Notice. FG Capital Advisors is a trade and capital advisory firm. We provide financial modelling, analytical support, and sponsor side advice around trade credit facilities, receivables structures, and related working capital solutions. We are not a bank, lender, credit insurer, broker dealer, or retail investment adviser and do not issue loans, guarantees, or insurance products. Any facility, guarantee, or investment is provided by regulated counterparties under their own licences and documentation. All potential transactions are subject to KYC and AML checks, sanctions screening, credit and investment committee decisions, independent legal and tax advice on your side, and formal agreements with those regulated entities.
Trade Credit Financing
Suppliers want shorter terms and secure payment. Buyers need longer terms to sell inventory, manage cash, and keep growth moving. Trade credit financing sits in the middle, turning payables, purchase contracts, and receivables into structured working capital instead of daily firefighting.
FG Capital Advisors helps importers, distributors, manufacturers, and commodity players design trade credit solutions that extend supplier terms, anchor lenders on real trade flows, and reduce pressure on internal cash. Our work focuses on bank-grade structuring and documentation so your payables and receivables support funding rather than blocking it.
Request Trade Credit ReviewWhat Trade Credit Financing Covers
Trade credit financing is about funding the gap between when you pay suppliers and when customers pay you. Instead of relying purely on unsecured overdrafts, facilities are linked to specific trade flows and counterparties.
- Suppliers grant open account terms on shipments, often 30 to 180 days from shipment, delivery, or invoice.
- Buyers use bank lines, private credit, or insurer-backed structures to stretch effective terms without damaging supplier relationships.
- Lenders focus on real orders, invoices, and inventory, not just balance sheet strength, to support working capital at meaningful scale.
The objective is to stabilise your cash conversion cycle around reliable funding instead of negotiating every payment date with suppliers and customers.
Typical Trade Credit Financing Structures
We advise on a range of structures that sit under the broad label of trade credit financing. The right option depends on your trade flows, balance sheet, and supplier and customer profile.
- Supplier trade credit and extended terms where bank or private credit support allows you to lock in longer payment periods with key suppliers in exchange for volume or security.
- Payables finance and reverse factoring where a funder pays approved supplier invoices at or near sight while you settle later under a committed facility.
- Receivables-backed facilities that fund your customer invoices and align repayments with actual cash collections.
- Insured trade credit lines where credit insurance, guarantees, or standby letters of credit give lenders comfort on counterparty risk.
- Inventory and trade cycle finance tied to purchase orders, shipment stages, warehousing, and offtake agreements.
Many clients use a combination of these tools so that supplier terms, receivables, and inventory are funded under one coherent trade credit framework rather than separate ad hoc lines.
Who Uses Trade Credit Financing And Why
Trade credit financing is relevant wherever goods move, margins are thin, and balance sheets are under pressure from growth or volatility.
- Importers and distributors that need to hold inventory ahead of seasonal demand or long delivery times.
- Manufacturers that must pre-buy raw materials and carry work in progress while customers demand terms after delivery.
- Commodity traders that work on open account with trusted counterparties but still want funding linked to specific trades.
- Wholesalers and retailers facing supplier consolidation, tighter credit limits, and more demanding payment terms.
- Sponsor-backed groups that want to free up cash for acquisitions and capex instead of tying it up in payables and stock.
In each case, the aim is the same. Replace informal, unstable supplier credit and overdrafts with committed facilities aligned to real turnover.
How FG Capital Advisors Structures Trade Credit Solutions
Our work starts from your actual trade flows, not generic facility templates. We map how orders move through contracts, documents, and cash, then design trade credit structures that lenders can underwrite and your suppliers and customers can accept.
- Analysing your payables, receivables, and inventory positions by counterparty, geography, and sector to identify funding capacity and concentration risk.
- Designing facility structures around open account terms, Incoterms, payment triggers, and typical dispute patterns in your contracts.
- Defining eligibility criteria and advance rates against invoices or payables so that lenders can model loss scenarios with clarity.
- Integrating credit insurance, guarantees, or standby letters of credit where appropriate to support risk transfer and higher limits.
- Building financial models that show how trade credit lines affect cash, leverage, and covenant headroom under different turnover and default scenarios.
We then support discussions with banks, funds, or specialist trade credit providers through regulated partners, so the facility structure in your term sheets matches the reality of your operations.
Typical Parameters For Trade Credit Facilities
Every trade credit facility is tailored to the borrower, sector, and lender appetite, but some themes recur across most transactions.
- Facilities are usually revolving with tenor linked to the length of your trade cycle rather than a single bullet maturity.
- Pricing reflects both your credit strength and the quality of underlying counterparties, documentation, and any insurance or guarantees in place.
- Advance rates are set by reference to invoice aging, dilution risk, dispute frequency, and historical loss performance.
- Covenants often include minimum equity, leverage limits, and information undertakings tied to receivables, payables, and inventory reporting.
- Security packages can range from unsecured structures with strong counterparties through to pledged receivables, stock, and bank account controls.
Our role is to help you understand what is realistic for your profile and sector before you engage with lenders, so you can focus on viable facility shapes rather than theoretical wish lists.
Information We Usually Need To Review A Trade Credit Opportunity
To provide a useful view on trade credit financing options, we need a clear picture of your trading pattern, counterparties, and current facilities. As a guide, we typically request:
- Latest financial statements and management accounts for the main operating entities in the group.
- Aged payables and receivables reports with breakdown by counterparty, sector, and geography, including top concentrations.
- Details of key suppliers and customers, typical payment terms, and any material disputes or write-offs over the past years.
- Copies of major supply and offtake contracts, including Incoterms, pricing mechanisms, and termination rights.
- Information on existing working capital facilities, trade lines, credit insurance, guarantees, and any security already pledged.
Where information is incomplete, we can still highlight options and likely constraints, but ranges on size, pricing, and structure will remain broad until data quality improves.
Engagement Scope And Fees
Our mandates around trade credit financing are scoped and priced case by case. Fees depend on the scale and complexity of your trade flows, the number of lenders or products in scope, and whether we are advising on a single facility or a wider working capital strategy.
- Fixed fee mandates for review of your current working capital position, trade credit options, and preparation of bank and lender materials.
- Broader mandates for groups that want a consistent trade finance and trade credit blueprint across multiple subsidiaries or jurisdictions, sometimes with an ongoing retainer.
- Where we assist with outreach to banks, funds, or trade credit providers via regulated partners, a success linked component can apply, always documented in a written mandate and subject to applicable rules in relevant jurisdictions.
All commercial terms are set out in a written engagement letter before work begins, including scope, timelines, deliverables, and any success related elements.
If you are facing tight supplier terms, stretched receivables, or rapid growth that strains your working capital, share a short overview of your trade flows, counterparties, and existing facilities.
We will review the information and respond with an initial view on trade credit structures, likely funding channels, and whether a formal mandate with FG Capital Advisors is appropriate for your business.
Submit Your Trade Credit EnquiryDisclosure. FG Capital Advisors provides financial modelling, analytical, and advisory services. We do not originate, offer, or sell securities, loans, deposits, guarantees, or insurance products and do not accept client money. Any trade credit facility, loan, guarantee, or investment product referenced in our work is carried out by regulated entities under their own licences, terms, and documentation. Trade credit and working capital structures involve credit, performance, operational, legal, and market risk. Nothing on this page is a recommendation or a solicitation to enter into any transaction or to buy or sell any financial product. Any engagement with FG Capital Advisors is subject to internal approval, conflict checks, KYC and AML checks and sanctions screening where required, and the terms of a formal mandate or engagement letter.
