For purposes of trade finance the most expedient method of finance is contracting the use of a financial instrument or collateral asset to obtain a credit facility. This business is typically conducted through an SPV or trust under tightly controlled conditions. Typically the providers are asset management firms such as hedge funds, family offices, trusts or bond holders. Collateral lenders may achieve an increase in overall yield secured by the underlying transaction assets of greater value.
Securitization is a method of asset monetization where commodity assets (or any asset) and future revenue streams are converted to issuable securities in funding.