Know who owes, who supplies and who receives
The buyer, supplier, logistics party and payment beneficiary can be separate entities. Their identities, roles and obligations need to reconcile with the contract and financed cost. An identifier supports matching; it does not replace credit assessment.
| Risk | Relevant evidence | Control purpose |
|---|---|---|
| Buyer payment | Contract, acceptance and credit support | Understand the enforceable route to collection |
| Supplier performance | Capacity, specifications and milestone records | Assess whether goods can be completed as required |
| Documents and duplication | Invoice, batch and facility records | Detect inconsistencies and duplicate finance |
| Goods and transit | Title, custody, transport and insurance | Follow control and exposure through movement |
| Currency and settlement | Accounts, conversion route and due dates | Maintain liquidity in the required currency |
| Concentration | Buyer, supplier and corridor exposure | Understand a shock affecting several financed trades |
Delivery and quality affect the payment claim
Goods can arrive late, incomplete or outside specification. The contract determines how acceptance, remedies and disputes affect buyer payment. Shipping evidence and title are useful but do not automatically resolve those issues.
The financing structure should explain the effect of a delay or rejection on further draws, repayment and recourse. The operating team needs timely evidence and a route to escalate the exception.
A protection needs legal and operational substance
Security, guarantees, insurance and assignments can address different risks. Their terms, exclusions, priority, notice requirements and enforcement path matter. Describing a facility as secured is incomplete without identifying what supports the claim.
Stock or receivables also need reliable records and appropriate control. The same goods or invoice must not be silently financed twice. A review should reconcile the commercial file with the actual exposure.
Validate a change before moving money
A changed bank account, wallet, beneficiary or supplier should be verified through the agreed process. It changes the destination of capital and can break the connection to the eligible cost. Payment authority should be documented and separable from origination.
The fund’s custody, screening and reconciliation arrangements need to follow the settlement route actually used. Digital records can support the process, while human review remains important for exceptions and interpretation.
The risk record continues after funding
Track the financed amount, milestone, expected receipt and actual collection. An overdue item needs an explanation and owner. A material change should be reflected in the investment’s status and liquidity schedule.
The controls described here are the development operating model. Facility terms and appointments remain to be completed; no executed USD2 facility is represented by the process diagrams.
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