Trade Finance Providers,
Compared.

A Letter of Credit is a bank-issued guarantee that a seller will receive payment once they fulfil specific conditions (e.g. shipment, documentation). The bank pays the exporter even if the buyer defaults.

Types: Sight LC (immediate payment on presentation) Usance LC (deferred payment, e.g. 90 days) Standby LC (backup guarantee).

Typical cost: 0.10–0.35% per quarter of the LC value plus SWIFT and confirmation charges. Best for: New trade relationships, high-value deals, or markets with high payment risk.

Invoice Finance lets you borrow against the value of your outstanding invoices before your buyers have paid. Instead of waiting 30–120 days for payment, you receive up to 85–95% of the invoice value upfront from a lender.

Two main types: Invoice Factoring — the lender manages your sales ledger and chases payment. Invoice Discounting — you retain control of collections, keeping the arrangement confidential.

Typical cost: 1.5–4.0% per annum (discount rate) plus a service charge. Best for: SMEs with strong buyers needing faster working capital.

Trade Credit Insurance (also called Export Credit Insurance) protects exporters against non-payment by buyers — whether due to insolvency, political instability, or refusal to pay.

Policies cover: Whole-Turnover (all buyers, rolling annual policy) Single-Risk (one specific buyer or contract) Political Risk (government actions, currency restrictions, war).

Typical cost: 0.1–0.5% of insured turnover annually. Best for: Any exporter selling on open-account (credit) terms, especially to new or riskier markets.

Supply Chain Finance is a buyer-led programme where a large buyer (the "anchor") arranges for a bank or fintech to pay its suppliers early, using the buyer's credit rating rather than the supplier's. The buyer then repays the bank on the original invoice due date.

Benefits: Suppliers get paid faster at lower cost; buyers can extend payment terms without hurting suppliers. Dynamic Discounting is a variant where the buyer pays early using its own cash in return for a discount.

Typical cost: 0.8–3.5% p.a. Best for: Large corporates with many SME suppliers.

A Bank Guarantee is a promise by a bank to pay a named beneficiary if the bank's client fails to meet a contractual obligation. Unlike an LC, it is typically only called upon in the event of default (it's a contingent liability).

Common types: Performance Bond (contractor delivers project) Bid Bond (tender process) Advance Payment Guarantee (buyer advances funds upfront) Payment Guarantee (buyer will pay).

Typical cost: 0.5–2.5% per annum of the guaranteed amount. Best for: Construction, government contracts, and large procurement deals.

In a Documentary Collection, the exporter's bank sends shipping and title documents to the importer's bank. The importer can only receive documents (and therefore the goods) after paying or accepting a bill of exchange.

Two forms: D/P (Documents against Payment) — pay now to release documents. D/A (Documents against Acceptance) — sign a bill of exchange promising future payment.

Cost: Lower than an LC — typically 0.10–0.20% of the invoice value. Best for: Established trading relationships where an LC is too expensive but some protection is needed.

Forfaiting is the purchase of a series of receivables (usually promissory notes or bills of exchange) from an exporter at a discount, on a non-recourse basis. The exporter receives immediate cash and transfers all credit and political risk to the forfaiter.

Unlike factoring, forfaiting typically covers medium-to-long-term transactions (1–7 years), making it ideal for capital goods exports.

Typical cost: Discount rate based on EURIBOR/SOFR + 1.5–4%, depending on country and tenor. Best for: Exporters of machinery, infrastructure equipment, or capital goods to emerging markets.

Export Credit Agencies (ECAs) are government-backed institutions that help domestic exporters by providing insurance, loan guarantees, and direct loans to overseas buyers. They step in where commercial banks won't, particularly for large or long-term deals in high-risk markets.

Key products: Buyer Credit (loan to overseas buyer to purchase your exports) Supplier Credit Insurance (insures your receivables) Bond Support (guarantees performance bonds) Working Capital Scheme (releases cash for exporters).

Examples: UKEF (UK), EXIM Bank (USA), Bpifrance (France), EDC (Canada).

Purchase Order Finance provides funding to pay your supplier so you can fulfil a confirmed purchase order from your buyer — before the goods are produced or shipped. The lender pays your supplier directly and is repaid once your buyer settles the invoice.

PO finance bridges the gap between receiving a large order and having the cash to produce and deliver it. Typical cost: 2–5% of the PO value. Best for: Manufacturers, wholesalers and distributors who land large orders but lack working capital to fulfil them.

Commodity Finance covers the financing of raw materials and commodities throughout the trade cycle — from production to export, transport, processing and sale. It typically uses the commodity itself as collateral.

Common structures: Pre-export Finance (funds production before export) Warehouse Financing (loan secured against stored commodities) Borrowing Base Facility (revolving credit against commodity inventory) Repos & Structured Trades.

Best for: Cocoa, coffee, oil & gas, metals, agriculture and other raw material traders.

Islamic Trade Finance offers Sharia-compliant equivalents to conventional trade finance instruments — structured to avoid interest (riba).

Key structures: Murabaha LC — bank buys goods then sells to client at a profit margin (replaces interest-bearing LC) Wakala — agency structure where bank acts as agent on client's behalf Commodity Murabaha — short-term liquidity instrument using commodity as conduit Islamic Guarantee (Kafalah).

Best for: Muslim-majority markets, GCC businesses, Halal trade corridors.

Costs vary significantly by product and provider. Indicative ranges:

• Letter of Credit: 0.10–0.35%/quarter of face value
• Invoice Finance: 1.5–4.0% p.a. plus service charge
• Trade Credit Insurance: 0.1–0.5% of annual insured turnover
• Bank Guarantee: 0.5–2.5% p.a. of guarantee amount
• Supply Chain Finance: 0.8–3.5% p.a.
• Forfaiting: EURIBOR/SOFR + 1.5–4% p.a.

ExporterIQ shows indicative fee ranges for each provider to help you compare before applying.

Approval timelines vary widely:

• Fintech lenders (e.g. 4Syte, Tradewind): 24–72 hours for invoice finance
• Commercial banks — invoice/SCF: 3–10 days once onboarded
• Letters of Credit: 2–7 days for issuance once facility is in place
• ECA-backed deals: 2–8 weeks for full credit approval
• Complex structured finance: 4–16 weeks

ExporterIQ shows Deal Speed for each provider on every card so you can find the fastest match for your timeline.

Standard documentation typically includes:

• Business registration & company incorporation documents
• Audited financial statements (1–3 years depending on provider)
• KYC/AML documentation (directors' IDs, proof of address)
• Trade documents: purchase orders, invoices, contracts, shipping documents
• Bank statements (3–6 months)
• IEC / export licence (required for Indian exporters)
• Commodity-specific docs for commodity finance (warehouse receipts, assay reports)

ExporterIQ shows the exact requirements for each provider on the expanded card view.

It's simple:

1. Use the filters above to find providers matching your country, product type and deal size
2. Click "Get Trade Finance →" to visit the provider's website directly, or
3. Click "Request Info" to submit your details via our inquiry form — we'll send your enquiry to the provider
4. ExporterIQ can also help you prepare and organise your documentation for a stronger application — contact us to find out more

Yes. Most trade finance products are available to SMEs, though some banks require minimum turnovers or trading histories. The most accessible options for SMEs include:

• Invoice Finance — available from as little as £10,000/invoice with fintech lenders
• Trade Credit Insurance — whole-turnover policies with no minimum
• ECA products — government agencies like UKEF, EXIM and EDC specifically support SMEs
• Fintech platforms — 4Syte, Tradewind, Bibby Financial Services offer fast, flexible SME-focused products

Filter by "SME Friendly" on ExporterIQ to see only providers that welcome smaller businesses.

Minimum deal sizes vary enormously by provider and product:

• Fintech invoice finance: From $10,000 per invoice
• Trade credit insurance: No minimum for whole-turnover policies
• SME bank LC (UK): From £25,000
• Large corporate bank LC: Often $100,000–$500,000+
• ECA-backed deals: Government schemes from £10,000 (EXIM)
• Structured commodity finance: Typically $500,000+

Every ExporterIQ provider card shows the minimum deal size so you can filter for the right match.

It depends on the product and provider. Commercial banks usually require you to have (or open) a business account with them before accessing trade finance facilities. Fintech lenders and specialist lenders (e.g. Bibby, Tradewind, 4Syte) do not require an existing banking relationship — they assess you based on your invoices and buyers. ECAs work through approved partner banks, so you apply via your existing bank.

ExporterIQ's requirements section on each card tells you what's needed upfront.

Absolutely. ExporterIQ lists 22 providers across Cameroon, Nigeria, Ghana and Kenya, with more African countries planned. The best options for African businesses include:

• Pan-African banks like Ecobank (35 countries), UBA (20 countries), and Access Bank
• UK-Africa corridor specialists like First Bank UK, UBA UK and Zenith Bank UK
• DFIs like Afreximbank supporting intra-Africa trade
• Standard Bank Group networks in Nigeria, Ghana and Kenya

Use the Country filter to browse all providers in your specific market.