Notice. This page is informational and general in nature. 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.
Syndicated Revolving Credit Facility For Commodity Traders
Growing a commodity trading book requires reliable revolving liquidity, not one-off fixes. A syndicated revolving credit facility can support larger limits, diversify lender exposure, and provide multi-currency working capital with lender-grade control and reporting.
FG Capital Advisors structures and coordinates syndicated revolving credit facilities for commodity traders, typically anchored to a borrowing base tied to eligible receivables and inventory, with cash controls and covenant discipline aligned to the operating reality of physical trade.
Request A QuoteOutcomes Clients Use This For
- Increase executable volumes with committed revolving capacity.
- Replace fragmented bilateral lines with one governed facility and clear controls.
- Add LC issuance capacity through defined LC sublimits and standard wording.
- Support multi-origin sourcing and multi-buyer sales under a consistent reporting regime.
Common searches: syndicated RCF, borrowing base facility, commodity trader credit facility, working capital facility, LC sublimit.
Who This Is For
- Established commodity traders with repeatable physical flows and clean documentation.
- Importers, distributors, and processors with measurable inventory and receivables.
- Groups seeking multi-bank capacity with defined controls and transparency.
- Teams prepared to run disciplined reporting, audits, and covenant compliance.
What We Structure In A Syndicated RCF
Syndicated facilities are sold on clarity: what collateral counts, how it is controlled, how cash is swept, and how exceptions are handled. We structure the facility so lenders can underwrite consistently and the business can operate without constant re-approvals.
- Facility architecture: committed revolving line, multi-currency, optional accordion, and maturity and extension logic.
- Borrowing base: eligibility rules for receivables and inventory, haircuts, concentrations, reserves, and availability calculations.
- LC and ancillary sublimits: LC issuance mechanics, reimbursement rules, cash margin logic, and documentation alignment.
- Security and controls: pledges, assignments, account controls, collateral management, and title and custody mapping.
- Cash and proceeds: collection routes, proceeds waterfall, lockbox or controlled accounts, and cure mechanics.
- Covenants and reporting: financial covenants, reporting cadence, audits, borrowing base certificates, and field exam rights.
- Operational exceptions: disputes, demurrage, quality claims, partial shipments, delays, and non-conforming documents.
- Hedging posture: policy alignment where lenders require hedging or risk limits tied to exposures.
Process
| Step | What we do | What you get |
|---|---|---|
| 1. Facility readiness screen | Confirm physical flow, documentation quality, collateral control feasibility, corridor constraints, and lender fit. | A feasibility view and a facility-specific intake list. |
| 2. Structure and borrowing base design | Define facility terms, borrowing base rules, controls, covenants, and reporting and audit mechanics. | A structure memo and a lender-ready facility outline. |
| 3. Lender pack and syndication setup | Prepare a controlled data room and syndication materials aligned to underwriting questions and control points. | A lender package designed to reduce underwriting loops and scope drift. |
| 4. Term sheet process and coordination | Coordinate a structured term sheet process with banks and non-bank lenders suited to the risk profile. | Indicative terms and a clear conditions precedent path to closing. |
| 5. Closing support and operating playbook | Support closing workstreams with counsel and third parties and align reporting and control procedures for go-live. | A closing checklist, reporting templates, and an operating control map. |
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
- Corporate structure, ownership, management, and KYC pack.
- Audited financials, management accounts, and 12 to 24 months of trading performance by commodity and corridor.
- Top buyers and suppliers, terms, performance history, and any dispute history.
- AR aging, inventory reports, storage locations, and logistics and insurance approach.
- Existing facilities, LC usage, limits, security, and bank relationships.
- Target facility size, currencies, LC sublimit needs, and desired tenor.
When It Does Not Fit
- Unverifiable physical flows or missing documentation and acceptance evidence.
- Unclear title or custody, or unwillingness to accept account controls and reporting discipline.
- High dispute rates, unstable counterparties, or corridors that fail bank risk policy.
- Requests framed as investment programs, returns products, or guaranteed approvals.
FAQ
What makes a facility syndication-ready?
Repeatable trade flows, disciplined reporting, collateral that can be controlled, and a borrowing base that is auditable. Lenders want stable procedures, not bespoke exceptions on every draw.
Do syndicated RCFs usually include letters of credit?
Often, yes. Facilities frequently include LC sublimits for documentary letters of credit and performance or payment support where supported by bank policy and the transaction profile.
Is a borrowing base required?
Many commodity trader RCFs are borrowing base facilities because it aligns exposure to eligible receivables and inventory. The exact approach depends on the business model, controls, and lender appetite.
Do you guarantee terms or lender approvals?
No. We provide advisory and arrangement support on a best-efforts basis. Approvals depend on third-party underwriting, KYC and AML, sanctions screening, diligence, and legal documentation.
If you have established commodity flows and want a governed, scalable revolving facility with multiple lenders, share your financials and trade flow summary to receive a scoped proposal.
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.
