The Global Trade Finance Gap & Limitations of Conventional Lending

A significant global trade finance gap, estimated in the trillions of dollars, persists, disproportionately affecting small and medium-sized enterprises (SMEs) and businesses in emerging markets. Traditional financial institutions, often constrained by stringent regulatory capital requirements, conservative risk appetites, and standardized credit models, may be unable to support viable trade transactions. Companies frequently search for "alternative funding for international trade deals" when faced with inflexible collateral demands, lengthy approval processes, or a lack of appetite for specific transaction types or jurisdictions from their primary banks.

Private credit has emerged as a vital alternative, offering bespoke, flexible, and often faster financing solutions. FG Capital Advisors acts as your strategic arranger, understanding that "accessing private credit for supply chain finance" or "finding non-bank lenders for commodity trade" requires specialized knowledge and relationships. We work to bridge the gap by connecting businesses with private capital sources keen to deploy funds into well-structured, asset-backed, or event-driven trade finance opportunities.

Our Engagement & Underwriting Facilitation Process for Private Credit in Trade Finance

FG Capital Advisors guides clients through a structured process to secure private credit for their trade finance needs:

1. Step 1: Initial Consultation & Transaction Assessment — We conduct a thorough review of your specific trade finance requirements, the underlying commercial transaction, existing financial arrangements, and the challenges encountered with traditional lenders. This helps us understand if "private credit solutions for international trade" are a suitable pathway.
2. Step 2: Structuring & Mandate Definition — Leveraging our expertise, we assist in structuring the transaction to appeal to private credit lenders. This includes defining the security package, risk mitigants, and proposed terms. A clear mandate is established for FG Capital Advisors to act as your arranger.
3. Step 3: Lender Identification & Introduction — We identify and approach suitable private credit funds and non-bank lenders from our curated network whose investment criteria and risk appetite align with your transaction profile. We facilitate introductions and manage initial communications.
4. Step 4: Due Diligence & Underwriting Support — Private credit lenders conduct their own rigorous due diligence. We assist your team in preparing and presenting the required information, navigating the "underwriting process for private trade credit," and responding to lender queries to ensure a smooth evaluation. This often involves detailed analysis of transaction flows, counterparty risks, and collateral.
5. Step 5: Term Sheet Negotiation & Facility Placement — FG Capital Advisors supports the negotiation of indicative and final term sheets, striving for optimal terms for your business. Upon agreement, we assist in the execution of legal documentation and the successful placement of the private credit facility.

Trade Finance Scenarios Addressed by Private Credit Arrangements

Private credit, arranged by FG Capital Advisors, can be particularly effective for:

• Working Capital for Large Orders: When traditional bank lines are insufficient to support significant growth or large-scale purchase orders.
• Asset-Backed Lending for Trade Flows: Financing against inventory, receivables, or other assets within the trade cycle, often sought by companies needing "asset-backed private debt for trade."
• Event-Driven or Special Situations: Financing for unique trade opportunities, seasonal peaks, or situations where speed and flexibility are paramount.
• Transactions in Niche Markets or Commodities: Where specialized lender knowledge is required, and traditional banks may lack appetite.
• Bridging Finance: Short-to-medium term facilities to bridge a specific funding gap until a longer-term solution or sale proceeds are realized.
• Growth Capital for Trading Businesses: Providing capital to scale trading operations beyond what balance sheet lending can support.

Advantages of Utilizing Private Credit for Trade Finance via FG Capital Advisors

• Access to Non-Bank Capital: We provide pathways to "specialized private credit funds for trade finance" that operate outside traditional banking constraints.
• Flexible & Bespoke Structures: Private credit lenders often offer more tailored solutions compared to standardized bank products.
• Speed of Execution: In certain situations, private credit can offer a faster route to funding than traditional institutional processes.
• Appetite for Complexity: Private lenders may have a greater capacity to understand and underwrite complex or story-driven trade transactions.
• Complementary to Bank Finance: Private credit can often work alongside existing bank relationships, filling gaps or providing subordinated layers of capital.
• Expert Navigation: FG Capital Advisors guides you through the private credit market, saving you time and improving your chances of "securing non-bank trade finance facilities."

Frequently Asked Questions: Arranging Private Credit for Trade Finance

What is the typical cost of private credit for trade finance?
Pricing for private credit is generally higher than traditional bank debt, reflecting the bespoke nature, perceived risk, and flexibility offered. Rates and fees vary widely based on the transaction specifics, duration, and lender. FG Capital Advisors helps ensure transparency in cost structures.

What kind of security do private credit lenders typically require for trade finance?
Security packages are tailored to the transaction but often include charges over traded goods, receivables, bank accounts, and potentially corporate guarantees or other collateral enhancements.

How does the due diligence process for private credit differ from bank lending?
While equally rigorous, private credit due diligence may focus more intensely on the specific transaction's cash flows, collateral, and exit strategy, and can sometimes be more operationally focused than purely balance sheet driven.

Is private credit suitable for all types of businesses needing trade finance?
Private credit is often best suited for established businesses with strong management, clear transaction visibility, and a compelling commercial case, particularly when traditional finance is unavailable or insufficient. It may not be the optimal solution for very early-stage companies without a track record.

How does FG Capital Advisors select appropriate private credit lenders for a client?
Our selection is based on a deep understanding of various private credit funds' investment mandates, sector preferences, geographical focus, typical deal size, and risk appetite, ensuring a strong alignment with our client's specific needs.

Service Disclaimers & Important Considerations

FG Capital Advisors acts as an arranger and consultant to facilitate access to private credit for trade finance transactions and is not a direct lender or a registered broker-dealer. All financing is subject to the comprehensive due diligence, credit approval, legal documentation, and final discretion of the private credit lenders.

The availability of private credit, as well as the specific terms and conditions, will depend on the individual merits of each transaction, the risk assessment performed by lenders, and prevailing market conditions. FG Capital Advisors makes no representation or warranty that financing will be available or secured. This information is for discussion purposes only and does not constitute an offer or solicitation for any financial product or service.