Structured Trade Finance
This is term used to describe various financing techniques or even restructuring techniques. I.e. any structure that isolates assets/goods being financed from the originator and used to support the financing being raised as collateral/source of disbursement. Common structured trade finance deals include: a. Back to back Letters of credit where the beneficiary of an LC offers the same as security to establish another LC (secondary LC) in favor of his supplier b. Structured pre-shipment finance which enable purchase of inputs for a production process and is backed by an LC c. Warehouse finance which enables purchase of raw material for processing, grading, packing and export d. Stock Financing. Here a producer obtains liquidity by leveraging his inventories well before goods are sold on the market
Product Features
Maximum or minimum is based on underlying contract
Works best with non-Funded facilities like LCs and guarantees whose fees and commissions will be as per tariff
If there is a disbursement of funds, interest will be charged as per applicable interest rates
Maximum tenor of 180 days
The facility is self-liquidating
Flexible security requirement depending on integrity of the drawee and tenor.
Benefits
Access to financing where no other financing is in place
Financing is tuned to a producer’s production and trade cycle
Minimal Security requirements
Minimal Security requirements
Its tailor made to suite the client’s needs
Requirements
Financial Card
Tailor made deals will be based on the customer needs
Application
