> ## Content Index > Fetch the complete content index at: https://blog.financely.io/llms.txt > Use this file to discover other available public pages before exploring further. # Credit Enhancement Advisory for Trade and Project Finance - URL: https://blog.financely.io/credit-enhancement-advisory-for-trade-and-project-finance/ - Published: 2026-10-13T14:29:35.000Z - Updated: 2026-10-13T14:29:35.000Z - Description: Financely is scaling its credit enhancement advisory, using guarantees, insurance wraps and risk participation to get stalled trade and project deals funded. - Author: Financely Debt Advisors ## Financely Expands Its Credit Enhancement Advisory for Trade and Project Finance Many trade flows and projects are viable on their own numbers and still never reach a facility. The lender likes the business, but the file is missing something credit policy requires, such as stronger collateral, a guarantee, longer tenor or relief from a concentration limit. That gap is where credit enhancement works, and it is the part of our business growing fastest. Financely is scaling its credit enhancement advisory across trade finance and project finance, to help more sponsors and operating companies turn stalled requirements into structures credit committees can approve. This article explains what that work involves, what changes for clients, and how to start a mandate. In this article 1. [Why good deals stall without credit support](#ce-why) 2. [From stalled requirement to approved facility](#ce-before-after) 3. [What changes for the client](#ce-outcomes) 4. [Download the one-pager](#ce-download) 5. [Structures we use](#ce-structures) 6. [Who we work with](#ce-clients) 7. [How a mandate works](#ce-process) 8. [Frequently asked questions](#ce-faq) ### Why good deals stall without credit support Banks and funds do not only ask whether a borrower can repay. They ask whether the transaction fits their policy. A trader with a sound buyer may still lack the collateral a bank requires. A developer with a signed offtake contract may still need a guarantee before construction debt can close. An exporter may be capped because the bank has already reached its limit for a country or a counterparty. Across trade, the result is a large unmet demand for finance. The Asian Development Bank estimated the global trade finance gap at USD 2.5 trillion in its [2023 Trade Finance Gaps, Growth, and Jobs Survey](https://www.adb.org/publications/2023-trade-finance-gaps-growth-jobs-survey?ref=blog.financely.io). A meaningful share of that gap is not about weak businesses. It is about transactions that arrive without the support lenders need to say yes. ### From stalled requirement to approved facility | Before | After | | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | Counterparties require support the sponsor cannot post alone. Thin collateral, missing guarantees, short tenors or concentration risk keep viable trade flows and projects from receiving a facility. | Collateral is sized and controlled. Guarantees and insurance sit inside lender policy. The file reaches banks, funds and export credit agencies in a form that can be underwritten, so a facility or instrument can be issued and drawn. | ### What changes for the client ### Longer tenor Facilities that match the trade cycle or the construction period, instead of rolling short-term lines that create refinancing risk every few months. ### Lower cash lock-up Margin and collateral requirements reduced through third-party support or insurance, so working capital stays in the business. ### More credit capacity Risk participation and insurance wraps that free up existing bank lines for additional volume. ### Close certainty A lender-readable file that moves from term sheet to documentation without starting over. ### Download the one-pager Our credit enhancement executive summary sets out the structures we use, the outcomes for clients and how to start a mandate on a single page. Download it below to share with your finance team, your lenders or your board. [Financely Credit Enhancement One Pager Credit enhancement one-pager: structures, client outcomes and how to start a mandate with Financely.Financely\_Credit\_Enhancement\_One\_Pager.pdf36 KBdownload-circle](https://blog.financely.io/content/files/2026/10/Financely%5FCredit%5FEnhancement%5FOne%5FPager.pdf "Download") ### Structures we use Each mandate starts from the lender's policy and works backwards, choosing the support that closes the specific gap in the file. | Structure | Where it helps | | ------------------------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | Documentary credits and confirmations | Issued and confirmed under UCP 600, so the supplier is paid against compliant documents and the lender's exposure is to a bank it accepts. | | Standby letters of credit and guarantees | Issued under ISP98 or URDG 758 to back payment or performance. See our guide to the [differences between UCP 600, ISP98 and URDG 758](https://www.financely-group.com/difference-between-ucp-600-isp98-urdg-758?ref=blog.financely.io). | | Controlled receivables and inventory lines | Lending against receivables and stock with control over cash and goods, including [borrowing base facilities](https://www.financely-group.com/borrowing-base-facilities-for-physical-commodity-traders?ref=blog.financely.io). | | Insurance wraps and risk participation | Credit and political risk insurance, and funded or unfunded participations that share exposure with other lenders. | | ECA and DFI support | Export credit agency cover and development finance institution guarantees that bring longer tenors and access to higher-risk markets. | | Collateral, margin and third-party support | Sizing and controlling collateral and margin, and bringing in third-party balance-sheet support where a lender requires it. | For sector-specific examples, see our pages on [credit enhancement in renewable energy project finance](https://www.financely-group.com/credit-enhancement-and-risk-sharing-in-renewable-energy-project-finance?ref=blog.financely.io) and [credit enhancement for infrastructure in emerging markets](https://www.financely-group.com/credit-enhancement-for-infrastructure-deals-in-emerging-markets?ref=blog.financely.io). ### Who we work with We work with operating companies, sponsors, importers, exporters, commodity traders and project developers that have a live transaction, identifiable counterparties and the capacity to pay for professional work. We prefer post-revenue businesses. This is not a service for retail, speculative or non-commercial requests. ### How a mandate works **Request a quote.** Share the transaction, the counterparties, the facility or instrument you need, and where the current process has stalled. **Go or no-go.** We review the request and tell you plainly whether credit enhancement can close the gap, and on what basis. **Engagement.** If it can, we agree the scope and a one-off retainer, structure the support, and take the file to banks, funds and export credit agencies whose policy it fits. **Financely does not sell bank instruments.** Financely provides corporate finance advice. It is not a bank, an escrow agent or a broker-dealer, and nothing we publish is an offer of credit or a commitment to issue an instrument. If someone offers you a guarantee or standby letter of credit using our name, read our [notice on fraudulent instruments misusing our name](https://www.financely-group.com/important-notice-fraudulent-surety-bonds-and-sblcs-misusing-our-name?ref=blog.financely.io). ### Start a credit enhancement mandate Tell us about your transaction and where it has stalled. Paid advisory, and a retainer applies once we agree to proceed. [Request a Quote](https://www.financely-group.com/requestaquote?ref=blog.financely.io) [Book a Consultation](https://www.financely-group.com/consultation?ref=blog.financely.io) ### Frequently asked questions What is credit enhancement? Support added to a transaction so that it meets a lender's credit policy. Examples include guarantees, standby letters of credit, credit and political risk insurance, risk participation, controlled collateral and export credit agency cover. Does Financely issue guarantees or standby letters of credit? No. Financely is a corporate finance advisory firm, not a bank. We structure the support a transaction needs and arrange it with banks, insurers, funds and agencies that issue or provide it. Who is a good fit for credit enhancement advisory? Operating companies, sponsors, traders and project developers with a live transaction, identifiable counterparties and the capacity to pay for professional work, preferably post-revenue. How are you paid? Through a one-off retainer agreed after the go or no-go review. The scope and fee are set out before any work begins. Financely provides corporate finance advice and is not a bank, escrow agent or securities broker-dealer. Nothing herein is an offer of credit or a commitment to issue an instrument. Engagements are best-efforts and subject to KYC, AML, sanctions screening and counterparty approval, and are governed by the Terms of Service at financely-group.com.