Important Disclosure. For commodity traders and accredited investors. Not a public offer. All mandates subject to KYC/AML and underwriting. Prepared September 2025.
Commodity Trader Capital Raising & Third-Party LC Issuance Services
Commodity trading is capital intensive. Buying, shipping and hedging cargoes ties up cash and credit fast. We arrange facilities so you can scale without freezing liquidity. Our network of banks and private credit funds provides working capital, third-party Letters of Credit (LCs), and supplier payment support when your own bank lines are tight or too slow.
Core Services for Commodity Traders
Capital Raising
Borrowing base revolving credit, inventory repo, receivables purchase and discounting. Structures tailored to your trade flows and collateral.
Third-Party LC Issuance
Standby or commercial LCs issued on your behalf to suppliers, backed by clean collateral and risk sharing. ISP98 and UCP600 compliant.
Supplier Prepayments
SBLC or advance payment guarantee (APG) backed prepayments to help secure cargoes or meet contractual obligations.
Purchase Order Financing
Funding for confirmed POs so you can commit to shipments without tapping internal cash.
How It Works
Step 1 – Scope & Fit Call
We map your trade cycle, collateral and counterparties to the right facility type and lenders.
Step 2 – Mandate & Retainer
Engagement letter signed, retainer paid. Data room opened with key contracts and shipment plans.
Step 3 – Lender Underwriting
We secure indicative terms, negotiate controls, and align intercreditor or LC reimbursement structures.
Step 4 – Diligence & Closing
Legal, KYC, inspection and collateral checks completed. Facility signed and available for draw.
Typical timeline: 8–14 weeks to binding term sheet when files are complete.
Indicative Economics
Facility | Size | Tenor | Typical Pricing | Notes |
---|---|---|---|---|
Borrowing Base RCF | USD 20M–250M | 364d revolving | Benchmark + 3–5% | Inventory and receivables driven |
Inventory Repo | USD 10M–150M | 180–365d | Benchmark + 4–6.5% | Title transfer and inspection undertakings |
Receivables Discount | USD 5M–100M | Up to 180d | Discount rate + insurance premium | Named buyers, insured or confirmed |
Third-Party LC Issuance | USD 10M–200M | LC tenor | Fee per issuance + margin | ISP98 or UCP600 compliance |
Rates vary by commodity, jurisdiction, and counterparty rating. Third-party costs and bank charges are separate from our fees.
Why Commodity Traders Work with FG Capital Advisors
Direct Lender Access
We engage banks, funds and trade houses with proven commodity desks and appetite.
Execution Discipline
No fishing. Either we get you a lender-ready term sheet or give a fix list fast.
Structured Controls
Clean title transfer, warehouse receipts, collateral monitoring and insured receivables that pass credit committees.
Transparent Fees
Non-refundable retainer for underwriting and a success fee on funded or issued amounts. No hidden spreads.
Request Capital or LC Issuance Support
Share your trade cycle details and shipment plan. We will respond with scope, a lender checklist and a call slot.
Book a Consultation CallFAQs
Do you fund directly?
No. We arrange and underwrite. Capital is provided by banks, private-credit funds and trade houses.
Minimum facility size?
USD 10M aggregate commitment. Larger portfolios can run into the hundreds of millions.
Which commodities qualify?
Metals, agri/softs, energy products, fertilizers and verified specialty commodities, subject to sanctions checks.
What controls are required?
Title transfer, warehouse receipts, inspection and insurance by Incoterm; assignment of proceeds for receivables.
Can you issue or confirm LCs for any supplier?
Yes, provided the supplier passes KYC/AML and sanctions screening.
Upfront costs?
Our retainer plus third-party costs such as inspections, legal, insurance and bank charges.
Disclaimer. All facilities and LC issuances are subject to KYC/AML checks, underwriting, collateral verification and final documentation. FG Capital Advisors does not guarantee funding. Third-party costs and bank charges are separate from our fees.