Structured Trade Finance
Structured Trade Finance (STF) is an alternative means of providing trade finance outside the traditional / vanilla products and without fall back on securities. Under STF, the focus is on underlying cash flow and structures that enhance safe financing.
Structured Trade Finance credit enhancement instruments include;
- Collateral Managers
- Warehouse receipts / warrants
- Traditional Insurance
- Trade Credit Insurance.
- Quality control
- Escrow account
- Special Purpose Vehicles.
- Tripartite, quartette, etc Agreements.
- Use of government, industry self regulators and other institutions.
Requirements;
- Structured Trade Finance facility or Cash Margin
- Customer’s letter of request
- Required documents. (Transaction specific).