Professional Service. Page prepared September 2025. All facilities are subject to KYC/AML, sanctions screening, lender credit approval, and documentation. FG Capital Advisors acts as arranger and advisor.
Structured Trade & Commodity Finance — Term Sheet
For CFOs, treasurers, and heads of trade: this page spells out real terms for pre-export finance, borrowing base facilities, receivables finance, and LC issuance/confirmation. No vague promises—just what it takes to fund working capital against inventory, receivables, and contracted flows.
Facility Types
Pre-Export Finance (PXF)
Fund production and logistics against contracted exports. Assignment of proceeds, shipment controls, and price hedging keep lenders calm and lines usable.
Borrowing Base / Inventory Finance
Revolver against eligible stock and receivables. Controls include CMAs, control accounts, inspection, and insurance with loss-payee endorsements.
Receivables Finance / Forfaiting
Discount accepted usance LCs or strong AR with clean exit at maturity. Concentration limits and aging tests apply.
LC Issuance & Confirmation
Commercial LCs, transferable LCs, red/green clause, and deferred payment LCs. Optional confirmation and discounting. Margin funding paths available case by case.
Term Sheet
| Item | Term | Notes |
|---|---|---|
| Borrower | Operating company or ring-fenced SPV | Audited financials and clean KYC |
| Facility Type | PXF • Borrowing Base • Receivables • LC related | Final structure set after underwriting |
| Size | USD/EUR 5m–150m+ | Based on collateral, contracts, and limits |
| Tenor | PXF 6–24 months; RCF evergreen with annual review; LC usance up to 180 days | Stage drawdowns by season/shipment |
| Advance Rates | Inventory 50–85%; AR 70–90%; pre-shipment 50–70% | By commodity, location, insurance, hedging |
| Pricing | SOFR/EURIBOR + margin; floors apply | Margin set by risk grade and liquidity |
| Security | All-asset debenture or specific pledges | Assignment of proceeds, CMAs, control accounts, escrow |
| Hedging | Required for price-exposed flows | ISDA/CSA or exchange-cleared |
| Insurance | Cargo/storage, trade credit, political risk as needed | Lenders as loss-payee |
| Covenants | Borrowing base tests, NWC, DSCR, eligibility rules | Concentration and aging limits enforced |
| Events of Default | Payment, covenant breach, MAC, sanctions breach | Step-in rights, cash sweep |
| Law | England & Wales / New York (typical) | To be agreed |
Numbers move with collateral quality, country risk, and market liquidity. We price and size after a short underwriting sprint.
Eligibility & First Screens
Baseline
- 3+ years operating history or strong sponsors
- Audited financials; workable leverage
- Named buyers/suppliers and traceable flows
- Sanctions-safe corridors; ESG red-flag scan
Collateral Hygiene
- Warehouse/terminal controls and independent checks
- Title docs and inspection/assay where relevant
- Borrowing base data feeds and reconciliation
- Insurance binder with loss-payee endorsements
Underwriting & Structuring Fees
Arranger Economics
- Structuring Fee: USD 75,000–250,000 retainer; covers modeling, collateral map, term sheet, and data room standards (creditable in part at close)
- Underwriting/Arrangement Fee: 0.75%–2.00% of facility size, paid at signing/close
- Agency/Monitoring: USD 25,000–75,000 per year, facility complexity dependent
- Commitment Fee: 25–75 bps on undrawn, where applicable
- Amendments/Consents: case by case; third-party costs pass-through
Lender Side
- Margin over benchmark and floors by risk grade
- LC issuance/confirmation and discount fees as quoted
- Borrower pays external DD: legal, inspection, technical
Fees are confirmed after credit approval. No games.
Full Scope of Services
Underwriting & Modeling
Cash cycle model Borrowing base Commodity logistics map
- Counterparty and corridor risk file
- Advance rate logic and stress tests
- Hedging and insurance plan that matches flows
Documentation & Controls
Term sheets CMAs Control accounts
- Assignment of proceeds, escrow mechanics
- Eligibility tests, concentration and aging rules
- LC text and confirmation options that reduce refusals
Execution & Monitoring
Syndication KYC/AML CP chase-down
- First draw and settlement playbooks
- Borrowing base certificates and reconciliations
- Event management for shortfalls and disputes
Process & Timeline
| Step | Timing | Output |
|---|---|---|
| Inquiry & Screening | 1–2 weeks | Go/No-Go, target structure, lender shortlist |
| Underwriting Sprint | 2–4 weeks | Model, collateral map, term sheet, doc list |
| Credit & Documentation | 4–8 weeks | Approvals, facility docs, CP checklist |
| Close & First Draw | 1–2 weeks after CPs | Funds/L/Cs live; monitoring cadence set |
Slowdowns come from weak data, unclear collateral rights, or audit backlogs. We fix what’s fixable and cut what isn’t.
FAQ — What Buyers Ask Before They Mandate Us
Who is this for?
CFOs, treasurers, and heads of trade at mid-market producers, global distributors, and commodity traders that need working capital against inventory, receivables, or export contracts.
What size deals do you arrange?
USD/EUR 5m to 150m+. Bigger is possible with syndication and clean collateral.
What advance rates can we expect?
Inventory 50–85%, AR 70–90%, pre-shipment 50–70%. Final levels depend on commodity, location, hedging, insurance, and buyer quality.
How is pricing set?
Benchmark (SOFR/EURIBOR) plus a margin. Floors apply. Margin tracks risk grade, liquidity, and controls.
Do you arrange LC confirmation and discounting?
Yes. We line up confirming banks and discount options. We also help with LC text to cut refusal risk.
Do we need trade credit insurance?
Often yes for receivables-heavy borrowing bases. We place TCI and make lenders loss-payee.
Can you work with warehouse receipt finance and CMAs?
Yes. We standardize CMAs, control accounts, and inspection so lenders can rely on the numbers.
What documents do you need to start?
Audited financials, buyer/supplier lists, contracts, AR/AP aging, stock by location, insurance binders, corporate chart, and KYC pack.
We’re in frontier markets. Is that a problem?
Not by default. We check sanctions, political risk cover, collateral control, and exit routes. If those boxes tick, we proceed.
Can you help if our bank pulled lines?
Possibly. If we can prove collateral and cash flows, we bring in lenders open to asset-backed trade exposure. If not, we tell you fast.
Do you offer Islamic trade finance (e.g., Murabaha)?
We can arrange Sharia-compliant structures with partner lenders where the commodity and flows fit.
What are your fees?
Structuring fee (USD 75k–250k), arrangement 0.75%–2.00% of facility, agency/monitoring USD 25k–75k/yr, plus standard commitment and pass-through DD costs. Final numbers follow credit approval.
Request a Structured Trade & Commodity Finance Proposal
Send your contracts, stock/AR data, and corridor map. We’ll return a straight view of size, price, and what it takes to close—plus a term sheet your board can sign off on.
Start Your IntakeDisclaimer. Terms are subject to lender credit approval and documentation. FG Capital Advisors is an arranger and advisor; regulated activities are performed by licensed partners. We don’t work on transactions that breach sanctions or AML rules.
