A specific type of finance known as "structured trade finance" is used to support business transactions including expansion, and unique business propositions. Structured trade finance solutions, in contrast to conventional forms of financing, are designed to meet the particular risks and complexities involved in business.
Structured trade finance typically involves the use of various financial instruments and techniques to provide financing, risk mitigation, and logistical support throughout the trade cycle. These instruments may include letters of credit (LCs), bank guarantees, trade credit insurance, supply chain finance, and commodity finance, among others.
Structured Trade Finance (STF) is a specialist and more complex type of finance, which is usually associated with commodity trading or other high value underlying products or large quantities. We usually see these types of finance set alongside the supplychain and able to be structured to work around terms agreed in large structured bilateral trading relationships.
It is most prevalent within the commodity sector and used by processors, producers, traders and end-users. However, the types of finance and security packages vary widely; as there is warehouse financing, borrowing base financing, processing or tolling and pre-export finance along with reserve based lending.
Interlink Capital’s team is specialized in providing structured financing solutions to provide competitive medium and long-term financing solutions by using commodities to achieve better financing terms and better risk profiles; and by providing open account finance to incr3ease betterment of working capital cycle.
Our expertise in the world’s financial markets and world-wide presence gives its trade finance clients access to capital markets and a powerful distribution platform for primary and secondary markets, thereby facilitating the successful syndication of trade loans.
Our teams of experts work closely with Export Credit Agencies (ECAs) and Private Risk Insurance companies (PRIs). The advantages of an ECA and/ or PRI covered transaction include availability in situations where stand-alone financing would not be feasible; relative long repayment periods, including a grace period; cover in most convertible currencies; fixed interest rate options; security of payments for suppliers; significant country risk mitigation; standardised documentation processes.
Structured Commodity Trade Finance (SCTF) at Interlink Capital covers commodity-collateralised trade-related finance structures in Emerging Markets and in OECD Markets.
The main products of SCTF depend or rely on self-liquidating cash flows produced or created from the trading of products to guide the finance structure and decrease associated credit and transfer risks.
We are leading in providing services to corporate and financial institution clients all over India with syndicated trade loans to finance cross-border purchases and/or sales of goods or services. Syndicated trade loans are provided by a group of lenders to a borrower.
They are well structured, well managed, and administered by one or several commercial or investment banks known as arrangers and because they allow the sharing of credit risk between various financial institutions they are a significant source of international financing.
Trade receivables are generated from the sale of goods or services to another company. Trade receivables finance enables a company to finance against these trade receivables in order to increase day-to-day cash flow, improve its ability to fulfill further orders and meet the daily operating costs of the business.
Our expert structured trade finance team can address client's’ needs, whether as arranger, underwriter, agent or distributor. We can tailor solutions to meet the client’s exact needs for all sizes of transactions.
Interlink Capital understands the value of structured trade finance in enabling companies to take advantage of new opportunities and skillfully handle the challenges of international trade. As a leading financial service provider, we offer an extensive range of structured trade finance options that are designed to meet the various demands of companies in various sectors.
Structured trade finance schemes provided by Interlink Capital encompass a range of financing instruments and these schemes include:
1] Export and Import Financing: We facilitate financing for both exporters and importers, ensuring smooth cash flow management throughout the trade cycle
2] Letters of Credit (LCs) and Bank Guarantees: We assist clients in structuring LCs and bank guarantees that comply with international standards while mitigating risks associated with non-payment or non-performance.
3] Supply Chain financing: We provide supply chain financing solutions that help businesses increase cash flow, optimize working capital, and fortify their bonds with customers and suppliers.
4] Structured Commodity Finance: We provide structured commodity finance solutions, including pre-export financing, inventory financing, and commodity hedging, to support traders and producers in maximizing value from their commodity transactions.
By leveraging Interlink Capital's structured trade finance schemes, businesses can have benefits, including:
Businesses looking to optimize their business operations might gain a strategic edge from Interlink Capital's structured trade finance schemes. With a thorough grasp of the complexities of international trade and a dedication to providing creative financial solutions, Interlink Capital is a reliable partner for empowering businesses.
Structured Trade Finance can cover a wide range of transactions, including:
Yes, Interlink Capital provides comprehensive support with trade finance documentation and compliance requirements, ensuring that all transactions adhere to relevant regulations and standards. Our team assists clients in preparing and reviewing documentation such as letters of credit, contracts, shipping documents, and compliance certifications.
Yes, companies of all sizes, from small and medium-sized enterprises (SMEs) to major multinational corporations, can benefit from tailored structured trade finance. Because of Interlink Capital's adaptable strategy, clients are guaranteed to obtain financing options that are customized to their size, sector, and expansion goals.