FINANCE / OUR BUSINESS
Structure follows the transaction.
Financing built around identifiable transactions, assets and cash flows.
Our approach
From commercial transaction to financial structure
A financing structure starts with the underlying transaction. We analyze the contracts, assets, receivables, payment obligations and cash flows involved, then build a structure that can be presented to banks, insurers and investors.
Our work covers transaction analysis, structuring, coordination between commercial and financial parties, documentation and risk allocation through to funding.
Trade Science acts as structuring and transaction partner. Capital, credit approval and financing terms remain the decision of the relevant financial institution, investor or capital provider.
Trade Science acts as a structuring and transaction partner. The ultimate provision of capital, credit approval and financing terms remains subject to the assessment and approval of the relevant financial institution, investor or capital provider.
Trade finance
Financing international trade
International trade opens a timing gap between procurement, shipment, delivery and payment. We structure finance around that cycle, based on the purchase and sale contracts, payment terms, counterparties and goods.
Structures include documentary letters of credit, standby letters of credit, prepayment and receivables-based financing.
Depending on the transaction, the structure may involve documentary credits, standby instruments, receivables, prepayment arrangements or other forms of transaction-based financing.
Securitization
Turning cash flows into financeable structures
Securitization turns pools of eligible receivables or other cash-generating assets into financeable structures. We work on asset selection, cash-flow analysis, the special-purpose vehicle, credit enhancement, investor requirements and reporting, alongside the legal and institutional parties involved.
Watch our film on securitizationDepending on the transaction, this can involve asset pooling, special-purpose structures, credit enhancement, risk analysis, investor requirements, reporting and coordination with the legal, financial and institutional parties involved.
Supply chain finance
Financing the commercial cycle
Supply chain finance provides liquidity around established buyer-supplier relationships, improving working capital without disturbing the commercial relationship. The structure depends on the obligor, tenor, jurisdiction and credit profile.
The appropriate structure depends on the buyer, supplier, payment obligation, tenor, jurisdiction and credit characteristics of each transaction.
Receivables and asset-backed facilities
Financing identifiable assets and cash flows
Receivables and other identifiable assets can support transaction-specific financing. We assess asset quality, contractual basis, payment history, obligors and expected cash flows, and structure receivables purchase and asset-backed facilities to match.
Potential structures may include receivables financing, asset-backed facilities and other financing arrangements supported by identifiable contractual cash flows.
Credit and risk
Structuring around risk
Financing terms follow the risk in the transaction. We examine counterparty, payment, contractual and jurisdictional risk and, where the capital provider requires it, build in guarantees, credit insurance, collateral, reserve accounts or bank instruments.
The objective is to locate risk in the transaction and decide how it is allocated, mitigated or transferred.
The objective is to identify where risk sits within the transaction and determine how it can be allocated, mitigated or transferred within a financeable structure.
Tailored structures
Structure follows the transaction
Not every transaction fits a standard product. Where it does not, we work from the transaction outward and combine mechanisms where the economics and risk profile support them.
COMMERCIAL TRANSACTION → ASSETS & CASH FLOWS → RISK ANALYSIS → FINANCIAL STRUCTURE → CAPITAL SOURCES → EXECUTION
Discuss a financing requirementThis approach allows different financial mechanisms to be combined where the economics and risk profile of the transaction support them.