Disclaimer: This article is for informational purposes only. FG Capital Advisors does not originate loans. All financing solutions require lender approval and due diligence.
Apply for Trade Finance Loans & Commodity Trade Finance Solutions
Unlock working capital through tailored trade finance loans, purchase order financing, warehouse receipt financing and private asset-backed finance structures. FG Capital Advisors helps you access up to 90% advance rates on your trade assets.
Introduction
When you need to bridge the cash gap in commodity transactions, trade finance loans and specialized commodity trade finance solutions are essential. Whether you’re looking to apply for trade finance loans , negotiate competitive purchase order financing rates or set up warehouse receipt financing applications , this guide covers the options, structures and step-by-step workflows to secure capital swiftly and cost-effectively.
1. Trade Finance Loans: The Foundation
Trade finance loans provide term funding against confirmed purchase orders or sales contracts. Lenders advance 70–85% of the contract value, with tenors from 30 to 180 days. Key benefits include:
- Rapid approval for standard collateral profiles
- Interest at SOFR + 250–400 bps
- Flexible repayment tied to receivable collection
To apply for trade finance loans , prepare a credit package with audited financials, purchase order confirmations and supplier acknowledgments.
2. Purchase Order Financing: Immediate PO Liquidity
Purchase order financing bridges the gap between order placement and delivery. Typical features:
- Advance up to 80% of PO value
- Approval in 5–10 days with minimal documentation
- Fees: 1% arrangement plus drawdown interest
This solution is ideal for businesses seeking a fast, straightforward way to fund large orders without diluting equity or adding debt to core lines.
3. Warehouse Receipt Financing: Turn Inventory into Cash
Warehouse receipt financing lets you pledge physical goods—metals, grains, oil—in approved facilities. You can borrow 75–85% of inventory value. Key data:
- Global warehouse capacity: over 2.5 billion metric tonnes under finance
- Average spread: SOFR + 200–350 bps
- Funding turnaround: 3–7 days after receipt validation
To initiate a warehouse receipt financing application , secure certified warehouse receipts and proof of insurance naming the lender.
4. Private Asset-Backed Finance: High Advance, Off-Balance-Sheet
Private asset-backed finance(ABS) structures pool POs, receipts or receivables in an SPV. The SPV issues notes to investors, offering:
- Advance rates up to 90% of collateral value
- Off-balance-sheet treatment with true sale documentation
- Investor base: credit funds, family offices seeking 5–7% returns
ABS is a robust commodity trade finance solution when traditional bank lines are maxed out.
5. Comparing Your Options
| Solution | Advance Rate | Tenor | Typical Use |
|---|---|---|---|
| Trade Finance Loans | 70–85% | 30–180 days | Invoice-backed funding |
| Purchase Order Financing | Up to 80% | 7–10 days | Pre-shipment funding |
| Warehouse Receipt Financing | 75–85% | 30–90 days | Inventory liquidity |
| Private ABS Finance | 80–90% | 90–180 days | SPV-backed funding |
Conclusion
Choosing the right commodity trade finance solutions —from trade finance loans and purchase order financing to warehouse receipt lending and private asset-backed finance—ensures you maintain cash flow, manage risk and scale confidently. FG Capital Advisors designs and executes the optimal blend for your business. Contact us to explore tailored financing structures that unlock your working capital.
FG Capital Advisors does not provide loans directly; all financing is subject to third-party lender approval and credit review.
