TRADE FINANCE
STF Capital offers world-class trade finance services in partnership with Yield 4 Finance, a Dubai-based premier provider of financial instruments in trade transactions. This collaboration was born out of a recognition of the challenges local businesses face in accessing international trade financing. Through this strategic alliance, STF Capital provides clients with structured financial instruments and tailored solutions that support both local and international transactions. The trade finance portfolio includes standby letters of credit, bank guarantees, risk participation, purchase order and invoice financing, infrastructure finance, capital raising, debt restructuring, and M&A consultancy services.
Standby Letter of Credit (SBLC)
A standby letter of credit is a guarantee issued by a financial institution ensuring payment will be made on behalf of a client if they default on a contractual obligation. It provides assurance to the beneficiary that they will be compensated, even if the buyer fails to fulfill their payment commitments.
Foreign Bank Guarantees
Foreign bank guarantees offer security and assurance in international transactions. These include:
Bid Bonds – Issued during tender processes to assure the project owner that the bidder will meet all conditions of the bid if awarded.
Performance Guarantees – Ensure that the contracted party will meet their performance obligations. If they fail, the guarantee compensates the beneficiary.
Advance Payment Guarantees – Protect buyers by ensuring that advance payments made to suppliers are refunded if the supplier does not fulfill their delivery obligations.
Risk Participation Structures
These are innovative off-balance-sheet funding solutions for public and private sector clients. Risk mitigation instruments are used to address key challenges such as:
Lack of adequate collateral
High interest costs
Short-term financing structures
Limited access to markets
Weak historical performance records
This model provides a viable alternative to traditional bank lending and enhances access to capital through structured participation agreements.
Order (Purchase Order) Financing
This solution allows businesses, particularly SMEs, to access capital to pay suppliers before customer invoicing is completed. It bridges the cash flow gap during the production and fulfillment cycle, enabling businesses to meet large orders without upfront capital.
Invoice Discounting
Invoice discounting enables businesses to use unpaid invoices as collateral to access immediate cash. This improves liquidity by converting receivables into working capital without waiting for the payment cycle to conclude.
Project and Infrastructure Finance
This service supports long-term infrastructure and industrial projects by providing finance that is repaid through the project’s own cash flows. It offers limited or no recourse to the sponsors, making it ideal for high-capital public-private ventures.
Capital Raising
STF Capital assists businesses in raising both debt and equity capital.
Debt Capital includes loans or bond issuances and typically has lower costs due to recourse arrangements.
Equity Capital involves investors providing funding in exchange for ownership stakes, typically relying on share appreciation and dividends for returns.
This service helps businesses match their funding model with their growth and risk appetite.
Debt Restructuring
Debt restructuring helps businesses and individuals manage financial distress by renegotiating terms with creditors. This process reduces repayment burdens, prevents bankruptcy, and stabilizes operations while maintaining creditor relationships.
Mergers and Acquisition Consultancy
STF Capital provides expert advisory on M&A transactions, including mergers, acquisitions, tender offers, asset purchases, and management buyouts. This helps businesses consolidate, grow market share, or exit markets efficiently and legally.
Business Competitiveness Advisory
Guided by its core values and commitment to integrity, STF Capital supports businesses in improving competitiveness through transparency, compliance, and smart trade strategies. Every engagement is approached with clear disclosures and respect for fair trading practices.