Notice. This page is informational and general in nature. Financing outcomes depend on counterparty acceptability, KYC and AML, sanctions screening, diligence, documentation, collateral controls, and third-party approvals. Obtain independent legal advice for contracts and enforceability.
Self-Liquidating Trade Finance Bridge Loans
Physical commodity transactions can be profitable and still fail due to timing. Bridge loans address the gap between supplier payment and buyer collection with short-tenor trade finance structured to be repaid from the transaction’s own proceeds.
FG Capital Advisors packages and places bridge loans for physical commodity transactions where repayment is tied to controlled documents, title and custody logic, and a defined proceeds waterfall.
Request A QuoteOutcomes Clients Use This For
- Pay suppliers on time without compressing trading margin through emergency liquidity.
- Fund lift and transit periods until delivery, acceptance, and buyer payment.
- Monetise receivables where invoices are issued on terms.
- Increase executable volume by matching funding to shipment cycles and controls.
Common searches: trade finance bridge loans, commodity trade finance, short term trade finance, supplier payment financing, in-transit finance, warehouse financing, trade receivables finance.
Typical Transaction Lanes
- Supplier payment bridge for back-to-back buy and sell transactions.
- In-transit finance linked to shipping milestones and compliant documents.
- Inventory and warehouse-control structures where release is controlled.
- Receivables takeout once delivery and invoicing are evidenced.
What Makes A Transaction Financeable
Bridge loans in trade finance are underwritten on evidence and control. We structure transactions so repayment is driven by documents and proceeds, not informal expectations.
- Document conditioning: invoice, packing list, bill of lading or air waybill, inspection, insurance, and COA or COO where relevant.
- Title and custody mapping: ownership points, custody regime, and release controls that prevent diversion.
- Proceeds waterfall: buyer payments routed through defined accounts with repayment priority.
- Exception workflow: defined handling of delays, discrepancies, partial deliveries, and quality disputes.
Process
| Step | What we do | What you get |
|---|---|---|
| 1. Transaction screen | Confirm the transaction is physical, documentable, and aligned to lender controls and corridor constraints. | A feasibility view and a transaction-specific intake list. |
| 2. Underwriting pack | Build a lender-ready pack with control points, documents, and proceeds logic aligned to repayment. | A pack designed to reduce underwriting loops and exceptions. |
| 3. Term sheet placement | Run a structured term sheet process with capital providers suited to the transaction profile. | Executable terms with clear conditions precedent and operating mechanics. |
| 4. Close and operate | Coordinate funds flow, controls, and reporting so the transaction remains controlled through delivery and collection. | Funds flow map, reporting templates, and exception handling workflow. |
FG Capital Advisors is not a bank and does not lend directly. We coordinate financing with third-party capital providers. All outcomes remain subject to diligence, documentation, and approvals.
What To Send For A Quote
- Commodity, corridor, Incoterms, shipment size, and schedule.
- Purchase contract and resale contract, or PO and offtake.
- Counterparty details for KYC and sanctions screening.
- Inspection plan and insurance approach.
- Payment mechanics and collection route (LC, CAD, or defined buyer terms).
When It Does Not Fit
- No identifiable buyer and supplier counterparties.
- Unverifiable documents, custody, or shipment plan.
- Repayment not tied to contracted sale proceeds.
- Requests framed as investment programs or returns products.
FAQ
What does “self-liquidating” mean in a trade finance bridge loan?
It means the loan is structured to be repaid from the transaction’s own cash proceeds, typically at buyer payment, supported by controlled documents and a defined proceeds waterfall.
What types of physical commodity transactions are eligible?
Transactions are typically evaluated based on commodity type, corridor, counterparties, documentation quality, custody and title controls, inspection and insurance plan, and the repayment path to collection.
Can bridge loans fund supplier prepayments?
In some cases, yes, where there is a matched resale and a control framework that supports underwriting. Feasibility depends on counterparties, documents, and the ability to control proceeds.
Do you support in-transit, inventory, and receivables-backed structures?
Yes, where the control stack is consistent and enforceable. The structure may be tied to shipping milestones, warehouse release controls, and receivables eligibility rules.
Do you use letters of credit in these structures?
Where appropriate, documentary letters of credit can support payment mechanics and reduce collection risk. Suitability depends on the underlying contracts and bank policy.
What are the most common reasons a deal fails to fund?
Weak documentation, unclear title or custody, unacceptable counterparties, and repayment paths that are not anchored to controlled proceeds.
Do you guarantee funding?
No. Funding is subject to third-party underwriting, KYC and AML, sanctions screening, diligence, and documentation.
If you have a defined physical commodity buy and sell, and need short-tenor trade finance to execute without disrupting margin, share your contracts and shipment plan to receive a quote.
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.
