facilities
- Portfolio concentration management
- Additional institutional risk capacity
Documentary Credit
LC Confirmation and Bank-Risk Support
Documentary trade can require additional capacity when a confirming institution has limited appetite for a particular issuing bank, jurisdiction, tenor or transaction amount.
Financely can structure and place risk participation around eligible LC-supported trades and coordinate with banks, insurers and other risk providers according to the transaction.
- Issuing-bank exposure analysis
- Confirmation capacity
- Sight and usance transactions
- UPAS-related structures
- Reimbursement-risk analysis
- Secondary distribution of eligible trade assets
Working Capital
Supply Chain Finance
Supply chain facilities can provide liquidity around approved commercial obligations between buyers, suppliers and distributors. Structures are developed around the underlying anchor relationship and settlement mechanics.
The program can address the financing requirements of upstream suppliers and downstream distributors while retaining a direct link to identifiable commercial flows.
- Approved payables finance
- Supplier finance
- Distributor finance
- Receivables finance
- Inventory finance
- Anchor-led working-capital programs
Program Underwriting
Capital Follows a Documented Trade Flow
Financing capacity depends on more than the face value of a purchase contract or documentary instrument. Participating institutions evaluate the commercial counterparties, goods, transaction economics, logistics, bank exposure, collateral, repayment path and enforceability of the proposed structure. Financely prepares the transaction around these underwriting requirements before institutional distribution.
Underlying Trade
Goods, quantity, price, Incoterm, purchase contract and corresponding sale.
Counterparties
Supplier, buyer, borrower, issuing bank, confirming bank and material intermediaries.
Transaction Economics
Gross margin, financing cost, working-capital cycle and sensitivity to price or execution changes.
Repayment Source
Buyer payment, LC proceeds, receivable collection, inventory liquidation or another identifiable source.
Risk Allocation
Borrower risk, bank risk, country risk, performance risk, commodity risk and logistics exposure.
Transaction Controls
Account control, collateral reporting, title documentation, insurance and other lender protections.
Eligible Transactions
Trade Flows the Program Can Evaluate
Eligibility depends on the underlying credit and transaction profile. Industry classification alone does not determine financing capacity.
Contracted physical commodity purchases, inventory and resale.
Eligible refined products and other documented physical energy trades.
Base metals, concentrates, refined metals and industrial mineral flows.
Agricultural commodities, food products and established supply chains.
Raw materials, components and industrial input procurement.
Cross-border equipment purchases supported by identifiable counterparties.
Recurring inventory procurement and receivables conversion cycles.
Multi-supplier or distributor programs anchored by established buyers.
Transaction File
Documents Generally Required
A complete transaction file allows participating institutions to reconstruct the trade, assess the credit exposure and understand precisely how their capital will be repaid.
Company profile and ownership structure
Financial statements and management accounts
Requested facility amount and tenor
Sources and uses of financing
Purchase contract or purchase order
Sales contract or offtake agreement
Supplier information
Buyer information
Product specifications
Shipment and logistics schedule
Incoterms and payment terms
Documentary credit terms where applicable
Receivables ageing where applicable
Inventory reports where applicable
Existing banking facilities
Insurance documentation
Historical trade turnover
Transaction cash-flow model
KYC documentation
Relevant KYT and logistics evidence
Financely Process
From Trade Requirement to Institutional Placement
Financely structures the financing request before approaching institutions. The objective is to present lenders and risk providers with an executable credit proposition rather than an unstructured request for capital.
01
Assess
Review the trade, counterparties, requested facility, economics, logistics and repayment source.
02
Structure
Determine funded exposure, guarantee requirements, collateral, tenor and risk allocation.
03
Prepare
Build the credit package, transaction model, data room and institutional presentation.
04
Mobilize
Approach banks, funds, insurers and risk participants aligned with the mandate.
05
Execute
Coordinate diligence, credit approval, term sheets, documentation and closing.
Capital and Risk Mobilization
One Transaction Can Use Several Sources of Capacity
The program is built around institutional coordination. Different participants can assume different layers of the financing and risk structure according to their mandates.
01
Commercial Banks
Trade loans, documentary credits, confirmation, reimbursement and revolving working-capital facilities.
02
Private Credit
Structured trade facilities, borrowing bases, inventory finance and non-bank working capital.
03
Insurance Markets
Eligible non-payment, trade-credit and selected political-risk coverage.
04
Guarantee Providers
Third-party credit support for qualifying borrower, transaction or bank exposures.
05
Risk Participants
Funded and unfunded participation in eligible trade-finance exposures.
06
ECAs and Development Institutions
Eligible transactions may incorporate export-credit or development-finance support where available.
Transaction Architecture
How Risk Capacity Unlocks Additional Trade
Financing gaps can occur at different points in the trade cycle. The program identifies the constrained exposure and introduces additional capital or risk capacity where it can have the greatest effect on execution.
Customer Relationship
An existing bank may originate the trade facility while retaining responsibility for the borrower relationship.
Incremental Capacity
A guarantee, insurance policy or risk participation can reduce the originating institution's retained exposure.
Additional Liquidity
Banks or private credit providers can participate in the funded portion of eligible transactions.
Trade Execution
The importer, exporter or trader uses the facility for approved procurement and transaction-related costs.
Commercial Settlement
Delivery generates the contractual payment that forms the primary repayment source for the transaction.
Controlled Cash Flow
Collections can flow through designated accounts and repay participating financing providers according to the structure.
Documentary Trade
Bank Risk Can Be a Separate Underwriting Exposure
In LC-supported transactions, the commercial buyer and seller are only part of the credit architecture. Confirmation, discounting and reimbursement also create exposure to issuing and confirming institutions. The program can structure risk participation where bank limits prevent an otherwise acceptable documentary trade from proceeding.
Issuing-Bank Appetite
Available credit line against the institution issuing the documentary credit.
Confirmation Line
Capacity of the confirming institution to assume issuing-bank and relevant country exposure.
Reimbursement Risk
Credit exposure arising between settlement of a complying presentation and receipt of reimbursement.
Tenor
Sight, deferred payment, usance and UPAS structures create different duration and funding requirements.
Documentary Conditions
Presentation requirements must remain executable within the actual shipment and logistics process.
Secondary Distribution
Eligible trade assets can be distributed to additional participants according to institutional appetite.
Program Advantages
Structure the Constraint Before Looking for Capital
The program approaches trade finance as a credit-allocation problem. Financely identifies the precise financing or risk bottleneck and builds a structure that can be evaluated by institutions with the appropriate mandate.
01
Broader Capital Base
Transactions can be presented beyond a borrower's incumbent banking relationships.
02
Risk Decomposition
Separate borrower, bank, transaction, commodity and country risks rather than treating them as one exposure.
03
Credit Enhancement
Introduce qualifying guarantees, insurance or participation where additional protection is required.
04
Structured Liquidity
Build funded facilities around receivables, inventory, contractual payments and controlled cash flows.
05
Institutional Packaging
Prepare the transaction around underwriting criteria before distribution to financing counterparties.
06
Execution Coordination
Coordinate the financing parties through diligence, credit approval and closing.
Related Trade Finance Resources
Explore the Transaction in Greater Detail
The program can incorporate several specialist structures. Review Financely's technical resources for adjacent transaction and instrument-specific information.
Frequently Asked Questions
Trade and Supply Chain Finance Program
Program eligibility and structure depend on the underlying transaction, borrower, counterparties, jurisdictions and the specific form of financing or risk capacity required.
What is Financely's Trade and Supply Chain Finance Program?
Financely's Trade and Supply Chain Finance Program is a
transaction structuring and capital mobilization platform
for eligible import, export and supply-chain financing
requirements. Financely evaluates the underlying trade,
structures the proposed facility and approaches suitable
banks, private credit providers, insurers, guarantee
providers and other institutional counterparties.
Does Financely issue the credit guarantee?
No. Where a transaction requires guarantee capacity,
Financely can structure and arrange the requirement through
an eligible third-party provider. The guarantee provider
independently determines whether to approve the exposure
and establishes the final coverage, documentation and terms.
Is Financely the lender under the program?
Financely acts as a corporate finance adviser and arranger.
Funded facilities are provided by participating third-party
banks, private credit funds and other financing institutions
subject to their independent underwriting and approval.
Can the program support letters of credit?
Potentially. Financely can evaluate transactions involving
documentary credits, confirmation requirements, issuing-bank
exposure, reimbursement risk and financing associated with
eligible LC-supported trade flows.
Can the program support an LC when the confirming bank has insufficient limits?
The program can evaluate whether additional risk participation,
insurance or other eligible third-party capacity could address
a confirmation-line constraint. Any participating institution
remains responsible for its own credit and compliance decision.
What is a revolving trade finance facility?
A revolving trade finance facility provides reusable
working-capital capacity for eligible recurring transactions.
Borrowings are drawn for qualifying trades and repaid from
the corresponding commercial collections. Repaid principal
can become available for subsequent transactions during the
commitment period subject to the facility terms.
What does risk distribution mean in trade finance?
Risk distribution allows an originating financial institution
to share portions of an eligible trade-finance exposure with
additional participants. Distribution can be funded or
unfunded and can help the originator manage country,
obligor, bank or portfolio concentration while maintaining
the underlying customer relationship.
Can private credit funds participate in the program?
Yes. Eligible private credit providers can participate in
structured trade facilities, borrowing bases, commodity
finance, inventory finance, receivables finance and other
working-capital structures that fall within their investment
mandate.
Can banks participate as capital or risk providers?
Yes. Financial institutions can potentially participate as
originating lenders, funding banks, confirming institutions,
risk participants, distribution counterparties or providers
of other qualifying trade-finance products.
What is supply chain finance under the program?
Supply chain finance covers financing structures linked to
established commercial relationships between anchor buyers,
suppliers and distributors. Depending on the transaction,
structures can include approved-payables finance, supplier
finance, distributor finance, inventory finance and
receivables finance.
Can the program support commodity trades?
Potentially. Commodity trade finance can be structured around
purchase contracts, inventory, title documents, logistics,
contracted resale and controlled cash flows. The commodity,
counterparties, transaction economics and jurisdiction are
reviewed before lender placement.
What makes a transaction suitable for the program?
Strong transactions generally have identifiable commercial
counterparties, clear goods or services, documented purchase
and sale terms, commercially viable margins, a defined
financing requirement and an identifiable repayment source.
Final eligibility remains subject to the criteria of the
participating institutions.
How do I submit a transaction?
Submit the requested financing amount, company information,
goods, supplier, buyer, payment terms, transaction size,
financing tenor and available transaction documentation.
Financely can then evaluate the mandate and determine the
appropriate program structure.
Submit a Trade Finance Transaction to the Program
Provide the facility amount, underlying goods, supplier and buyer, payment terms, transaction tenor, existing banking structure and the financing or risk constraint that needs to be solved. Financely can assess the transaction, structure the appropriate credit solution and coordinate placement with suitable institutional counterparties.
Submit the TransactionFinancely provides corporate finance advisory, transaction structuring and capital arrangement services on a best-efforts basis. Financely is not a bank, direct lender, insurer, deposit-taking institution or issuer of bank guarantees or documentary credits. Any loans, guarantees, letters of credit, insurance policies, risk participations or other financial products referenced under the Trade and Supply Chain Finance Program are provided by eligible third-party institutions subject to their own underwriting, KYC, AML, sanctions, legal, compliance and credit requirements. Financely does not guarantee funding, issuance of any instrument, credit approval or transaction completion.