Rwandan entrepreneur case study: USD 180,000 trade finance facility approved within 5 weeks

The client had signed contracts worth USD 1.8 million over 18 months but the contracts did not allow advance payments. His bank had declined a working capital facility because the contracts were with a government entity and the bank was not comfortable with public sector counterparty risk in Rwanda. He needed USD 180,000 in bridging capital within 6 weeks.

We prepared a structured trade finance proposal using the government contracts as collateral, calculated the debt service from the contract payment schedule, and identified two UAE-based trade finance providers with East African portfolio experience. We also prepared a personal guarantee package to supplement the corporate collateral given the timeline pressure.

USD 180,000 trade finance facility approved within 5 weeks. Equipment purchased and first contract commenced on schedule. Client is currently in discussions for a larger revolving facility ahead of two additional government contracts.