Trade Finance Financial Modelling | FG Capital Advisors

Notice. FG Capital Advisors is a corporate finance and trade advisory firm. We build financial models and prepare analytical material. We are not a bank, lender, insurer, broker dealer, or retail investment adviser and do not provide, sell, or intermediate loans, securities, or insurance products. Any transaction that relies on our models is executed with and through 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 Finance Financial Modelling

We build trade finance financial models that show in clear numbers how a facility works over time: limits, turnover, pricing, haircuts, losses, and lender and borrower economics. The goal is simple. Give sponsors, corporates, lenders, and private credit funds a model they can rely on when they size, structure, and negotiate trade transactions.

Our work covers receivables finance, inventory and repo structures, pre export and prepayment deals, LC backed flows, and borrowing base lines that sit behind cross border trade.

Request Trade Finance Modelling Support

Who Uses Our Models

  • Exporters, traders, and industrial corporates preparing to approach banks or private credit funds for trade facilities.
  • Sponsors and management teams preparing data for pre export, borrowing base, or inventory backed deals.
  • Private credit funds that want a consistent model across several trade transactions or platforms.
  • Banks and trade finance desks that need external support to build or refresh internal deal and portfolio models.
  • Family offices and capital providers that want clear numbers on risk, cash flow, and returns before committing to a trade structure.

What We Model In Trade Finance

  • Short term trade loans and revolving credit lines linked to shipment flows and collections.
  • Borrowing base facilities secured against receivables, inventory, or both, including advance rates, reserves, and concentration limits.
  • Inventory repo and tolling structures where title and risk move between borrower, lender, and offtaker at different points.
  • Pre export and prepayment structures tied to off take contracts, including volume and price risk cases.
  • LC backed and confirmed flows where banks cover performance and payment risk for physical trades.
  • Trade related securitization or participation structures where multiple lenders share a common pool of assets.
  • Portfolio models that bring together several trade deals under one funding platform or fund vehicle.

Each model is built around your actual trade flows, margins, and credit parameters rather than generic examples that do not match your business.

Core Deliverables

  • Excel model with clear inputs, calculations, and outputs, structured so credit teams and investors can review it fast.
  • Separate tabs for assumptions, driver tables, ship or contract schedules, and portfolio roll forward.
  • Cash flow views for borrower and lender, including interest, fees, collateral balances, and unrealised or realised losses.
  • Sensitivity cases on prices, volumes, days sales outstanding, defaults, recoveries, haircuts, and FX where relevant.
  • Covenant and trigger tests that match how trade lenders usually monitor transactions, such as minimum equity, borrowing base headroom, and default rate thresholds.
  • A short written note that explains the structure of the model, key assumptions, and where users should focus their review.

We build for transparency. Lenders, risk teams, and auditors can follow the numbers from input to result without digging through opaque formulas.

How Our Modelling Engagements Work

  • 1. Scope And Data. You share a written outline of the structure, your existing term sheets or drafts if available, and the trade data we request. Where needed, we hold a focused scoping call to clarify flows and constraints.
  • 2. First Build. We build the initial model based on your data and standard trade finance practices for comparable structures, with a focus on cash movement, risk exposure, and lender and borrower economics.
  • 3. Review And Refinement. You and your advisers review the first version. We then refine the model, tighten assumptions, add cases, and adjust outputs so the tool matches how you actually run the business and how credit committees look at risk.
  • 4. Final Model And Handover. We deliver the final model, a short explanation note, and a simple change log. Ownership of the file sits with you. We can remain available on a limited or retainer basis to support lender or investor questions around the numbers.

You choose how the model is shared. We can remain in the background or be presented as the external modeller to selected counterparties, always within the limits of our non regulated role.

Typical Use Cases And Outcomes

  • Preparing for lender discussions. Management teams use the model to answer questions on limits, coverage, and downside cases in a way credit teams recognise.
  • Supporting private credit proposals. Sponsors and funds attach the model to investment papers so committees can see how risk and return behave across contracts and scenarios.
  • Stress testing existing lines. Corporates and lenders run the model against current portfolios to see how shocks in price, volume, or defaults would affect covenants and liquidity.
  • Launching a trade finance platform. Managers planning a platform or fund use the model to set target returns, advance rates, and risk limits before they go to market.
  • Standardising internal analysis. Banks and funds commission a common model format so teams stop working off scattered spreadsheets and conflicting logic.

Information We Usually Require

The depth of the model depends on the quality of the information you can provide. As a guide, we usually request:

  • Historic trade data for at least twelve months, including volumes, prices, margins, and counterparties.
  • Receivables and payables ageing tables, plus any loss or recovery history linked to trade flows.
  • Inventory reports where stock finance, repo, or tolling is involved.
  • Draft or executed off take, supply, and finance contracts where they exist, or term sheets that describe the intended structure.
  • Your target facility size, tenor, and pricing range, together with any hard constraints from existing lenders or investors.

Where these items are incomplete, we can still propose an approach, but ranges and caveats will be broader until better data is available.

Engagement Scope And Fees

Fees depend on the complexity of the structure, the number of scenarios required, and whether the model is for a single facility or a wider platform. Work is usually charged on a fixed fee per model with separate scope for later updates or extensions.

  • Single facility or transaction models are priced according to the number of tabs, scenarios, and covenant tests required.
  • Portfolio or platform models, where several deals and counterparties are covered in one framework, sit at a higher range and can include a retainer element for ongoing support.
  • Training sessions for your team on how to use and adapt the model can be added where needed.

All commercial terms are set out in a written mandate or engagement letter before work begins.

If you are planning a trade facility or need a clear model for an existing structure, share a short description of the deal, your sector, and the data you can provide. We will respond with a view on modelling scope and whether a formal engagement with FG Capital Advisors is appropriate.

Submit Your Trade Modelling Request

Disclosure. FG Capital Advisors provides financial modelling, analytical, and advisory services. We do not originate, offer, or sell securities, loans, deposits, or insurance products and do not accept client money. Any lending, investment, insurance, or capital markets transaction referenced in our work is carried out by regulated entities under their own licences, terms, and documentation. 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.