Notice. Educational and marketing content only. FG Capital Advisors acts as advisor and arranger through regulated partners. We are not a bank or balance sheet lender. Facilities depend on KYC and AML checks, sanctions screening, collateral quality, counterparty approval, and definitive documentation with regulated entities.
Trade And Commodity Finance Structuring Services
We structure trade and commodity finance around real flows, counterparties, and controls. That includes PO financing, pre export and borrowing base facilities, inventory and repo structures, LC backed lines, and receivables and supply chain finance. Our role is to turn a commercial chain of contracts into a facility that banks and funds can underwrite.
Share your trade flows, counterparties, and collateral. We respond with feasible structures, likely funders, and a step by step route from term sheet to drawdown through our regulated partners.
Request A Trade Finance ProposalOn This Page
When Trade And Commodity Finance Structuring Helps
Typical Situations
- Traders and producers with strong counterparties and contracts but limited unsecured credit lines.
- Importers and distributors that need PO financing or LC backed facilities to lift goods without fully cash prefunding.
- Commodity houses that want to release cash from inventory and receivables through structured commodity trade finance, borrowing base, or repo.
- Corporates that want to replace expensive short term loans with self liquidating trade structures anchored in physical flows.
When A Different Route Is Better
- Pure working capital needs with no clear trade flow or collateral trail, where a plain revolving credit facility is more realistic.
- Situations with weak documentation, unclear title to goods, or counterparties that fail basic KYC or credit checks.
- Highly speculative transactions that cannot be tied to identifiable shipments, storage, or offtake.
- Very small ticket sizes that do not justify the legal, control, and monitoring work of structured trade finance.
What FG Capital Advisors Does For Trade And Commodity Finance Clients
Structuring And Documentation
- Map the full trade chain from supplier to end buyer, including incoterms, title transfer points, and payment terms.
- Propose structures across PO finance, pre export, borrowing base, repo, LC backed payables, and receivables finance, matched to your flows and constraints.
- Work with counsel and regulated partners to translate the structure into term sheets, security packages, and workable covenants.
- Identify where assignment of proceeds, control of collection accounts, collateral management, and warehouse controls are required for lender comfort.
Funder Targeting And Execution
- Position the facility for banks, specialist trade funds, and private credit desks that have appetite for your sector and geographies.
- Prepare clear deal materials that speak to credit and risk teams, including flow diagrams, stress cases, and control maps.
- Coordinate with regulated partners on investor and lender outreach, feedback on terms, and negotiation of structure and pricing.
- Support closing by tracking conditions precedent, collateral perfection steps, and operational readiness for first draw.
Products And Structures We Arrange
PO Financing And Pre Shipment Structures
- Finance linked to purchase orders from acceptable buyers, with proceeds locked to repayment.
- Supplier payments supported by LCs, SBLCs, or controlled disbursement mechanics.
- Suitable for traders, importers, and distributors with repeat orders and verifiable margins.
Pre Export And Borrowing Base Facilities
- Revolving facilities secured on receivables, inventory, and sometimes pre sold export contracts.
- Borrowing base calculated from eligible collateral with advance rates, reserves, and regular reporting.
- Used for continuous flows in metals, energy, agri, and other commodity chains.
Inventory And Repo Financing
- Title transfer or pledge based structures over stored commodities, with controlled warehouses or tank farms.
- Repo style arrangements where the funder holds title or beneficial ownership during the financing period.
- Suits commodities with clear quality specs, storage standards, and liquid markets.
LC, SBLC, And Documentary Trade Structures
- Import and export LCs for shipment, including confirmation, UPAS structures, and discounting lines.
- SBLCs and bank guarantees used to secure performance, payment, or advance repayments where justified.
- Combination structures where LCs support PO finance, borrowing base, or repo programs.
Receivables And Supply Chain Finance
- Receivables purchase or discounting programs for approved buyers and defined tenors.
- Payables programs that extend supplier terms while funders pay suppliers earlier under controlled conditions.
- Useful where buyer credit is stronger than seller credit and terms can be standardised.
Hybrid And Bespoke SCTF Structures
- Combinations of borrowing base, repo, and LC backed flows for complex trading books or multi commodity portfolios.
- Tailored collateral and cash control frameworks that match local legal rules and operational reality.
- Often used for larger sponsors and commodity houses that want scalable capital anchored in their trade flows.
Trade And Commodity Finance Execution Process
| Stage 1: Deal Review And Structure Choice | We review your flows, contracts, counterparties, and existing facilities. We then outline which structures are realistic: PO finance, pre export, borrowing base, repo, LC backed lines, or a combination, and how they would sit against your balance sheet. |
| Stage 2: Indicative Terms And Mandate | Based on initial funder feedback from our regulated partners, we frame indicative size, tenor, advance rates, security, and pricing ranges. If there is mutual interest we agree a mandate, work scope, and success fee model. |
| Stage 3: Data Room And Term Sheet | We organise a lender grade data room and draft or refine a detailed term sheet with counsel. This covers collateral pools, borrowing base logic, margining, LC structures, events of default, and reporting. |
| Stage 4: Credit Engagement And Structuring | Through regulated partners, we engage credit teams at target banks and funds, address questions, and adjust structure where justified. We focus on control points, legal risks, and how default scenarios would play out in practice. |
| Stage 5: Documentation And Conditions Precedent | We support negotiation of facility agreements, security documents, account control agreements, collateral management agreements, and any LC or guarantee documentation. Conditions precedent and closing steps are mapped so operations teams can prepare. |
| Stage 6: Closing And First Draw | Once conditions are met and collateral controls are in place, the facility closes and first draw is scheduled. We remain available during ramp up to help refine reporting, collateral tests, and operational procedures. |
Actual timing depends on structure complexity, jurisdictions, collateral type, and how complete your contracts and records are at the start of the process.
Eligibility And Data Room Requirements
Baseline Eligibility Profile
- Clear trade flows with named suppliers and buyers, defined incoterms, and written contracts.
- Goods that can be stored, traced, and valued with recognised quality and pricing benchmarks.
- Counterparties and jurisdictions that pass sanctions, KYC, and basic credit checks.
- Willingness to give funders real control over cash, collateral, or both, in line with agreed structures.
Core Data Room Items
- Corporate documents, ownership charts, and audited or reviewed financial statements.
- Sample contracts for suppliers and buyers, including terms, quality specs, and dispute rules.
- Inventory and receivables ageing, stock reports, and warehouse or tank documentation where relevant.
- Existing facility agreements, security documents, and any intercreditor or subordination arrangements.
Risk, Controls, And Security Package
Control Points
- Assignment of receivables and notice to buyers where required by funders.
- Account control arrangements so collections flow through monitored accounts.
- Collateral management processes at warehouses, tank farms, or storage sites, including inspection rights.
- Trade credit insurance or political risk cover where justified and available.
Security And Covenants
- Security over inventory, receivables, and in some cases shares in SPVs or project vehicles.
- Borrowing base tests, concentration limits, and eligibility criteria for collateral.
- Financial covenants where appropriate, linked to leverage, liquidity, or interest cover.
- Reporting covenants on stock, receivables, LC exposure, and key contract changes.
Our structuring goal is a facility that funds real flows while giving lenders a clear route to repayment and collateral if something goes wrong.
If you have repeat trade flows, defined counterparties, and assets that can secure a facility, send us your trade summary, contracts, and existing financing pack. We will respond with realistic structures, likely funding channels, and a proposed mandate to take the deal to market with our regulated partners.
Request A Trade Finance ProposalFAQ
Do I need a borrowing base or can I just request a straight trade loan?
Many funders prefer a borrowing base or clearly defined collateral pool rather than an unsecured trade loan. Where flows are regular and assets can be monitored, a borrowing base or repo gives more headroom and usually better terms than a simple uncollateralised line.
Can PO financing and LC structures sit alongside my existing bank lines?
Often yes, provided security, intercreditor terms, and cash controls are agreed across lenders. This is part of the structuring work and needs legal input so there are no conflicts or silent second ranking positions that credit teams will reject.
Is this only for large international commodity traders?
No. Mid sized traders, producers, and distributors can also access structured commodity trade finance if flows, contracts, and collateral are strong enough. Ticket size, sector, and documentation quality drive funder appetite more than headcount alone.
How does FG Capital Advisors get paid on trade finance mandates?
Our work is typically covered by a mandate fee for structuring and preparation plus a success based fee on funded facilities. Exact terms depend on deal size, complexity, and the scope agreed with you and our regulated partners.
Can you help if our existing bank pulled back from trade finance?
Possibly. We review why lines were reduced, how your controls and results look, and whether alternative banks or trade funds would view the risk differently. Where the issues are structural or compliance driven, we are direct about that before any mandate is signed.
Disclosures. FG Capital Advisors provides advisory and arranging services through regulated partners. Nothing on this page constitutes an offer of financing or a solicitation to invest. Any engagement is subject to internal approval, conflict checks, KYC and AML and sanctions screening, independent legal and tax advice on your side, and the terms of a formal mandate, term sheet, and final facility documentation.
