Gap Financing for Physical Commodity Trades

Notice. This page is informational and general in nature. Any transaction remains subject to underwriting, KYC and AML checks, sanctions screening, legal documentation, collateral controls, and final third-party approvals.

Gap Financing for Physical Commodity Transactions

Physical commodity deals often break at one point: the capital stack has a hole between supplier terms, bank limits, and available sponsor cash.

FG Capital Advisors helps close that hole with gap financing for physical commodity transactions, combining commodity trade finance, structured trade finance, and targeted lender introductions. Every file is handled on a best-efforts basis and remains subject to underwriting.

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Who This Service Is For

Traders and distributors moving metals, energy products, and agricultural commodities.
Importers and exporters with signed contracts but incomplete working capital coverage.
Companies with approved trade lines that still face margin shortfalls.
Operators needing working capital for commodity traders across recurring shipment cycles.
Borrowers requiring one coordinated path across LC, inventory, and receivables funding.

Where The Financing Gap Usually Appears

Deal Stage	Typical Gap	What It Blocks	Possible Fix
Pre-Shipment	Supplier needs payment comfort before release.	Contract activation and production allocation.	Letter of credit structure with margin planning.
Shipment Window	Cash margin required by issuing bank exceeds available liquidity.	LC issuance timing.	Margin-gap support path, subject to provider underwriting.
In-Transit / Storage	Inventory is funded only partially.	Cargo continuity and turnover speed.	Commodity inventory finance and warehouse receipt finance.
Post-Delivery	Buyer payment terms are too long for next purchase cycle.	Replenishment and scaling.	Receivables finance and controlled collections.
Portfolio Scale-Up	Existing facilities do not grow with volume.	Multi-cargo growth plan.	Structured borrowing base facility with staged limits.

Structures We Arrange For Gap Financing

Structure	Use Case	Repayment Source	Key Underwriting Focus
Import LC / Back-To-Back LC	Supplier assurance and intermediary trade execution.	Bank settlement under compliant presentation.	Documentary terms, counterparty quality, and margin.
Standby Letter of Credit	Payment or performance backing under trade contracts.	Applicant reimbursement under draw terms.	Trigger language, exposure limits, and collateral logic.
Borrowing Base Facility	Revolving line against inventory and receivables.	Controlled sales proceeds via monitored accounts.	Eligibility matrix, concentration caps, reporting discipline.
Pre-Export Finance	Funds procurement, processing, and logistics before sale proceeds.	Contracted export collections.	Offtake credibility, delivery plan, and performance history.
Inventory And Warehouse Receipt Finance	Bridge value locked in stored commodities.	Sale or release under control agreements.	Title chain, insurance, inspection, and collateral monitoring.
Receivables Monetization	Turn approved invoices into near-term liquidity.	Assigned collections from eligible buyers.	Obligor strength and enforceability of assignment.

Clear Process From Intake To Closing

Step	What We Do	Output
1) Transaction Intake	Review commodity type, trade route, contracts, and funding shortfall.	Feasibility screen and mandate scope.
2) Gap Diagnostic	Map full sources and uses across pre-shipment, in-transit, and post-delivery stages.	Written gap map with priority fixes.
3) Structure Design	Build blended solution across LC, inventory, receivables, and revolving lines.	Lender-ready structure memo.
4) Underwriting Package Build	Prepare credit file, compliance pack, and data room checklist.	Submission-grade package.
5) Targeted Lender Introductions	Introduce to matched banks and private credit providers.	Indicative terms, revisions, or written declines.
6) Term Negotiation	Compare economics, covenants, control terms, and draw mechanics.	Negotiated term path.
7) Documentation And Execution	Coordinate legal documentation and closing sequence.	Funding-ready execution plan.

What To Submit For A Quote

Trade summary with product, volume, route, and counterparties.
Purchase and sale contracts, plus any existing LC wording.
Current facilities and identified gap amount by stage.
Inventory and receivables data, including aging and concentration.
Logistics plan, warehouse controls, and insurance details.
Last 12 to 24 months financial statements.
Full KYC and AML package for onboarding.

Why Commodity Gap Financing Files Get Rejected

Weak contract mechanics. Trade clauses conflict with finance requirements.
No margin plan. Shortfall is known yet no credible solution is presented.
Poor collateral controls. Title, storage, and inspection evidence are incomplete.
Data quality problems. Receivables and inventory reports are inconsistent.
Unrealistic closing schedule. Credit, compliance, and legal steps are underestimated.

If your physical commodity transaction has a capital stack gap, submit your file. We build the structure, run targeted lender introductions, and support execution through underwriting and closing.