Public Commentary: The views below reflect FG Capital’s trade-finance practice. They’re for information only—no advice, no solicitation.
Boutique Investment Bank for Trade Finance: Inside the Engine Room
We structure and distribute collateral-backed, self-liquidating credit for the physical-commodity and manufacturing supply chain. Ticket sizes run USD 5 million – 75 million, tenors rarely top 180 days. Our mission: bridge the funding gap big banks left behind while keeping capital fully secured, sensibly priced, and quick to rotate.
What We Actually Do
• Origination & Structuring:
Borrowing-base revolvers, stock-finance lines, receivables discount programs—anchored on warehouse control, title docs and credit-insurance wraps.
• Risk Engineering:
Advance-rate modelling, margin calls, insurance selection, ESG and sanctions screens—baked in from day one.
• Distribution:
Once a facility seasons, we slice it into notes or participations and place the risk with private-credit funds, insurers and trade-heavy banks hunting short duration.
• Servicing & Monitoring:
Collateral tracking, inspection-certificate checks, daily cash sweeps—so lenders sleep at night.
Who We Serve
• Mid-market commodity traders moving base metals, agri-inputs and energy by-products.
• Industrial importers/exporters juggling shipment-versus-payment gaps.
• Private-equity portfolio companies needing working-capital headroom without dilution.
• Regional banks offloading single-name or country-limit exposure while keeping client ties intact.
Why We’re Set Up Like This
Basel tweaks, hefty compliance costs and a few headline blow-ups pushed global banks to de-risk. Mid-sized tickets—too chunky for local lenders, too niche for money-centre giants—fell through the cracks. Our boutique setup lets us dig deep on credit where universal banks won’t and still move at speed. Overheads stay lean, staff carry is tied to deal performance, and we co-invest in every facility—skin firmly in the game.
The Opportunity
The global trade-finance gap tops USD 2 trillion. Regulatory capital creep, geopolitical friction and de-risking keep it stubbornly wide. At the same time, real-asset investors crave floating-rate paper with tight collateral coverage and short tenor. We operate right at that crossroads, offering exporters dependable funding and investors an attractive risk-adjusted return.
Who Funds the Flow?
| Lender / Investor Type | Why They Play | Typical Ticket |
|---|---|---|
| Specialty Private-Credit Funds | Floating-rate yield, low correlation | USD 10–30 million |
| Trade-Oriented Banks | Short tenor, risk-sharing, country-limit relief | USD 20–75 million |
| Insurers & Pension Platforms | Asset diversification, capital-efficient spread | USD 25–50 million (note format) |
| Treasury Desks of Commodity Majors | Strategic tie-in with offtake flows | USD 5–15 million per trade |
Need Trade Finance?
If you require collateral-backed, short-tenor funding—or you’re looking to deploy capital into this space—get in touch. We’re always up for a frank conversation.
This post is for information only and does not constitute investment advice, an offer to sell, or a solicitation to purchase any security or financial instrument. All transactions depend on contract, satisfactory due-diligence, and applicable regulations.
