Important Disclosure. For corporate sponsors and accredited investors. Not a public offer. Local restrictions may apply. Prepared by FG Capital Advisors, August 2025.
Gap Funding for Physical Commodity Trades
FG Capital Advisors arranges short-tenor gap funding for physical commodity trades — also described as bridge loans for commodity transactions. Facilities cover pre-shipment, in-transit, and post-shipment cash gaps and are secured by inventory, receivables, or assigned LC proceeds. Structures are designed to match the cash-conversion cycle with objective collateral control and disciplined timelines.
Where Gap Funding Works
Pre-Shipment Bridge
Supplier deposits, inspection, or production prep ahead of LC issuance or advance payment. Secured by SBLC/APG or assignment of offtake proceeds.
Shipment-to-Collection Bridge
Cargo on water pending presentation and acceptance. Secured by title documents, collateral management, and LC proceeds assignment.
Post-Shipment / Receivables Bridge
Confirmed invoice waiting on payables cycle. Secured by receivables from rated buyers with notice and lockbox arrangements.
LC Discounting & UPAS
Sight or usance LC discounting to accelerate cash. May be paired with confirmation or insurance to release limits and tighten pricing.
Eligible Commodities & Corridors
Metals
Copper, nickel, zinc, aluminum, tin. Exchange-grade inventory with approved brands, inspection, and warehouse control.
Agriculture
Oilseeds and meals, sugar, rice, coffee and cocoa. Documentary control aligned to GAFTA/FOSFA terms where applicable.
Energy & Industrial
Base oils, fuel components, polymers, and fertilizers. Independent inspection and storage undertakings required.
Primary corridors include Africa, Latin America, and Asia with collection in hard currency. Country and counterparty limits apply.
Capital-Raising Process
Our role is arrangement and execution: sourcing lenders, aligning security and flow of funds, and coordinating to first draw.
Economics
Rate
Benchmark (SOFR / EURIBOR) plus a transaction-specific margin. Rate reflects tenor, collateral quality, route, and counterparty.
Bank Fees
May include facility and draw fees, confirmation (if LC-based) , advising, amendments, legal/documentation, inspection, warehousing, and insurance.
Indicative Term Sheet — Bridge Loans for Commodity Transactions
| Section | Key Terms |
|---|---|
| Borrower | Operating company or SPV acceptable to lenders, post-KYC/AML. |
| Facility Type | Short-tenor gap funding / bridge loan for commodity transactions; revolving or transaction-by-transaction. |
| Facility Size | Minimum USD 10,000,000 aggregate commitment; scalable with collateral and performance. |
| Tenor | 30–180 days typical; aligns to shipment and collection cycle. |
| Collateral | Any combination of: title documents and warehouse receipts; assignment of LC proceeds; receivables with notice and control; SBLC/APG support; insurance endorsements naming lender. |
| Advance Rate | Up to 80–90% on eligible, controlled collateral; lower where volatility or documentation risk is higher. |
| Pricing | Benchmark (SOFR / EURIBOR) + margin; fees as per lender tariff (facility, draw, legal, inspection, storage, advising/confirmation if LC-based). |
| Covenants | Eligible collateral tests, reporting (positions, docs, collections) , hedging policy if required, no junior liens, permitted payments per waterfall. |
| Conditions Precedent | Executed security and assignment documents, control agreements, insurance endorsements, compliance checks, and legal opinions. |
| Waterfall | Collections to controlled account; lender take-out; costs and fees; release of excess to borrower. |
| Events of Default | Non-payment, loss of collateral control, documentary defects not cured, sanctions issues, insolvency, covenant breaches. |
| FG Capital Advisors Fees | Mandate/Retainer: USD 40,000–60,000 (non-refundable). Success Fee: 3.0%–3.5% of funded or issued amounts (standard 3.25%) ; payable at signing/first draw per mandate. |
| Timeline | Complete file and aligned documentation: days; multi-jurisdiction or heavy security packages: weeks. |
| Governing Law | To be agreed, considering collateral location and lender requirements. |
The term sheet is indicative and subject to lender underwriting, limits, collateral verification, and final documentation.
Request Gap Funding for Physical Commodity Trades
Provide the corridor, product, counterparties, and target timeline. We will source lenders, align security, and deliver an executable term sheet for your bridge loan.
Start Your Trade Finance RequestFAQs
What qualifies as bridge loans for commodity transactions?
Short-tenor funding that covers documented gaps between purchase, shipment, and collection, secured by inventory, LC proceeds, or receivables.
Is confirmation or insurance required?
If risk appetite for the issuing bank or country is limited, a confirmed or insured LC route is used to improve funding terms.
What is the minimum facility?
USD 10,000,000 aggregate commitment. Smaller sizes rarely meet lender economics and limit requirements.
Do you fund directly?
No. We act as arranger and advisor, matching sponsors with suitable lenders and coordinating execution to first draw.
Disclaimer. Facilities are subject to underwriting, KYC/AML, country and counterparty limits, collateral eligibility, and documentation. Bank charges and third-party costs are separate from our fees.
