Structured Trade & Commodity Finance
FG Capital Advisors advises commodity producers, traders, processors, importers, exporters and distributors on structured debt facilities built around physical trade flows, inventory, receivables, export contracts and controlled repayment proceeds.
Mandates cover facility structuring, lender preparation, transaction packaging, targeted capital-provider distribution, term sheet negotiation and borrower-side execution through financial close.
Start Client IntakeStructured Finance Built Around the Commodity Cycle
A trade finance facility has to reconcile the purchase contract, supplier payment requirement, title transfer, logistics route, inventory position, sale contract and final collection account. Lenders underwrite the complete cash conversion cycle and the controls surrounding it.
FG Capital Advisors works on transactions where debt repayment can be linked to identifiable commodity flows, contracted sales, eligible inventory, receivables or other defensible sources of repayment. The advisory mandate is structured around the credit case that the relevant bank, trade finance fund or private credit provider will ultimately have to approve.
Clients requiring a more detailed breakdown of facility mechanics can also review our trade and commodity finance structuring services.
Who We Advise
Commodity Traders
Trading companies financing purchase, shipment, storage and resale of physical commodities across domestic and cross-border supply chains.
Producers
Mining, energy and agricultural producers seeking working capital against production, inventory, export contracts or committed offtake.
Processors
Refiners, mills, processors and manufacturers financing raw material procurement, work-in-progress inventory and receivables.
Importers
Commercial buyers requiring letters of credit, purchase finance, inventory facilities or working capital around imported goods.
Exporters
Export businesses financing procurement, production, logistics or the period between shipment and receipt of buyer proceeds.
Distributors
Businesses carrying material inventory or receivable balances across recurring commodity and goods distribution programs.
Structured Trade & Commodity Finance Facilities
Borrowing Base Facilities
Revolving debt availability calculated against eligible inventory, receivables or other approved commodity-linked collateral.
Typical work includes eligibility rules, advance rates, concentration limits, reserves, reporting mechanics and collateral controls.
Pre-Export Finance
Working capital raised against contracted or recurring export flows to fund production, procurement, processing and logistics ahead of shipment and collection.
Prepayment Finance
Facilities structured around committed commodity deliveries and future receivables, commonly involving an offtaker, trader or financing vehicle.
Inventory Finance
Debt secured against controlled commodity or goods inventory held in approved storage locations, warehouses or other monitored facilities.
Receivables Finance
Financing against eligible invoices and trade receivables, structured around obligor quality, payment history, dilution, concentration and assignment mechanics.
Letter of Credit Facilities
Documentary letter of credit, usance and UPAS structures supporting procurement and cross-border settlement where bank instruments form part of the trade cycle.
Warehouse Finance
Facilities using controlled stock, warehouse receipts, collateral management arrangements and release mechanics to support lender security.
Transactional Trade Finance
Short-duration facilities tied to identifiable purchase and sale contracts where funding is required for a defined trade cycle.
Structured Working Capital
Revolving facilities combining inventory, receivables, purchase requirements and other elements of the commodity operating cycle.
For transaction-specific examples, see our coverage of structured trade finance for physical commodity transactions.
How We Structure the Credit
The relevant financing structure is developed from the underlying transaction rather than a predetermined facility template. The underwriting workstream maps the complete movement of cash, documents and collateral from initial funding through repayment.
Trade Flow
Purchase contracts, sale contracts, payment terms, Incoterms, delivery obligations, shipment timing and settlement mechanics.
Counterparties
Supplier, buyer, offtaker, warehouse, logistics provider, insurer, inspection company and other parties material to the credit.
Collateral
Inventory, receivables, controlled accounts, contract assignments, guarantees and other assets supporting lender recovery.
Advance Rates
Availability calibrated to commodity liquidity, price volatility, ageing, obligor risk, collateral control and historical performance.
Cash Control
Collection accounts, payment waterfalls, blocked accounts, assignments and contractual controls directing repayment proceeds.
Risk Management
Commodity price exposure, foreign exchange, insurance, hedging, concentration, operational risk and collateral deterioration.
Borrowing Base Finance for Commodity Businesses
Borrowing base structures are commonly used where a borrower carries recurring inventory and receivables that can support a revolving facility. Availability moves with the eligible collateral pool rather than remaining disconnected from the underlying trading activity.
| Component | Structuring Focus | Lender Considerations |
|---|---|---|
| Inventory | Commodity type, location, title, ageing, valuation and release mechanics. | Liquidity, volatility, control, insurance and recovery value. |
| Receivables | Eligible invoices, obligor concentration, payment terms and dilution. | Debtor quality, disputes, ageing and enforceability of assignment. |
| Advance Rates | Percentage applied to each eligible collateral category. | Expected liquidation value and downside protection. |
| Reserves | Deductions for concentration, ageing, price exposure and other risks. | Protection against collateral deterioration or over-advance. |
| Reporting | Borrowing base certificates, inventory reports, receivables ageing and covenant reporting. | Frequency, reliability and independent verification. |
| Cash Sweep | Application of collections against the revolving balance. | Control over repayment proceeds and re-borrowing mechanics. |
Pre-Export and Offtake-Backed Financing
Pre-export financing is relevant where producers or processors require liquidity before goods are delivered and export proceeds are collected. The credit case typically depends on a documented production capability, identifiable export contracts, credible buyers and a controlled route for repayment proceeds.
Production & Delivery
Historical production, operational capacity, cost base, logistics, delivery schedule and ability to perform against the contracted export program.
Offtake & Collections
Offtaker quality, contract tenor, payment terms, assignment of proceeds, collection accounts and lender access to the repayment stream.
What Capital Providers Underwrite
The commodity alone does not determine financeability. The lender must be able to understand and control enough of the transaction to support its credit decision.
FG Capital Advisors' Mandate Scope
Underwriting Review
Review of financials, trade history, contracts, counterparties, collateral, transaction economics and proposed repayment.
Facility Structuring
Development of facility type, amount, tenor, advance rates, eligibility rules, reserves, security and cash-control mechanics.
Lender Materials
Preparation and organization of the credit case, transaction summary, financial analysis and supporting underwriting package.
Capital Provider Selection
Identification of banks, trade finance funds, private credit funds and specialty lenders aligned with the transaction profile.
Term Sheet Process
Coordination of lender discussions and comparison of pricing, advance rates, tenor, covenants, security and conditions precedent.
Execution
Borrower-side coordination across due diligence, legal documentation, collateral workstreams and conditions precedent toward financial close.
Companies requiring lender introductions as part of a broader mandate can also review our trade finance lender introduction services.
Structured Trade Finance Execution Process
Client Intake
The borrower submits the financing requirement, transaction description and available supporting documentation.
Deal Review
FG Capital Advisors reviews the borrower, commodity, counterparties, contracts, economics, collateral and repayment source.
Structuring
The proposed facility is developed around the trade cycle, collateral position, debt capacity and lender requirements.
Deal Packaging
Financial analysis, lender materials, supporting schedules and the transaction data room are prepared for underwriting.
Distribution
Under a placement mandate, the transaction is introduced to selected capital providers with relevant trade and commodity finance appetite.
Term Sheet & Closing
Lender diligence, commercial terms, documentation and execution workstreams are coordinated toward financial close.
For a more detailed view of common commercial terms, review our structured trade and commodity finance term sheet.
Information Required for a Trade Finance Mandate
Corporate & Financial
- Group and ownership structure
- Audited or reviewed financial statements
- Current management accounts
- Existing debt facilities
- Working capital and cash flow information
- Banking relationships
Transaction & Trade Flow
- Purchase and sale contracts
- Commodity specifications
- Supplier and buyer details
- Historical trade volumes
- Inventory and receivables data
- Logistics and storage arrangements
Collateral
- Inventory reports
- Receivables ageing
- Warehouse information
- Insurance coverage
- Existing liens and security
- Collateral management arrangements
Execution
- Financing amount
- Currency
- Use of proceeds
- Required drawdown date
- Existing lender discussions
- Available term sheets or financing proposals
Submit a Structured Trade & Commodity Finance Mandate
Submit the company, financing amount, commodity, use of proceeds, transaction flow, counterparties and available supporting documents through FG Capital Advisors' client intake.
Qualified transactions can proceed to a paid advisory mandate covering structuring, lender preparation and, where applicable, placement and execution.
Start Client IntakeFrequently Asked Questions
What types of companies use structured trade finance?
Commodity producers, traders, processors, importers, exporters and distributors commonly use structured trade finance where working capital requirements can be linked to identifiable physical trade flows, collateral or receivables.
What is a commodity borrowing base facility?
A borrowing base facility provides revolving debt availability against a defined pool of eligible collateral, commonly inventory and receivables. Availability is recalculated periodically using agreed advance rates, eligibility rules and reserves.
Can inventory be used to support financing?
Yes. The financing structure depends on the commodity, ownership and title, storage location, market liquidity, valuation, insurance, monitoring and the lender's ability to control or enforce against the collateral.
Can receivables support a commodity finance facility?
Yes. Lenders may finance eligible receivables based on obligor quality, ageing, concentration, dilution, payment history, assignment mechanics and any applicable credit insurance.
What is pre-export finance?
Pre-export finance provides working capital before export proceeds are received. Facilities may support production, procurement, processing or logistics and are typically structured around future export cash flows and identifiable repayment proceeds.
Can letters of credit form part of the structure?
Yes. Documentary letters of credit, usance LCs, UPAS LCs and other bank instruments can form part of the purchase or payment mechanics where appropriate to the underlying transaction.
Does FG Capital Advisors provide the financing directly?
No. FG Capital Advisors acts as an advisor and arranger. Financing is provided by banks, funds and other eligible capital providers that make their own independent underwriting and credit decisions.
Is financing guaranteed?
No. Financing remains subject to lender appetite, underwriting, KYC, AML and sanctions review, collateral diligence, legal documentation, internal credit approval and other transaction conditions.
What happens after client intake?
FG Capital Advisors reviews the transaction information and determines whether the mandate falls within its advisory scope. Qualified transactions can then proceed under an agreed paid engagement.
Can FG Capital Advisors work on cross-border commodity trades?
Yes, subject to the transaction, jurisdictions, counterparties, sanctions position, enforceability, currency, logistics and the availability of appropriate capital providers.
Disclosure. FG Capital Advisors provides sponsor-side and borrower-side advisory, structuring and capital placement support. FG Capital Advisors is not a bank, direct lender, insurer, warehouse operator, collateral manager or custodian of client funds. Nothing on this page constitutes a lending commitment, guarantee of financing, legal advice, tax advice or an offer of securities. All transactions remain subject to independent lender underwriting, counterparty acceptance, KYC, AML and sanctions screening, collateral review, legal due diligence, definitive documentation and final credit approval.
