Notice. This page is informational and general in nature. Outcomes depend on counterparty acceptability, KYC and AML, sanctions screening, diligence, documentation, collateral controls, insurance, and third-party approvals. Obtain independent legal advice for contracts and enforceability.
Grains and Oilseeds Trade Finance
Grains and oilseeds are high-throughput markets. The commercial reality is simple: you buy, you ship, you store, you sell, and you settle. If liquidity does not keep pace with volumes, the book stalls.
FG Capital Advisors structures and coordinates trade finance for grains and oilseeds. We arrange working capital facilities, LC issuance capacity, inventory and receivables-backed lines, and transaction-specific structures that match real trade flows, with lender-grade controls and reporting.
Request A QuoteOutcomes Clients Use This For
- Increase purchase capacity with committed revolving liquidity tied to eligible trades.
- Add LC issuance headroom for imports, performance obligations, or supplier comfort.
- Finance inventory in transit and in storage under controlled release mechanics.
- Monetize receivables from strong buyers without starving the next cargo.
- Standardize controls across corridors to reduce constant exceptions and re-approvals.
Built for physical trade, not theoretical balance sheet slides.
Who This Is For
- Commodity traders with repeatable flows, clean documents, and measurable performance history.
- Importers, processors, and distributors with auditable inventory and receivables.
- Groups that can operate cash controls, reporting cadence, and collateral discipline.
- Teams that want a governed facility instead of one-off firefighting.
Commodity Coverage
We focus on financeable flows where documentation, quality control, custody, and cash collection can be mapped and governed. Soybeans and soy products are a core use-case, alongside the broader grains and oilseeds complex.
| Segment | Examples | Typical finance angles | Control points lenders care about |
|---|---|---|---|
| Soy complex | Soybeans, soybean meal, soybean oil | Import LCs, inventory finance, receivables facilities, prepayment structures where supported | Quality specs, inspection certificates, storage and release procedures, buyer payment mechanics |
| Grains | Corn, wheat, barley, sorghum | Borrowing base lines tied to eligible AR and inventory, trade receivables discounting | Weight and grade, shrink and loss allowances, warehouse receipts, claims and dispute process |
| Oilseeds | Rapeseed/canola, sunflower, other region-specific seeds | Seasonal working capital, import finance, inventory-backed liquidity during processing cycles | Seasonality risk, price risk management, collateral monitoring, insurance and title clarity |
| Processed flows | Crush outputs, refined oils, blended products | Receivables financing to blue-chip buyers, structured payables and trade settlements | Traceability, documentation integrity, contract enforceability, concentration limits |
What We Structure And Coordinate
We structure facilities that lenders can underwrite consistently and operators can run without constant deviations. The design always starts with trade flow reality: documents, cash routes, custody, and exceptions.
- Revolving trade facilities: committed working capital lines with eligibility rules and reporting cadence.
- Borrowing base facilities: availability tied to eligible receivables and eligible inventory, with haircuts, concentrations, and reserves.
- LC issuance capacity: LC sublimits, reimbursement terms, cash margin logic, and standard documentary requirements.
- Inventory and in-transit finance: controlled release mechanics, collateral monitoring, and insurance alignment.
- Receivables financing: discounting or purchase structures for eligible buyer receivables.
- Transaction-specific structures: tailored to corridor, counterparties, and documentation constraints, subject to lender policy.
All structures remain subject to third-party underwriting, approvals, and documentation.
What Lenders Underwrite In Grains And Oilseeds
| Underwriting focus | What we package | What it protects |
|---|---|---|
| Trade flow reality | Trade cycle mapping from purchase to sale, incoterms, documents, and cash settlement timing | Prevents facilities built on assumptions that fail on day one |
| Counterparty risk | Buyer and supplier mapping, performance history, concentrations, and dispute and claims profile | Reduces default and payment delay risk |
| Collateral and custody | Title, storage locations, warehouse receipts where applicable, release procedures, and monitoring plan | Ensures lenders can control collateral and limit leakage |
| Quality and shrink risk | Inspection regime, quality specs, regrade and claims process, loss and tolerance rules | Reduces disputes and collateral value impairment |
| Price and FX exposure | Exposure mapping, hedge policy where used, basis and timing sensitivity, stress framing | Stops margin shocks from becoming liquidity events |
| Controls and reporting | Borrowing base certificate logic, reporting cadence, audit rights, and exception handling | Creates predictable compliance, not surprise defaults |
Process
| Step | What we do | What you get |
|---|---|---|
| 1. Facility readiness screen | Confirm corridors, counterparties, documentation quality, collateral control feasibility, and lender fit. | A scoped intake list and a facility direction that matches the trade flow. |
| 2. Structure and controls design | Define eligibility, reserves, LC documentary requirements, cash routes, and exception playbooks. | A structure memo and a lender-ready facility outline. |
| 3. Lender pack and data room | Build a controlled data room and a package aligned to underwriting questions and control points. | A lender package designed to reduce cycles and prevent scope drift. |
| 4. Term sheet process | Coordinate targeted outreach and a disciplined term sheet process with suitable providers. | Indicative terms and a clear conditions precedent path to closing. |
| 5. Closing support and go-live | Support workstreams with counsel and third parties, align reporting, and operationalize controls. | A closing checklist, reporting templates, and an operating control map. |
FG Capital Advisors is not a bank and does not lend directly. We coordinate financing with third-party capital providers. Where regulated execution is required, it is handled by appropriately licensed counterparties. Outcomes remain subject to diligence, documentation, and approvals.
What To Send For A Quote
- Corporate profile, ownership, management, and KYC pack.
- Financial statements and management accounts, plus trade performance by corridor and commodity.
- Top buyers and suppliers, contract terms, payment terms, and any dispute history.
- Sample contracts, incoterms, documentary requirements, and logistics chain description.
- AR aging, inventory reports, storage locations, and insurance approach.
- Target facility size, currencies, LC needs, and desired tenor.
When It Does Not Fit
- Unverifiable physical flows or missing documentation and acceptance evidence.
- Unclear title, weak custody, or unwillingness to accept cash controls and reporting discipline.
- High dispute rates, unstable counterparties, or corridors that fail lender risk policy.
- Requests framed as guaranteed approvals, guaranteed pricing, or non-standard promises.
FAQ
Can this be structured specifically for soybeans?
Yes. Soybean flows are commonly financed when documentation, quality control, custody, and buyer payment mechanics can be governed. The facility is then calibrated to the soy cycle, including seasonality, storage, and settlement timing.
Do these facilities include letters of credit?
Often, yes. LC sublimits are common for import purchases and supplier comfort. Documentary requirements and reimbursement terms need to match the trade reality to avoid constant discrepancies.
Is a borrowing base always required?
Not always, but borrowing base structures are common because they align exposure to eligible receivables and eligible inventory. The exact approach depends on controls, counterparties, and lender policy.
What usually causes delays?
Missing documents, unclear custody or title, weak reporting capability, and unclear exception handling for claims, quality disputes, or delayed shipments. Most delays are preventable with proper structuring upfront.
Do you guarantee approvals?
No. We provide advisory and arrangement support on a best-efforts basis. Approvals depend on third-party underwriting, KYC and AML, sanctions screening, diligence, and legal documentation.
If you trade grains and oilseeds and want governed liquidity that scales with volumes, share your trade flow summary and financials to receive a scoped proposal.
Request A QuoteDisclosure. This content is for informational purposes and does not constitute legal, tax, accounting, or financial advice. FG Capital Advisors is not a bank or lender. Any support is provided on a best-efforts basis and remains subject to third-party approvals, diligence, and documentation.
