Structured Trade Finance - What Does It Mean?

Structured trade finance is a financial instrument offered to large corporations with complex financing needs. Check out our short guide to structured trade finance.

When it comes to financing a transaction, there are a variety of financial instruments available in the market including mortgages or overdrafts which consider the creditworthiness of the borrower.

However, there are borrowers in the market with unique financing requirements, demanding financing instruments accordingly. In this blog, we will discuss what structured trade finance is and how it benefits borrowers. Keep reading:

What is Structured Trade finance?

1. Structured trade finance is a type of finance specifically designed to meet the unique or complicated financial needs of large corporations that are unsatisfied with traditional/conventional financial products.

2. This type of trade finance is generally utilized in relation to high-valued cross-border trade transactions and covers a wide range of financial products & services to match the complex finance requirements of large organizations.

3. Structured trade finance is typically designed for large-scale corporations that have highly specified financing requirements that the existing financial instruments are unable to meet.

4. It is the most suitable option when the standard loans cannot cover the funding needs of an organization.