Trade Finance Solutions

Trade finance solutions are financial instruments and structures that facilitate international trade — enabling importers to purchase from overseas suppliers and exporters to sell globally, while managing the payment and delivery risk inherent in cross-border transactions. Key instruments include letters of credit, import loans, documentary collections, and export finance.

A letter of credit (LC) is a bank guarantee committing to pay a supplier upon presentation of specified shipping documents. Use an LC when: trading with a new supplier for the first time, the transaction value is large, the supplier operates in a high-risk jurisdiction, or the supplier requires a bank guarantee before shipping.

A documentary collection is a cheaper alternative to an LC where the exporter's bank sends shipping documents to the importer's bank, releasing them on payment (D/P) or acceptance of a bill of exchange (D/A). Unlike an LC, the bank doesn't guarantee payment — it only controls document release. Suitable for established trade relationships with trusted counterparties.

An import loan is short-term debt (30–180 days) that funds the purchase and importation of goods, repaid when the goods are sold. Import loans bridge the cash flow gap between paying a supplier and receiving payment from domestic customers. They are typically secured against the goods, the import LC, or the subsequent sales invoice.

Pre-shipment finance funds a manufacturer or exporter to produce, package, and ship goods before receiving payment from the buyer. It bridges the period between receiving an export order and shipping the goods. Security is typically the purchase order or export LC from the buyer's bank.

Trade credit insurance protects exporters against buyer non-payment — whether due to buyer insolvency, extended default, or political risk (import restrictions, currency inconvertibility). It enables exporters to offer open account terms to buyers who would otherwise require LCs, and unlocks access to trade finance facilities.

OAKRG works across most physical commodities: metals and minerals, agricultural products, energy products, and manufactured goods. Some commodities and jurisdictions face restrictions — OAKRG assesses each transaction individually.

Yes. OAKRG works with importers and exporters from $1M in annual trade volume through to $100M+, connecting them with specialist trade finance banks, alternative lenders, and commodity finance providers.