Professional Services. Bridge loans for physical commodity transactions. Prepared September 2025.
Bridge Loans for Physical Commodity Transactions
Cash gap between purchase and sale. We close it. Raise short term debt against inventory, cargo in transit, or receivables. We set clean title control, align cash waterfalls, and place the deal with lenders who fund real trades.
Who it suits
Commodity traders, processors, refiners, importers, exporters with repeat flows.
Typical size
USD 3m to 75m per transaction. Upsize on syndication.
Tenor
30 to 180 days. Extensions on documented takeout.
What A Trade Bridge Is
A short term facility secured by liquid collateral that pays out at a defined takeout. Lenders fund against inventory with warehouse control, cargo with negotiable bills of lading, or receivables from credible buyers. Proceeds sweep to the lender, margin is released to you.
Why it works
Funding matches collateral and exit. Less equity trapped. Faster turns and clearer risk for the lender.
Common exits
Buyer LC at sight, UPAS takeout, insured AR collection, repo to a bank line, or a forward sale settlement.
Structures We Arrange
Inventory bridge
Advance against stock in controlled warehouses. CMA or tripartite title letters. Insurance assigned.
In-transit bridge
Advance against cargo with clean negotiable B/L or accepted eB/L. Named carrier and route. Title perfection at load.
Import VAT and duty bridge
Short dated funding to clear customs. Funds repaid at local sale or LC takeout.
Receivables bridge
Advance against invoice to A-rated or insured buyers under 60 days. Assignment of proceeds and blocked collections.
LC backed bridge
Bridge to shipment against issued buyer LC drafts. Align buyer text with exit terms. Optional UPAS add-on.
SBLC supported margin
Cash margin top up for standbys tied to performance or payment. Release on project milestones.
Advance Rates, Pricing, and Timelines
| Collateral | Typical Advance | Pricing Guide | Lead Time |
|---|---|---|---|
| Inventory with CMA | 50% to 75% of NLV | SOFR plus 500 to 1,000 bps | 7 to 21 business days |
| In-transit with clean B/L | 40% to 65% | SOFR plus 600 to 1,100 bps | 7 to 21 business days |
| Receivables A-rated or insured | 70% to 90% of eligible AR | SOFR plus 400 to 900 bps | 5 to 15 business days |
| LC backed drafts | Up to 90% of drawing | Spread based on issuing bank and country risk | 5 to 12 business days |
Ranges are indicative. Final terms depend on grade, custody, buyer quality, route risk, and jurisdiction.
How We Get You Funded
- Scope and exit. Define collateral and the takeout. Buyer LC, insured AR, or local sale.
- Controls. Set title documents, CMA or warehouse receipts, and blocked collections.
- Term sheet. We line up lenders that know your product and lanes.
- Docs. Security, accounts, insurance assignment, and cash waterfall. Keep it tight and workable.
- Draw. Funds released against conditions. We track the exit and release margin on settlement.
Documents We Need To Start
Company
KYC, ownership chart, audited financials, recent management accounts, bank statements.
Trade file
Buy and sell contracts, Incoterms, pricing basis, shipment calendar, counterparties.
Collateral
Warehouse agreements or CMA drafts, stock reports, draft B/L or eB/L flow, insurance policies.
Exit evidence
Buyer LC draft, offtake LOI, or credit insurance with assignment of proceeds.
Key Risks And How We Control Them
- Title gaps. Tripartite letters and negotiable documents at the right node.
- Route risk. Approved carriers, insured routes, and buffer in ETAs.
- Buyer default. Credit insurance or confirmation. Concentration caps where needed.
- Price swings. Daily marks and hedging rules. Clear reserves.
Frequently Asked Questions
How fast can we close
Clean files close in one to three weeks. Complex routes or new CMAs can take longer.
Do we need cash collateral
Not always. Strong control of title and a clear exit can remove the need for cash margin.
Which goods qualify
Standard grades with active markets. Metals, energy, agri, chemicals, and packaged industrials are common.
Can this sit next to our bank line
Yes if intercreditor terms are signed. We structure waterfalls and carve outs to avoid clashes.
Get A Bridge Term Sheet
Send your trade file and exit plan. We will come back with advance rates, pricing, and a lender short list.
Start NowDisclaimer. FG Capital Advisors provides advisory and arrangement services. Terms are set by lenders after diligence. No leased instruments. Final pricing and advance rates depend on credit, collateral quality, route, and jurisdiction.
