Metals Trade Finance | FG Capital Advisors

Notice. FG Capital Advisors is a trade and capital advisory firm focused on commodities, structured trade finance, and private credit. The firm provides financial modelling, due diligence support, structuring, and sponsor side advice around borrowing base facilities, inventory and receivables finance, repo and tolling structures, and LC or guarantee backed working capital. FG Capital Advisors is not a bank, lender, credit insurer, broker dealer, or retail investment adviser and does not issue loans, guarantees, or insurance products. Any facility, guarantee, LC, or investment is provided by regulated counterparties under their own licences and documentation. All potential transactions are subject to KYC and AML checks, sanctions screening, credit and investment committee decisions, independent legal and tax advice on the client side, and formal agreements with those regulated entities.

Metals Trade Finance

Base and ferrous metals, concentrates, and semi finished products carry warehouse, quality, and counterparty risks that credit teams understand well. What they want to see is disciplined stock control, clear title, transparent off take, and a financing structure that matches the physical chain.

FG Capital Advisors works with metals traders, processors, and industrials that need bank grade trade finance for copper, aluminium, zinc, nickel, steel, scrap, and related flows. Mandates focus on borrowing base and repo structures, tolling and processing linked facilities, and LC backed trades that can move through credit committees without guesswork.

Request Metals Trade Finance Discussion

What We Cover In Metals Trade Finance

Metals trade finance work is built around documented flows, storage, and contracts rather than general commodity templates. Typical mandate scope includes:

  • Borrowing base facilities secured on on warrant and off warrant inventory, in transit and at processors, with eligibility criteria by metal, form, location, and counterparty.
  • Inventory repo and stock finance structures over exchange and non exchange warehouses, including title transfer mechanics, margining, and exit paths that suit both sponsor and lender.
  • Pre export and prepayment facilities for concentrates and refined metal, anchored in long term offtake or supply contracts, with assigned receivables and ring fenced collection accounts.
  • Tolling and processing linked facilities that fund concentrates into smelters or processors and back, with risk allocation between miner, trader, and processor set out clearly.
  • Import and export LCs, SBLCs, and guarantees tied to metals shipments under FCA, FOB, CIF, CFR, and similar terms, including confirmation and risk participation where needed.
  • Receivables and payables finance structures for sales to industrial buyers, mills, and stockists, including obligor limits and concentration controls.
  • Restructuring of metals trade facilities after price shocks, basis moves, or logistics disruption, including revised collateral packages and covenant frameworks.

Structures are calibrated to grade differentials, logistics bottlenecks, and historical margin behaviour, not generic balance sheet ratios alone.

Who This Metals Service Is For

Metals trade finance mandates are aimed at counterparties that already manage real flows and balance sheets and need facilities that reflect that reality.

  • Base metals traders active in copper, aluminium, zinc, lead, nickel, and associated products.
  • Ferrous and steel traders, mills, and distributors with stock heavy working capital cycles.
  • Concentrate producers and offtakers moving volumes into smelters, refineries, and processors under long term contracts.
  • Scrap and recycling operators with recurring flows and documented counterparties.
  • Industrial buyers with material metal inputs that want structured stock and receivables finance instead of unsecured overdrafts.

Shell entities, undocumented one off arbitrage proposals, and clients seeking instruments without underlying trade are not in scope.

Pricing For Metals Trade Finance Mandates

Fees are set so that sponsors receive bank level work from the outset. All fees are quoted in writing and paid by bank transfer. Legal, collateral management, inspection, and any other third party costs remain separate and are contracted directly between the sponsor and those providers.

  • Metals Trade Finance Diagnostic
    High level feasibility and options memo based on metals flows, inventory profile, counterparties, and existing facilities. Typical fee range USD 18,000 to 32,000.
  • Single Facility Structuring Mandate
    One borrower and one core facility, such as a metals borrowing base, repo line, or tolling linked trade facility, including modelling and lender pack. Typical fee range USD 45,000 to 110,000.
  • Multi Facility or Multi Bank Programme
    Frameworks across several warehouses, jurisdictions, or lender groups. Typical fee range USD 115,000 to 230,000+.

As a baseline, at least fifty percent of the agreed advisory fee is payable on signing the engagement letter, with the remainder due on delivery of the main structuring outputs. Success linked economics, where allowed and agreed, are always separate from advisory fees.

Sponsors with budgets below approximately USD 20,000 for metals trade finance advisory will not be a fit for this service.

Frequently Asked Questions

Do you work with exchange warehouses only or also off warrant storage?
Both can be in scope. The key questions for lenders are control, title, insurance, and exit mechanics. Well documented off warrant structures with credible warehouse operators and collateral managers are often financeable, provided those building blocks are in place.

Can you support junior miners or early stage projects?
Yes, where there is credible offtake, experienced management, and a clear path to production or ramp up. Pure exploration without near term cash flow is normally better suited to equity and project finance specialists rather than trade facilities.

Do you only work with large international traders?
No. Mid sized traders, processors, and industrials with audited accounts and consistent flows are often ideal candidates. The common feature across clients is a willingness to share information at the level that banks and funds expect.

Can you help if current facilities are under pressure?
Yes. Metals trade finance restructuring is a recurring part of the work, especially after price and basis moves. The starting point is a clear view of covenant headroom, collateral coverage, and what a revised structure would need to look like for lenders to stay in.

What information is required before you quote a fee?
At minimum, recent audited and management accounts, a breakdown of metals flows and margins, inventory reports, key contracts, warehouse and logistics arrangements, and current facility documentation. Without that base, any serious quote is guesswork.

Metals trade finance is credit intensive. The sponsors that secure stable lines are the ones that can present inventory, flows, and risk in a form that credit teams recognise and can sign off.

If your metals business is ready for a structured approach to trade finance rather than incremental overdraft requests, share a concise overview of your position. FG Capital Advisors will respond with a view on fit and a fixed fee quote inside the ranges above.

Submit Metals Trade Finance Enquiry

Disclosure. FG Capital Advisors provides financial modelling, analytical, and advisory services. The firm does not originate, offer, or sell securities, loans, deposits, guarantees, or insurance products and does not accept client money. Any trade finance facility, SBLC, bank guarantee, documentary LC, UPAS LC, derivative, or investment product referenced on this page is carried out by regulated entities under their own licences, terms, and documentation. Metals trade finance advisory informs decisions that involve credit, performance, operational, legal, policy, and market risk. Nothing on this page is a recommendation or a solicitation to enter into any transaction or to buy or sell any financial product. Any engagement with FG Capital Advisors is subject to internal approval, conflict checks, KYC and AML checks and sanctions screening where required, and the terms of a formal engagement letter.