01
Receivables and invoice finance
Purchase or discounting of confirmed invoices owed by creditworthy obligors. Advance rates and reserves set per obligor, with verification of delivery before funding and collections routed to controlled accounts.
Strategy 01 · Private credit
Trade finance financing
Financing that follows goods, not sentiment. We structure short-duration credit exposure to documented commercial transactions inside a dedicated alternative investment fund, so professional investors get a defined asset, a defined obligor and a defined maturity.
The attraction of the asset class is duration and self-liquidation. The risk is documentation and fraud. We are explicit about both.
- Instrument types
- Receivables purchase, invoice discounting, supply-chain and purchase-order finance, documented commodity flows
- Typical duration
- Short — commonly 30 to 180 days per exposure
- Security & support
- Assignment of receivables, title or document control, guarantees, credit insurance where available
- Structure
- Dedicated AIF or compartment, euro-denominated, professional investors only
The exposures
What sits inside a trade finance mandate
02
Supply-chain and purchase-order finance
Financing the gap between a confirmed order and payment: supplier settlement, production and shipment funding, and payables programmes where the anchor buyer’s credit is the anchor of the exposure.
03
Documented commodity flows
Pre-export and transactional financing of physical flows with control over documents of title, inspection, warehousing and offtake. Only commodities and corridors we can actually monitor.
04
Structured programmes
Revolving facilities for a single originator or corridor, with borrowing-base mechanics, eligibility tests and reporting covenants — suited to an investor who wants one programme rather than a diversified pool.
Risk
Where trade finance actually goes wrong
Losses in this asset class rarely come from a modelled default. They come from paperwork that describes goods which were never shipped, the same receivable financed twice, or a concentration nobody added up. Our controls are aimed at those failures.
- 01
Verify the trade before the money moves
Independent confirmation of delivery, acceptance or shipment, direct with the obligor where the programme allows it.
- 02
Control the cash path
Collections directed to accounts the fund controls or monitors, with reconciliation to the financed asset rather than to a summary report.
- 03
Hard concentration limits
Limits per obligor, originator, sector and corridor written into the investment policy and tested at every drawdown, not reviewed annually.
- 04
Insurance and guarantees where they are real
Credit insurance is treated as mitigation only when the policy conditions can be met in practice — with the exclusions read, not assumed.
- 05
Sanctions, AML and corridor screening
Counterparty, vessel and jurisdiction screening as a condition of eligibility. Corridors that cannot be screened are not financed.
Group advantage
Trade finance needs rails, not just credit
Paying a supplier in an emerging corridor on the day the documents clear is an operational problem before it is a credit one. Being part of a group with licensed payment and settlement capability shortens that path.
VIP360
Multi-currency settlement
SEPA, SWIFT, Faster Payments and multi-currency FX through FCA- and FINTRAC-regulated group entities — useful when a corridor needs paying quickly.
BLK Advisory
Receivables process review
For corporates that need their invoicing, credit control and documentation tightened before any financing conversation makes sense.
BLK Tech
Monitoring and audit trail
Transaction monitoring and reporting technology proven inside a regulated group, applied to programme-level reporting.
Boundary
Stated plainly
Payment and advisory services are contracted with the relevant group entity under its own licence and terms. They are not services of BLK Finance and are not part of managing any fund.
Questions about trade finance funds
What is a trade finance fund?
A fund that provides short-term financing against commercial transactions — invoices, purchase orders, inventory in transit or documented shipments. Repayment comes from completion of the underlying trade rather than from refinancing, so exposures are typically 30 to 180 days and described as self-liquidating.
How is the risk controlled?
Obligor credit assessment, document and title control, concentration limits by obligor, sector and corridor, insurance or guarantees where genuinely available, and verification of the trade before funds are advanced. Fraud and documentation risk are the primary risks and are managed by process rather than priced for.
Can a corporate borrower approach you directly?
Yes — submit a financing enquiry and we will tell you quickly whether the flow is eligible for a fund we manage. BLK Finance is a fund manager, not a balance-sheet lender: any financing comes from an AIF it manages, within that fund’s investment policy.
Risk note: trade finance exposures carry credit, counterparty, fraud, documentation, operational, concentration, currency and liquidity risk. Short duration is not the same as low risk, and self-liquidating exposures can still fail if the underlying trade does not complete. Nothing on this page is an offer or a recommendation; fund-specific terms and risk factors are set out only in the relevant fund’s documents.