Structured Trade Finance (STF) A conceptual Analysis.
Structured Trade Finance (STF) A conceptual Analysis. Structured trade finance deals with a type of debt finance, which is used as an alternative to conventional lending. It is regularly used in developing countries and in relation to cross border transactions. The aim is to promote trade by using non-standard security; it is usually used in high value transactions in bi-lateral trading relationships. 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 supply chain 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 (stock) , borrowi