Soft Commodities Trade Finance | FG Capital Advisors

Notice. Advisory services only. We are not a lender. Facilities are subject to counterparty approvals, due diligence, KYC and AML, and definitive documentation. Information is indicative and may change without notice.

Soft Commodities Trade Finance

What We Deliver

We structure and arrange trade finance for grains, oilseeds, sugar, coffee, cocoa, and cotton across origination, aggregation, storage, and export cycles. Facilities support traders, cooperatives, processors, and distributors handling seasonal cash flow gaps, shipment financing, or inventory build-ups. Our role covers lender preparation, risk analysis, documentation, and execution through to first draw.

Facility Spectrum

  • UPAS LC and deferred LC with discounting and confirmation
  • SBLC and DLC issuance for payment and performance
  • Borrowing base over inventory, receivables, or warehouse receipts
  • Prepayment structures with collateralized offtake contracts
  • Repo and title transfer under collateral management agreements
  • Receivables purchase, payables finance, and distributor credit
  • Gap financing for logistics or margin requirements
  • Structured equity for warehouse and processing expansion

Facility Sizes and Coverage

  • Ticket size: 500,000 to 10,000,000 USD per borrower
  • Expandable through repeat performance or syndicate partners
  • Regions: Sub-Saharan Africa, LATAM, MENA, South Asia, and Eastern Europe
  • Commodities: grains, pulses, oilseeds, sugar, coffee, cocoa, cotton, tea

Eligibility and Required Materials

Eligibility

  • Existing supply or offtake contracts with credible buyers
  • Warehouse access or collateral management framework
  • Audited trade data, PnL evidence, or pilot shipment history
  • Governance and compliance standards with clean sanctions profile

Required Materials

  • Trade flow summary with Incoterms, routes, and shipment plans
  • Quality specs, grading, moisture content, and inspection regime
  • Pricing formulas, discount structure, and FX exposure details
  • Financials, insurance, and storage agreements

We issue a checklist and data room index at intake. Mandates proceed only once documentation is complete.

Risk Controls and Execution

Risk Controls

  • Collateral management agreements with independent inspectors
  • Title transfer or pledge with possession control and stock verification
  • Borrowing base limits with eligibility and concentration rules
  • Insurance covering stock in store and transit, lender loss payee endorsed
  • Sanctions, AML, and UBO checks across counterparties and storages
  • Optional FX and commodity hedging programs

Execution Timeline

  • Week 1: mandate, eligibility screen, and document gap list
  • Weeks 2–3: data room and term sheet targeting
  • Weeks 4–5: credit review, CP schedule, and documentation
  • Week 6: first draw post-CP clearance and facility approval

Sample Term Sheet (Illustrative)

Borrower Soft commodities trader, cooperative, or processor
Facility Revolving borrowing base secured by warehouse receipts and receivables
Facility Size Up to 10,000,000 USD initial commitment, expandable based on trade cycles
Tenor 180–364 days revolving; shipment tenor up to 120 days
Pricing SOFR or EURIBOR + margin per risk band; LC and confirmation fees per schedule
Fees Arrangement and upfront fees; commitment fee on undrawn; inspection costs pass-through
Collateral Title or pledge over inventory; receivables assignment; escrow and control accounts
Gap / Equity Layer Short-term gap funding for collateral or logistics; structured equity for warehouse expansion
Covenants Borrowing base compliance, minimum equity, sanctions warranties, audit cadence, and inspection intervals
Conditions Precedent KYC and AML clearance, CMAs, insurance, legal opinions, and security perfection
Governing Law England and Wales or New York, as agreed

This sample is indicative and non-binding. Final terms are defined in definitive documentation after underwriting.

Start Client Intake

Book a consultation or request a quote. We structure and arrange soft commodities trade finance lines for exporters, cooperatives, and processors across emerging and developed markets.

Open Client Intake

Disclosures. We act as advisors. Facility outcomes depend on counterparties, collateral, and documentation. Fees and reimbursables are defined in the engagement letter. No guarantee is made regarding timing or approvals.