Market Dynamics in FMCG Trade

Fast-moving consumer goods operate on tight margins, rapid turnover and just-in-time delivery. Companies often face cash gaps between production, shipping and retail payment, while lenders require clear security interests. Without bespoke trade finance, growth stalls and supply chains can fracture.

Purchase Order Financing

We underwrite advances against confirmed purchase orders to fund raw materials, manufacturing and logistics:

1. Order Verification — Confirm purchase order terms, buyer credit and delivery schedules.
2. Advance Structuring — Provide up to 90% of PO value, with repayment from invoice proceeds or LC disbursement.
3. Collateral & Security — Take security over in-production inventory, receivables and related equipment.
4. Fee & Interest Terms — Financing fees of 1–3% plus cost-of-funds margin, tailored to tenor and risk.

Pre-Export Financing

Pre-export facilities bridge the gap between finished goods and payment:

• Warehouse Receipt Advances — Loans secured by goods under warehouse control agreements.
• Revolving Lines — Seasonal or multi-shipment lines covering manufacturing through export.
• Forfaiting & Factoring — Non-recourse purchase of trade receivables to accelerate cash flow.

Perfecting Lender’s Collateral Interest

Lenders require legally enforceable security interests:

• Inventory Charges — Floating charges or security assignments, registered with local authorities.
• Receivables Pledges — Blanket assignments with direct-flow instructions and escrow control.
• Equipment Liens — UCC-1 or equivalent filings on processing and packing machinery.
• Documentary Control — Retention-of-title clauses and third-party document warehouses to secure goods in transit.

Third-Party Credit Enhancement

Sponsors without full cash cover can involve external partners:

• Parent Company Guarantees — Creditworthy affiliates provide guarantee letters.
• Insurance Wraps — Specialty credit insurers backstop obligations for a premium.
• Export Credit Lines — ECA or development finance guarantees for export transactions.

Engagement & Next Steps

We partner with FMCG producers, distributors and lenders to design facilities that align with operational cycles. Our team manages due diligence, documentation and closing to deliver seamless execution.

Disclaimers & Important Considerations

FG Capital Advisors provides advisory and arrangement services only. All financing structures depend on lender underwriting, regulatory approvals and precise documentation.

Clients should seek independent legal, tax and financial counsel before committing to any funding arrangement.