Notice. This page is informational and general in nature. Any transaction remains subject to counterparty acceptability, KYC and AML, sanctions screening, diligence, contract documentation, security perfection, cargo insurance, and third-party approvals. Obtain independent legal advice for contracts, remedies, and enforceability.
Trade Finance Bridge Loans
Bridge loans solve short, real cash gaps inside trade flows. Not long-term growth capital. Not unsecured working capital. The mandate is simple: structure a short-tenor facility that matches the cash-conversion cycle and sits cleanly inside bank-grade controls.
FG Capital Advisors supports structuring, lender pack preparation, and placement coordination with suitable third-party capital providers. All transactions remain subject to counterparty acceptability, compliance clearance, and definitive documentation.
Request a QuoteWhere Bridge Loans Fit
Bridge facilities are used when a trade is executable but timing creates a funding gap. Common patterns include:
- Pre-shipment working capital secured against contracts and a defined control stack, often coordinated alongside Trade Finance Structuring and Fundraising.
- In-transit funding where inventory control and documentary timing need to align with bank workflows, supported by a properly drafted Collateral Management Agreement.
- Post-shipment or receivables gaps where collections are predictable but delayed, often structured as a borrowing base with disciplined eligibility.
- LC proceeds or documentary settlement gaps where a compliant structure is paired with bank acceptability, including cases tied to Letter of Credit Monetization.
If you are comparing options, see Trade Finance vs Traditional Financing for how transaction control differs from balance-sheet lending.
Indicative Facility Types
| Facility Type | What It Bridges | Typical Security And Controls |
|---|---|---|
| Pre-Shipment Bridge | Supplier deposits, production, packing, and logistics costs before goods move | Contract assignment, purchase controls, inspection triggers, controlled disbursement, step-in rights where feasible |
| In-Transit Bridge | Funding gap while cargo is on the water or in bonded storage pending final documents | Title control, pledged inventory, collateral manager or warehouse controls, insured transit, documentary sequencing |
| Post-Shipment Bridge | Timing gap between shipment and buyer payment or receivable maturity | Receivables assignment, collection account control, buyer acceptance checks, eligibility and reserve mechanics |
| LC Proceeds Bridge | Funding against expected LC settlement where timing is defined and documents are controlled | Assignment of proceeds, document compliance discipline, acceptable issuing or confirming bank, discrepancy rules |
| Borrowing Base Bridge | Repeatable bridge for a trade book where shipments roll continuously | Borrowing base, eligibility schedules, reserves, reporting, audits, and default triggers set out in a formal facility agreement |
For indicative ranges and terms that lenders typically focus on, see Trade Finance Term Sheet.
Control Stack Matters More Than The Label
Bridge loans fail when the controls are vague. The facility name does not save the trade. The credit survives on clear control points, clean documentation, and a monitoring plan that a lender can actually run.
Key building blocks often include:
- A facility agreement that sets eligibility, reserves, reporting, and default triggers. See Guide to Trade Finance Facility Agreements.
- A collateral management or warehouse control arrangement where inventory is part of the security package. See Collateral Management Agreements in Trade Finance.
- Collections control through assigned receivables, controlled bank accounts, and defined cure mechanics for disputes and discrepancies.
- Insurance alignment (cargo and, where relevant, credit risk mitigants) with named beneficiaries and documentary consistency.
Sponsors that want full-scope structuring support can also review Trade Finance Structuring and Private Placement Debt Advisory for broader lender pack and placement workflows.
Process And Timeline
Bridge facilities move fast only when the file is clean. A typical path looks like this:
| Step | What Happens | Output |
|---|---|---|
| 1) Triage | Map the trade flow, cash gap, counterparties, jurisdictions, and control points | Feasibility view and initial structure recommendation |
| 2) Structuring | Define facility type, security, controls, and documentary sequencing aligned to lender workflows | Draft key terms and control stack outline |
| 3) Lender Pack | Prepare a lender-grade pack and controlled data room based on underwriting questions | Underwriting memo, sources and uses, controls summary, and monitoring plan |
| 4) Placement | Coordinate targeted outreach and term sheet negotiation with suitable third-party capital providers | Indicative terms and conditions precedent path |
| 5) Closing | Coordinate diligence, documentation, security perfection, and operational readiness | Executed facility documents and funding readiness |
For the broader service scope around underwriting preparation and execution management, see Trade Finance Capital Introduction Services and Trade Finance Consulting.
What To Submit For A Quote
The fastest way to get meaningful indicative terms is to submit a complete, consistent file. At minimum:
- Trade summary: product, route, Incoterms, payment method, expected cycle length, and the exact cash gap to bridge.
- Contracts: purchase and sale contracts, amendments, and any side letters that affect delivery, pricing, or remedies.
- Counterparties: buyer and supplier details, ownership, performance history, and any existing facilities or liens.
- Documentary list: shipping documents required, inspection, certificates, and discrepancy rules.
- Collateral and controls: inventory location, warehouse or collateral manager options, account control structure.
- Compliance: KYC and AML pack and sanctions-relevant touchpoints for screening.
If your mandate is specifically a commodity shipment gap, see Gap Funding for Physical Commodity Trades.
FAQ
Do you provide direct lending?
No. FG Capital Advisors acts on a best-efforts basis as an advisor. Any lending, insurance, custody, brokerage, or regulated activity is executed by the relevant third party under its own approvals and documentation.
What sizes and tenors are possible?
Bridge loans are short-tenor by design and sized to the verified cash gap inside a defined trade flow. Final terms depend on counterparty strength, collateral, controls, jurisdiction, and provider appetite. Indicative ranges are described on Trade Finance Term Sheet.
What collateral is required?
Collateral varies by structure. Common packages include inventory, receivables, assignment of contract rights, and controlled accounts. The lender focus is control and enforceability, not slogans.
Can bridge funding work without a collateral manager?
Sometimes, but only if an alternative control stack is acceptable to the capital provider. Where inventory is pledged, a properly drafted collateral management arrangement is frequently the cleanest path. See Collateral Management Agreements in Trade Finance.
How fast can a bridge facility close?
Timing depends on file quality and counterparty responsiveness. Clean contracts, clear controls, and a complete KYC pack reduce cycles. Gaps and inconsistencies create delays.
What is the first step?
Submit a request with your trade summary and counterparty details via Request a Quote. If the file is executable, we revert with next steps and the expected control requirements.
If you have a real trade flow and a defined cash gap, submit the file. We will revert with a bridge structure that matches the cycle and a lender-ready path to closing.
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 and does not accept client money. Any support is provided on a best-efforts basis and remains subject to third-party approvals, diligence, compliance checks, and documentation.
