Notice. This checklist is informational and general in nature. Every transaction remains subject to counterparty acceptability, KYC and AML, sanctions screening, diligence, definitive documentation, insurance requirements, and third-party approvals. Obtain independent legal advice.
Closing Checklist for Structured Trade Finance Transactions
Closings fail in structured trade finance for predictable reasons. A missing control agreement. A warehouse operator not onboarded. A document list that cannot be produced. A KYC file that stalls at the last mile.
This page is a bank-grade closing checklist you can run before you ask for first draw. If you want us to underwrite and coordinate your closing workflow through approved partners, request a quote.
Request a QuoteHow to Use This Checklist
- Run it twice. Once at term sheet stage to surface blockers early, then again 7 to 10 days pre-close.
- Assign owners. Every line item needs a named owner and a date.
- Prove controls. Lenders fund what they can control. If the control stack is vague, the facility stays theoretical.
If you need the baseline rule-set view for sizing and instruments, start with Trade Finance Term Sheet and Structured Trade & Commodity Finance Services.
Pre-Close Readiness Snapshot
Before legal close, confirm the transaction has four things: (1) an underwriteable flow, (2) producible documents, (3) enforceable security, and (4) operational controls that work on day one.
| Readiness Area | Pass Criteria | Common Failure Mode |
|---|---|---|
| Underlying trade file | Contracts, counterparties, corridors, and economics are clear and consistent | Contract gaps, unclear buyer, missing delivery and payment mechanics |
| Document production | Document list matches the real flow and can be produced repeatedly | Fantasy document sets, inconsistent Incoterms, late documents |
| Security and enforceability | Security package is signed, perfected, and opinioned where required | Unperfected pledge, missing notices, weak title chain |
| Controls and monitoring | Collateral manager, warehouse, and controlled accounts are live | No control account, warehouse not onboarded, reporting not defined |
| Compliance clearance | KYC and AML complete, sanctions cleared, onboarding done | UBO gaps, source of funds unclear, late screening hits |
For a structuring view anchored to underwriting and borrowing base logic, see Trade Finance Structuring & Borrowing Base Design and Commodity Borrowing Base Facility Guide.
Closing Checklist by Workstream
Use the checklist below as your closing agenda. The goal is simple: remove ambiguity and make first draw routine.
| Workstream | Closing Items | Owner | Target Date |
|---|---|---|---|
| 1) Commercial File |
|
Sponsor | Pre-term sheet |
| 2) Compliance |
|
Borrower | T-10 days |
| 3) Facility Documents |
|
Counsel | T-5 days |
| 4) Security Package |
|
Counsel | Close date |
| 5) Controls and Operations |
|
Ops | T-3 days |
| 6) Insurance |
|
Broker | T-3 days |
| 7) Documentary LC or SBLC |
|
Trade Desk | Before shipment |
If the facility includes LCs, confirmations, or discounting, align with Letter of Credit Issuance for Eligible Transactions , Documentary Letter of Credit , and Letter of Credit Monetization.
First Draw Checklist
Legal close is not the finish line. First draw is the real test. These are the items that stop funding on day one.
- Borrowing base certificate completed, signed, and consistent with eligibility rules and reserves.
- Draw request format agreed, including notice cutoffs and bank account details.
- Controlled account live with tested incoming and outgoing payment paths.
- Document routing defined: who sends what, to whom, and by when.
- Collateral reporting started: inventory, shipments, and receivables reporting cadence agreed and operational.
- Exception playbook defined for discrepancies, short shipment, delays, reworks, and substitutions.
If the cash gap is short and you need a tight interim facility while you scale into a repeatable structure, see Trade Finance Bridge Loans.
Common Closing Failures
- Unclear title and control. Inventory exists, but nobody can prove control, custody, or clean title.
- Document list cannot be produced. The LC requires documents the trade cannot realistically generate.
- KYC is treated as paperwork. Missing UBO data or weak source of funds explanations stall onboarding.
- Counterparty notices are ignored. Assignments without acknowledgements become hard to enforce.
- Operations are not staffed. Reporting obligations are agreed, then missed in week one.
About FG Capital Advisors
FG Capital Advisors is a corporate finance advisory firm focused on private credit solutions for trade-related businesses. We structure facilities around real flows, lender-grade controls, and executable documentation, then coordinate placement and closing through suitable third-party capital providers, subject to approvals.
Start here: Trade Finance Structuring and Fundraising and Structured Trade Finance Advisory Services.
FAQ
What is the single most important closing item in structured trade finance?
The control stack. If the lender cannot control cash, collateral, and documents, the facility will not fund reliably.
Do we need a collateral manager or warehouse controller?
Not always, but control is always required. The specific method depends on the commodity, corridor, storage model, and lender policy.
Why do letters of credit closings fail even when the buyer has a bank?
Misaligned terms. The LC text, document list, Incoterms, and contract often conflict. That drives discrepancies and delays. Align LC workstreams early through Documentary Letter of Credit.
Is a term sheet enough to start executing?
It is a start, not a close. Use a term sheet to lock scope, then drive CPs and documentation to a tested first draw.
Do you guarantee a close or funding?
No. Work is best-efforts and always subject to diligence, compliance screening, definitive documentation, and third-party approvals.
If you want a disciplined closing process run end-to-end, submit your transaction summary, contracts, and corridor details. We will revert with a scoped plan and the closing workstreams required to reach first draw.
Request a QuoteDisclosure. This content is for informational purposes and does not constitute legal, tax, accounting, or financial advice. FG Capital Advisors is not a bank or lender and does not accept client money. Any support is provided on a best-efforts basis and remains subject to third-party approvals, diligence, compliance checks, and definitive documentation. No funding, pricing, or timeline is guaranteed.
