Letter of credit finance
Support for trade files requiring documentary letters of credit, standby letters of credit or payment undertakings.
Commodity Trade Finance Capital Raising
Capital raising for self-liquidating commodity purchase transactions.
We help commodity traders package and place financing requests for physical commodity purchases, letter of credit structures, borrowing base facilities, syndicated debt facilities, inventory positions, receivables and prepayment-backed trade flows.
What the service covers
This is a capital raising mandate for traders that need financing to purchase, move, store or resell physical commodities.
Borrowing base finance
Facilities supported by eligible inventory, receivables, purchase contracts and controlled commodity flows.
Syndicated debt facilities
Debt placement for larger commodity programs where multiple lenders may participate in the facility.
Purchase finance
Capital for supplier payment where the trader has a credible buyer, margin and delivery route.
Inventory finance
Debt secured by goods in warehouse, port, terminal, bonded storage or controlled logistics chain.
Receivables finance
Funding against invoices, delivered cargo, buyer payment obligations or repeat trade receivables.
Best-fit files usually include a verified supplier, a credible buyer, clear margin, inspection route,
cargo insurance, logistics control and a defined repayment waterfall.
Our procedure
The process is built for trade files where capital providers need transaction logic before they issue terms.
Transaction screen
We review the buyer, supplier, commodity, route, ticket size, margin, documents and requested facility type.
Finance package
We prepare the trade finance memo, cash flow model, source and use of funds, risk matrix and repayment waterfall.
Capital placement
We approach aligned lenders, trade finance providers, private credit groups and structured credit investors.
Term sheet support
We help compare offers, respond to diligence, refine structure and support the closing workstream.
Facility structures we can position
The right structure depends on buyer strength, supplier credibility, collateral control, tenor, margin and repayment source.
| Structure | Use case | Repayment source |
|---|---|---|
| Letter of credit | Supplier requires bank-backed payment assurance before releasing goods. | Buyer payment, sale proceeds or reimbursement by the applicant. |
| Borrowing base facility | Repeat commodity flows backed by inventory, receivables and eligible trade documents. | Controlled collections from financed commodity sales. |
| Syndicated debt facility | Larger trade programs where risk, size or tenor may require more than one lender. | Buyer receivables, inventory liquidation, offtake proceeds or program cash flow. |
| Self-liquidating trade finance | Short-tenor commodity purchase where repayment comes from the financed trade itself. | End-buyer proceeds paid into a controlled repayment waterfall. |
| Prepayment finance | Capital advanced against future deliveries, export flows or offtake-backed commodity sales. | Future commodity delivery, contracted receivables or sale proceeds. |
| Inventory finance | Goods held in warehouse, port, terminal, bonded storage or approved logistics chain. | Sale of inventory or buyer payment after release. |
Commodities we can review
We review physical commodity trades where the documentation, counterparties and repayment route can support lender diligence.
| Commodity category | Examples | Typical financing angle |
|---|---|---|
| Base metals and concentrates | Copper cathodes, copper concentrate, cobalt hydroxide, zinc, lead, aluminum, nickel | Purchase finance, borrowing base, prepayment finance, export receivables |
| Battery and critical minerals | Lithium, manganese, graphite, cobalt, nickel, rare earth-linked materials | Offtake-backed finance, pre-export finance, structured trade debt |
| Precious metals | Gold doré, refined gold, silver, platinum group metals where compliant | Inventory finance, refinery-linked structures, buyer-backed advance |
| Energy products | Crude oil, fuel products, diesel, jet fuel, LPG, LNG-linked cargoes where permitted | Letter of credit, cargo finance, receivables finance |
| Agriculture and soft commodities | Cocoa, coffee, sugar, grains, wheat, corn, rice, oilseeds, pulses | Warehouse receipt finance, inventory finance, buyer-backed trade finance |
| Fertilizers and industrial inputs | Urea, DAP, potash, sulfur, cement, clinker, industrial raw materials | Import finance, purchase order finance, inventory-backed lending |
We screen sanctions exposure, title path, inspection route, shipping terms, payment mechanics and end-buyer credibility before distribution.
Need capital for a commodity purchase?
Submit the trade file. We will review the structure, identify the financing angle and prepare the mandate for capital provider distribution where the file is viable.
Transaction amounts we handle
Minimum
USD 5M financing request for most standalone commodity purchase mandates.
Preferred range
USD 10M to USD 250M for repeat commodity flows and stronger counterparties.
Larger programs
USD 250M+ considered where buyer quality, controls and collateral package support the size.
Syndicated debt
Larger borrowing needs may be placed as syndicated debt facilities where the risk profile supports it.
Financing amount, advance rate, pricing and timing depend on lender underwriting, KYC, AML, sanctions checks,
documentation, collateral control and borrower performance.
Geographies we work with
We work across cross-border commodity flows where payment, logistics, sanctions and bankability can be verified.
Africa
DRC, Zambia, South Africa, Ghana, Tanzania, Kenya, Nigeria, Morocco and other bankable trade corridors.
Europe and UK
European buyers, trading companies, logistics hubs, warehouses, refiners, processors and financial counterparties.
Middle East and Asia
UAE, Saudi Arabia, Turkey, Singapore, India, China, Hong Kong and other major trade finance hubs.
Central Asia and Latin America
Kazakhstan, Uzbekistan, Brazil, Chile, Peru, Colombia and other commodity-producing markets.
What traders should provide
Core transaction documents
Supplier contract, buyer contract, purchase order, pro forma invoice, commercial invoice, packing list and route details.
Counterparty evidence
Supplier KYC, buyer KYC, trade history, financial capacity, export permits and past performance where available.
Commodity control
Inspection route, warehouse receipts, bills of lading, collateral control, cargo insurance and payment account mechanics.
Repayment logic
Cash conversion cycle, buyer payment flow, repayment waterfall, expected margin and self-liquidating trade finance logic.
FAQs
What does self-liquidating trade finance mean?
It means the facility is repaid from the financed trade itself, usually through buyer proceeds, inventory sale or receivables paid into a controlled account.
Can you help with a letter of credit structure?
Yes. We can review trade files involving documentary letters of credit, standby letters of credit, guarantees and related payment support.
When does a borrowing base make sense?
A borrowing base can make sense when the trader has repeat flows backed by eligible inventory, receivables, purchase contracts and controlled collections.
When would syndicated debt facilities be relevant?
Syndicated debt facilities may be relevant for larger trade programs where one lender does not want to hold the full exposure.
Can a first-time commodity trader raise capital?
Yes, but the file needs stronger controls. The buyer, supplier, inspection route, logistics, collateral control and repayment waterfall must be clear.
Prepare your commodity finance mandate for capital providers.
Bring the contracts, counterparties and trade documents. We can structure the file and support capital raising for the transaction.
FG Capital Advisors provides advisory, structuring and capital raising support. Financing is subject to lender underwriting,
KYC, AML, sanctions screening, credit approval, collateral review, documentation and final investment committee approval where applicable.
No financing, pricing, advance rate, timeline or closing outcome is guaranteed.
