The commercial terms determine the fit
A financing route should match the trade’s stage and the obligation that can support repayment. The same export can involve supplier credit, a buyer deposit and a financing facility at different moments.
Bank / bank agent
Saving, cash access and broader lending
Local reach, fees, collateral and seasonal repayment fitMobile money
Transfers and small payments
Agent liquidity, cash-out charges, limits and interoperabilityMicrofinance
Small loans and local support
Total cost, repayment frequency and household affordabilityValue-chain finance
Inputs or credit connected to a crop buyer
Buyer concentration, price terms and contract enforceabilityWAB service design
Agricultural relationship, payments and seasonal finance
Bank formation, local delivery partners, approvals and product readinessQualitative design comparison. Terms depend on the provider, jurisdiction and transaction. WAB services are in development; USD2 capital remains under discussion. No option is assigned a performance score.
Different instruments support different claims
Actual terms depend on the bank, financier, jurisdiction and transaction. This qualitative comparison explains the commercial question rather than supplying a product recommendation.
| Route | Useful purpose | What remains to examine |
|---|---|---|
| Buyer advance | Cash before production or delivery | Performance, refund conditions and buyer confidence |
| Supplier credit | Defer payment for inputs or goods | Credit period, total price and supplier capacity |
| Letter of credit | Bank payment undertaking against defined documents | Issuing bank, documentary terms, discrepancies and charges |
| Receivables finance | Capital after a qualifying payment claim exists | Buyer credit, invoice acceptance, assignment and recourse |
| Inventory finance | Capital connected to controlled stock | Custody, price, quality, insurance and security rights |
| Transaction facility | Working capital tied to an agreed commercial cycle | Eligible costs, draw conditions and controlled collection |
Compare the complete economics
A fixed fee, percentage fee or interest rate is only part of a financing cost. Currency conversion, insurance, inspections, logistics, unused commitments and deductions can affect the total. Timing and risk allocation also matter.
A comparison should use the same trade, amount, time and currency assumptions. A route that appears inexpensive can leave the borrower carrying more performance or price risk. The current USD2 brief does not establish product pricing or investor economics.
Explore cost assumptions transparently
The payment-cost tool compares two editable scenarios using the same principal and benchmark unit. Neither scenario is a WAB or USD2 tariff.
Scenario A
Scenario B
Sender debit = principal + fixed fee + principal × sender rate
Recipient proceeds = max(principal × (1 − FX spread) − deduction, 0)
Total cost = sender debit − recipient proceeds
ILLUSTRATIVE SCENARIO
Both scenarios start with identical fictional costs. Every input is an assumption in the same USD-equivalent unit. Sender fees are paid on top; conversion and recipient deductions reduce the amount received. No live rates, provider prices, WAB tariff, settlement speed or promised savings are represented.
Use a combination when the obligation supports it
Commercial partners and financial institutions can share the funding cycle. The contract should make the order of payments and the rights over goods and proceeds clear. Several financiers without that clarity can create competing claims.
USD2’s transaction model begins with a documented commercial need. Its eventual terms will be defined by underwriting, legal documentation, capital capacity and the collection route.
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