When it comes to financial instruments there are home loans, business loans, overdrafts that are all widely used by borrowers needing finances. There are also borrowers in the market who have unique requirements and will need more complicated financing instruments. Structure finance is a financial instrument which is used by big financial institutes or companies with financial needs which cannot be satisfied by conventional financial products like normal loans. Traditional lenders do not offer structured finance such as Collateralized Debt Obligations (CDOs), Collateralized Bond Obligations(CBO), etc.

A number of structured finance products may be implemented when a standard loan is not enough to cover the company's unique transactions. Large institutions like banks make use of structured finance. There are requirements to be met when it comes to structured financing: Audited financial statements and cash flow statements, trading history, securities available, information on business assets and liabilities, etc. Structured finance can help companies restructure the debt they are dealing with and work on how efficiently working capital can be used.  It is very useful for companies that are operating globally.