Structured Trade Finance (STF) is a transaction-backed financing solution designed for businesses moving commodities, raw materials, and large-scale goods across borders. Instead of relying on traditional bank lending, STF structures funding around the trade itself — using assets like inventory, receivables, or Letters of Credit to unlock capital.
The goal? Give you the cash flow to buy, move, and sell commodities without tying up your balance sheet.
How Does It Work?
- The Deal is Assessed — Lenders analyze the transaction, looking at the goods, the buyer, the supplier, and the risks.
- The Structure is Built — Funds are secured using trade instruments like LCs, prepayment finance, or collateralized facilities.
- The Money Moves — The lender releases funds directly to the supplier, ensuring the goods are shipped.
- The Deal Closes — Once the goods are delivered and sold, repayment is made through the transaction proceeds.
Who Uses Structured Trade Finance?
- Commodity Traders — Buying and selling crude oil, metals, or agricultural products.
- Importers & Exporters — Companies needing extended payment terms to manage cash flow.
- Manufacturers — Businesses that need working capital to purchase raw materials.
If you’re moving large quantities of goods and waiting on payments, this is your solution.
What Are the Costs?
Like any form of financing, STF comes with structuring fees, interest rates, and collateral requirements.
- Origination Fees: 1% — 3% of the transaction value.
- Interest Rates: 8% — 15% per annum.
- Collateral: 30% — 100% secured via cash, receivables, or goods.
Deals that are too risky, lack clear repayment sources, or involve unreliable buyers? They don’t get funded.
The Bottom Line
If you’re serious about trading, you already know access to capital separates the winners from everyone else. Structured Trade Finance is what keeps serious players in the game — funding bulk transactions, ensuring suppliers get paid, and keeping deals moving without tying up all your cash.
If you want in, make sure your deal is structured properly, your numbers add up, and you’re ready to move fast.
