Public Commentary: The process described below reflects FG Capital Advisors’ practice in conducting advanced due diligence for trade finance transactions before underwriting. It is provided for informational purposes only and does not constitute investment advice or a solicitation.
Advanced Due Diligence for Trade Finance Transactions
Before committing capital, FG Capital Advisors applies rigorous due diligence across operational, legal, financial and risk dimensions. This ensures only transactions with verified collateral, clear title, and acceptable counterparties move to underwriting.
Due Diligence Framework
| Category | Key Activities |
|---|---|
| Operational Review | Site visits; supply‐chain mapping; logistics partner vetting |
| Legal Analysis | Contract review; confirmation of assignments; UCC filings or equivalent |
| Financial Assessment | Cash‐flow modelling; payment‐history testing; customer credit checks |
| KYC / AML Screening | Ultimate‐beneficial‐owner verification; sanctions and PEP database checks |
| Collateral Verification | Third‐party inspections; warehouse‐receipt validation; title certification |
| ESG & Political Risk | Environmental compliance audit; country‐risk scoring; community‐impact review |
Step-by-Step Process
- Pre-Screening: Review client proposal, transaction size, and initial documentation.
- Data Request: Collect corporate, financial and collateral records; issue diligence checklist.
- Field Work: Conduct site inspections and third-party verifications within target market.
- Legal Opinions: Obtain enforceability and perfection opinions from local counsel.
- Risk Modelling: Stress scenarios for credit, operational and political exposures.
- Credit Memorandum: Compile findings, produce recommendation for underwriting committee.
Typical Timeline
Day 1–3
— Initial proposal review and mandate agreement.
Day 4–10
— Data collection and initial analysis.
Day 11–20
— Site visits, legal‐opinion drafting and collateral checks.
Day 21–25
— Risk modelling and lender‐presentation preparation.
Day 26–30
— Underwriting committee decision and term‐sheet issuance.
FG Capital Advisors’ Role
- Coordinate cross‐discipline teams—technical, legal and financial—to cover every angle.
- Engage specialist inspectors and local counsel for reliable, on-the-ground verification.
- Translate complex findings into clear credit‐committee reports and term proposals.
- Advise clients on risk‐mitigation measures—insurance wraps, reserve accounts, guarantees.
Engagement
Sponsors and lenders seeking rigorous trade-finance due diligence prior to underwriting are invited to contact FG Capital Advisors. We ensure clear title, verified collateral and managed risk before capital is committed.
This document is for informational purposes only. It does not constitute investment advice or an offer to buy or sell any security or service. Independent professional guidance is recommended before acting on any information herein.
