Public Commentary: The material below outlines FG Capital Advisors’ approach to short-term trade-finance loans. It is provided for informational purposes only and does not constitute investment advice or a solicitation.
Short-Term Trade-Finance Loans — Rapid Working-Capital for Cross-Border Transactions
Global supply-chain disruptions and longer shipping times are stretching cash cycles. Short-term trade-finance loans—30 to 180 days—bridge the funding gap between purchasing inventory and collecting receivables, without diluting equity or tying up revolving-credit limits. FG Capital Advisors arranges tailored pre-shipment and post-shipment facilities that align tenor, currency, and collateral with each trade flow.
Product Matrix
| Facility | Use of Proceeds | Tenor | Advance Rate | All-in Cost* |
|---|---|---|---|---|
| Pre-Shipment Trade Loan | Purchase raw materials or finished goods prior to export | 30 – 120 days | Up to 85 % of confirmed order value | SOFR + 450–650 bps |
| Post-Shipment Receivables Loan | Bridge cash gap after shipment until buyer payment | 30 – 150 days | Up to 90 % of invoice amount | SOFR + 425–625 bps |
| Import Bridge Loan | Pay suppliers on sight terms; repay from inventory sales | 45 – 180 days | Up to 80 % of CIF value | SOFR + 475–700 bps |
*Excludes flat arrangement fee 0.75–1.25 % and pass-through due-diligence costs.
Eligibility Criteria
- Audited Financials: Minimum three-year track record or verified trading history.
- Documented Trade Flow: Purchase orders, sales contracts, or LCs in place.
- Recognised Counterparties: Buyers / suppliers with acceptable credit standing.
- Collateral Controls: Warehouse receipts, bills of lading, or assignment of proceeds.
- Compliance: Transaction free of sanctions exposure; full AML/KYC documentation.
15-Day Execution Roadmap
Day 1–3 | Pre-Screening
— Submit financials, trade docs, KYC pack.
Day 4–6 | Indicative Offer
— Term sheet issued; borrower acceptance.
Day 7–11 | Due Diligence
— Collateral audit, counterparty checks, draft loan agreement.
Day 12–14 | Credit Approval
— Lender IC sign-off; CP checklist circulated.
Day 15 | Funding
— Documents executed; funds disbursed.
Key Success Factors
- Real-Time Collateral Visibility: Independent inspections and tracking reduce advance-rate haircuts.
- Currency Alignment: Matching loan and transaction currency avoids FX-mismatch risk.
- Efficient Shipping Docs: Accurate BLs, packing lists, and certificates ensure swift drawdowns.
- Proactive Communication: Rapid Q&A turnaround keeps closing schedule on track.
Engagement
Importers, exporters, and commodity traders requiring short-term liquidity are invited to contact FG Capital Advisors. We can provide an indicative quote within three business days of receiving transaction details.
This document has been prepared solely for informational purposes. It does not constitute investment advice and should not be interpreted as an offer to buy or sell any security, financial instrument, or service. Independent professional guidance is recommended before acting on any information herein.
