Important Disclosure. For corporates and professional counterparties. Not a public offer. This page is informational and does not constitute legal, tax, or financial advice. All facilities are subject to diligence, KYC and AML, sanctions screening, conflicts checks, counterparty acceptability, definitive documentation, collateral control feasibility, and third-party capital provider approvals.
Trade Finance Procedure and Timelines
This guide sets out the standard procedure used to arrange trade finance facilities, including Letters of Credit, Revolving Credit Facilities, and Warehouse Facilities. It explains what to expect at each stage, what documentation is required, and how long each stage typically takes.
Trade finance is executed through structured workflows built around contracts, documentary sequencing, collateral control, and enforceable cash flow mechanics. Timelines are primarily driven by documentation readiness, compliance screening, and the feasibility of controls.
Related internal guides: Trade Finance vs Traditional Financing , Trade Finance Structuring and Fundraising , Structured Trade and Commodity Finance Services , Commodity Borrowing Base Facility Guide , and Collateral Management Agreements in Trade Finance.
Who Does What
- Client: provides complete documentation and operational access; implements agreed controls.
- FG Capital Advisors: structures the request, prepares the lender-ready pack, manages outreach and Q&A, and coordinates diligence workflows.
- Capital providers: underwrite risk, approve terms, issue instruments or fund facilities, and manage ongoing monitoring.
If your contract requires LC or SBLC support, see SBLC and LC Issuance Advisory With Margin Solutions.
What Capital Providers Underwrite
- Commercial rationale and documentability of the transaction or asset pool.
- Repayment path and the enforceability of cash sweep mechanics.
- Counterparty strength, jurisdiction profile, and compliance clearance.
- Collateral control feasibility: warehouse/CMA/BL control, assigned receivables, controlled accounts.
- Reporting capability and monitoring discipline post-closing.
Typical End-To-End Timelines
The ranges below assume a cooperative workflow and a complete document set. Multi-jurisdiction legal work, new onboarding, and complex controls can extend timelines.
| Facility Type | Typical Range | Primary Drivers |
|---|---|---|
| Letter of Credit under an existing line | 1 to 3 weeks | Existing onboarding, simple documentary set, clear contract terms, clean counterparties |
| New Letter of Credit line or structured trade line | 3 to 8+ weeks | New onboarding, margin/collateral support, controls setup, compliance screening |
| Revolving Credit Facility | 6 to 12+ weeks | Financial diligence, covenant negotiation, security package, account controls, legal workflow |
| Warehouse Facility | 8 to 16+ weeks | Data quality, eligibility rules, audits and testing, legal structure, reporting cadence |
If your request is commodity-led, refer to Structured Trade and Commodity Finance Services and the Commodity Borrowing Base Facility Guide.
End-To-End Procedure
The stages below reflect the standard lender workflow. The exact sequencing can vary by provider, but the logic is consistent: screening, packaging, indicative terms, underwriting, documentation, and go-live.
Phase 1: Intake and Facility Design
Objective: confirm the correct facility type, requested size, tenor, currency, repayment mechanics, and controls stack.
Client provides: facility objective, trade or portfolio summary, jurisdictions, counterparties, target size, and timeline requirements.
FG Capital Advisors delivers: a structured checklist and proposed facility architecture.
Typical timeline: 1 to 3 business days.
Phase 2: KYC, AML, and Data Room Assembly
Objective: create a complete lender-grade file suitable for screening and underwriting.
Core documents:
- Corporate documents, registers, signatory authority, group structure chart where relevant.
- UBO disclosure, ownership chart, IDs, proof of address.
- Financial statements and latest management accounts.
- Bank statements (commonly 3 to 6 months), debt schedule, and any existing liens.
Typical timeline: 3 to 7 business days, driven by document readiness.
Phase 3: Lender-Ready Pack and Submission Strategy
Objective: prepare a package that supports rapid underwriting and reduces repeated Q&A.
What is prepared: lender memo, sources and uses, repayment path, collateral and controls summary, and supporting exhibits.
Deliverables: lender-ready pack and lender fit list aligned to facility type and risk profile.
Typical timeline: 5 to 10 business days after receipt of complete documents.
Phase 4: Outreach, Q&A, and Indicative Terms
Objective: obtain written indicative terms, a draft term sheet, or written declines where available.
What happens: submissions to selected providers, structured Q&A, and refinement of advance rates, reserves, covenants, reporting cadence, and controls.
Deliverables: indicative terms and a comparison matrix summarising pricing, fees, controls, and conditions.
Typical timeline: LC 1 to 3 weeks, RCF 2 to 5 weeks, Warehouse Facility 3 to 6 weeks.
Phase 5: Underwriting and Diligence
Objective: progress from indicative terms to credit approval subject to documents and conditions precedent.
Typical diligence scope: KYC and sanctions screening, financial analysis, counterparty review, collateral verification, operational review, and insurance review.
Deliverables: credit approval subject to documents, plus a conditions precedent tracker.
Typical timeline: RCF 3 to 6 weeks, Warehouse Facility 4 to 8 weeks, LC varies by screening scope.
Phase 6: Documentation, Controls, and Closing
Objective: execute legal documents, implement controls, and satisfy conditions precedent.
What happens: negotiation of facility agreement and security package, account control agreements, reporting templates, insurance endorsements, filings, and final closing checklist clearance.
Deliverables: executed documents and closing confirmation once CPs are satisfied.
Typical timeline: LC 1 to 3 weeks, RCF 2 to 5 weeks, Warehouse Facility 3 to 6 weeks.
Phase 7: Go-Live and First Utilisation
Objective: activate the facility and complete the first issuance or draw.
What happens: accounts go live with the agreed controls, first borrowing base certificate is delivered where applicable, and the first transaction is executed.
Deliverables: first LC issuance, first drawdown, or first funding event, plus an operating calendar for reporting and monitoring.
Typical timeline: 3 to 10 business days after conditions precedent are complete.
Product-Specific Procedures
Letter of Credit
Primary use: documentary payment assurance to suppliers, typically cross-border.
Typical inputs:
- Purchase contract or pro forma invoice with Incoterms, shipment windows, and payment terms.
- Beneficiary and beneficiary bank coordinates.
- Document set requirements: BL, inspection certificate, certificate of origin, insurance where required.
Documentary discipline matters. For LC-linked workstreams, refer to SBLC and LC Issuance Advisory With Margin Solutions.
Revolving Credit Facility
Primary use: recurring working capital for operating businesses.
Typical inputs:
- Forecast with assumptions and a downside case.
- Aged receivables and payables; concentration reporting.
- Major customer and supplier contract summaries.
Many RCFs are borrowing base structures. See Commodity Borrowing Base Facility Guide.
Warehouse Facility
Primary use: funding a defined pool of assets under eligibility rules and borrowing base reporting.
Typical inputs:
- Portfolio tape or asset list plus historical performance metrics.
- Stratifications and concentration limits.
- Servicing process, dispute handling, and reporting capability confirmation.
Collateral control and monitoring are central. See Collateral Management Agreements in Trade Finance.
What “Approval” Means in Practice
“Approval” is often used informally. The stages below clarify what is and is not executable at each point.
| Stage | Meaning | Planning Guidance |
|---|---|---|
| Indicative Interest | Initial view that the request may be workable | Useful for direction; not a commitment |
| Indicative Terms | Written structure and economics proposed, subject to diligence | Basis for diligence and term comparison |
| Credit Approved Subject to Documents | Underwriting complete; legal documentation and CPs remain | High confidence if CPs are achievable |
| Closed and Live | Documents executed; controls implemented; security perfected | Facility is active and ready for utilisation |
| First Utilisation | First issuance or draw completed | Executed outcome |
What to Prepare to Move Quickly
Core Pack
- Corporate documents, registers, and signatory authority.
- Ownership chart and UBO documentation (IDs and proof of address).
- Financial statements and latest management accounts.
- Bank statements (3 to 6 months) and current debt schedule.
Facility-Specific Pack
- LC: contract/pro forma invoice, Incoterms, documentary requirements, logistics plan.
- RCF: forecast, AR/AP agings, concentration reporting, major contracts.
- Warehouse Facility: portfolio tape, stratifications, performance history, servicing and reporting procedures.
Request a Quote
Submit your contract or flow summary, desired facility size, timeline, jurisdictions, and your KYC pack. We will revert with underwriting requirements, a proposed structure, and a timeline for a lender-ready file.
Request a QuoteDisclaimer. FG Capital Advisors provides services that may include advisory support, structuring, documentation coordination, and execution management through approved partners. We are not a bank and do not lend, insure, or issue guarantees. All work is best-efforts and subject to diligence, KYC and AML, sanctions screening, conflicts checks, definitive documentation, collateral onboarding, and third-party approvals.
