Notice. This page is informational and general in nature. Any mandate remains subject to KYC and AML checks, sanctions screening, legal review, document compliance, underwriting, and final third-party approvals.
Trade Finance for Importers
Importing goods requires you to commit cash or credit before goods arrive. Suppliers want payment security. Banks want collateral. Your working capital takes the strain in between.
FG Capital Advisors structures import trade finance solutions that bridge that gap, including letters of credit, supplier payment facilities, deferred payment arrangements, and working capital lines. We also advise on the banking relationships needed to make them work at scale.
Get StartedThe Core Problem Importers Face
Most import financing problems are not caused by lack of demand or poor supplier relationships. They are caused by structural gaps in how the trade is financed.
Common Pain Points
- Supplier requires payment at or before shipment, before you have sold the goods.
- Your bank will not issue LCs against the counterparty jurisdiction or commodity type.
- Cash is tied up waiting for the previous shipment to clear before the next order must be placed.
- You have no formal trade facility and every LC is a one-off negotiation with your bank.
- Growing order volumes are outpacing your available credit lines.
- Suppliers will not accept open account terms and insist on a bank instrument.
How Structured Import Finance Solves It
- An LC gives your supplier payment certainty from a bank, not from your balance sheet.
- A revolving LC facility removes per-transaction friction for repeat purchase cycles.
- Usance or deferred-payment terms push the payment obligation out past goods receipt.
- A committed import finance line decouples your purchasing capacity from available cash.
- Non-bank LC providers fill gaps where traditional banks decline the jurisdiction or sector.
- Structured working capital facilities recycle liquidity across the full shipment cycle.
Import Finance Structures We Advise On
| Structure | What It Does | Best Suited For | Key Consideration |
|---|---|---|---|
| Documentary Letter of Credit (LC at Sight) | Bank pays the supplier immediately upon presentation of compliant shipping documents. | First-time supplier relationships or suppliers requiring immediate payment certainty. | Full payment obligation falls due at presentation with no deferred window. |
| Usance / Deferred Payment LC | Bank commits to pay the supplier at a future date, typically 30, 60, 90, or 180 days after compliant documents are presented. | Importers needing time to sell or process goods before the payment obligation falls due. | Deferred period must be agreed with the supplier and issuing bank upfront. |
| Revolving LC Facility | A standing LC line that reinstates after each drawing for repeat purchase cycles without re-application. | Regular importers with recurring orders from the same supplier base. | Requires a committed facility agreement with an issuing bank and is not available on a per-transaction basis. |
| Back-to-Back LC | A second LC issued to the actual supplier, backed by a master LC received from the buyer. | Traders or intermediaries who hold a buyer LC and need to open a separate LC to their own supplier. | Both LCs must be carefully aligned on terms, tenor, and document requirements. |
| Import Loan / Post-Financing | A short-term loan drawn after goods arrive to cover the LC payment obligation, repaid from proceeds of sale. | Importers needing a cash flow bridge between goods arrival and buyer payment. | Requires a bank willing to extend post-financing against the specific trade flow. |
| Supplier Credit with Trade Credit Insurance | Supplier extends credit terms while trade credit insurance protects the importer's receivable position. | Established supplier relationships where the supplier will accept deferred payment without a bank instrument. | Insurance eligibility depends on the buyer credit profile and jurisdiction. |
What We Do For Importers
Structure Advisory
We assess your trade flows, supplier requirements, and cash cycle to recommend the right financing structure, not a generic product.
Banking Relationship Setup
We identify and introduce you to banks and non-bank providers that will issue LCs against your specific commodity, jurisdiction, and counterparty profile.
Facility Negotiation
We advise on collateral, margin, covenants, and pricing and support negotiations through to a committed facility with your chosen provider.
Document Preparation
We build the bank submission package to committee-grade standard, covering the financial model, trade flow summary, risk narrative, and full KYC and AML file.
Non-Bank Alternatives
Where traditional banks decline, we access non-bank LC providers, collateral transfer desks, and alternative trade finance lenders with broader risk appetite.
Execution Support
We support through closing, covering document review, condition precedent tracking, first drawing confirmation, and issue resolution through to a live facility.
Sectors We Cover
- Metals and minerals: copper cathodes, cobalt, lithium, aluminium, steel, and non-ferrous metals.
- Energy and petroleum products: EN590, jet fuel, mazut, LPG, and refined petroleum products.
- Soft commodities: grains, oilseeds, sugar, cocoa, coffee, and FMCG inputs.
- Manufactured goods and industrial equipment: capital goods, machinery, electronics, and consumer products.
- Polymers and petrochemicals: plastic resins, chemical intermediates, and packaging materials.
Process From Intake To Funded Trade
- Trade Flow Assessment Review the import programme, covering goods, origin, destination, volumes, supplier terms, and existing banking relationships.
- Structure Selection Identify the right instrument, whether an LC at sight, usance, revolving facility, or an alternative, based on supplier requirements and cash cycle.
- Provider Matching Shortlist banks and non-bank providers with the right appetite for the commodity, jurisdiction, and transaction size.
- Submission Pack Build Prepare the full credit file, including financials, trade evidence, structure memo, and KYC and AML documentation.
- Term Negotiation Support pricing, margin, collateral, and covenant discussions through to agreed heads of terms or a facility letter.
- Documentation and First Drawing Assist with facility agreement execution, condition precedents, and first LC issuance to confirm the line is operational.
What To Submit For A Review
- Description of the import programme, including goods, origin country, destination, and shipment frequency.
- Supplier details and any existing supplier contracts or framework purchase agreements.
- Current banking relationships and any existing trade or LC facilities in place.
- Corporate financials, including audited accounts and recent management accounts.
- Details of available collateral, including cash margin, receivables, inventory, or fixed assets.
- Target facility size and preferred LC tenor or deferred payment period.
- Full KYC and AML package for the company and all beneficial owners.
Why Import Finance Applications Are Declined
- The issuing bank has no appetite for the supplier's jurisdiction or commodity type.
- The importer has no existing banking relationship and approaches the bank cold.
- Collateral is insufficient to support the requested LC limit.
- Company financials are too thin or too recent to support a credit committee approval.
- The trade flow is not clearly documented, with no contracts, purchase history, or shipment evidence available.
- KYC or beneficial ownership documentation is incomplete or inconsistent.
- The transaction is structured in a way that creates documentary or legal risk for the issuing bank.
Frequently Asked Questions
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Import trade finance refers to the financial instruments and facilities that allow importers to pay suppliers while managing working capital. Common structures include letters of credit, usance LCs, revolving LC facilities, import loans, and supplier credit arrangements. These tools allow importers to commit to supplier payments using bank credit rather than their own cash, bridging the gap between when goods are ordered and when they are sold or processed.
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In most cases, yes. Issuing banks require an existing relationship and an approved credit line before they will issue an LC on your behalf. If you do not have a banking relationship in place, FG Capital Advisors can advise on how to approach and position your company to suitable banks, and can also introduce non-bank LC providers where a traditional bank line is not yet available.
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A sight LC requires the issuing bank to pay the supplier immediately upon presentation of compliant shipping documents. A usance LC defers that payment to a future date, typically 30, 60, 90, or 180 days after presentation. Usance LCs give importers time to receive, process, or sell goods before the payment obligation falls due, which helps manage working capital more effectively.
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A revolving LC is a standing facility that reinstates automatically after each drawing, up to an agreed limit, without requiring a new LC application each time. It is suited to importers with recurring orders from the same suppliers, where the cost and friction of issuing individual LCs for each shipment makes a programme facility more efficient. FG Capital Advisors advises on revolving LC facility setup, bank selection, and the collateral and documentation required to establish the line.
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Banks decline LC requests for several reasons including insufficient collateral, limited appetite for the supplier jurisdiction or commodity, or lack of an existing relationship. Where a traditional bank declines, FG Capital Advisors can introduce non-bank LC providers, collateral transfer specialists, and alternative trade finance lenders that operate with broader risk appetite and can often cover jurisdictions and sectors that mainstream banks avoid.
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Collateral requirements vary by bank, transaction size, and the credit profile of the importer. Some banks require cash margin of 10 to 100 percent of the LC value, while others accept pledged receivables, inventory, property, or cross-collateralisation from other facilities. FG Capital Advisors advises on collateral structuring to optimise working capital efficiency and reduce the cash tied up against each LC or facility.
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We advise on both one-off import transactions and recurring trade programmes. For single transactions, we assist with structure selection, bank or provider introductions, and documentation support. For importers with ongoing trade flows, we focus on setting up a committed facility that reduces friction and cost across future shipment cycles.
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To begin a review, you will need to provide a description of the import programme including goods, countries, and volumes; existing supplier contracts or purchase agreements; corporate financials including audited accounts; details of any available collateral; current banking relationships; and a full KYC and AML package for the company and its beneficial owners. Additional documents may be required depending on the structure and provider.
If you are importing goods and struggling with supplier payment requirements, limited bank lines, or working capital pressure between shipment cycles, submit your mandate for a structured intake review.
Get StartedDisclosure. FG Capital Advisors is not a bank or direct lender. Services are delivered on a best-efforts advisory basis through third-party capital providers and remain subject to underwriting, compliance checks, and definitive legal documentation.
