Working Capital and LC Solutions for Physical Oil Traders

Notice. FG Capital Advisors is a trade and capital advisory firm with a focus on carbon, commodities, and structured credit. The firm provides financial modelling, analytical support, and sponsor side advice around commodity finance, trade facilities, and related capital structures. FG Capital Advisors is not a bank, lender, credit insurer, broker dealer, or retail investment adviser and does not issue loans, guarantees, or insurance products. Any facility, guarantee, derivative, or investment is provided by 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 the client side, and formal agreements with those regulated entities.

Working Capital and LC Solutions for Physical Oil Traders

You can have a strong supplier. You can have a willing buyer. None of that matters if your payment support and working capital cannot keep pace with the cargo cycle.

FG Capital Advisors arranges bank-recognised trade finance for physical oil and refined products. We support documentary letters of credit, SBLC-backed structures, borrowing base and inventory lines, receivables finance, and prepayment facilities through regulated banks and credit funds. The goal is simple. Lift more volume, protect margin, and stop bottlenecks that kill good trades.

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Oil Trade Finance Outcomes for Physical Traders

This service is built for traders who want measurable outcomes, not generic introductions.

  • Secure supply faster with bank-acceptable payment instruments.
  • Increase cargo frequency without constant cash strain.
  • Improve counterparty confidence on new routes or new suppliers.
  • Reduce capital trapped in deposits and ad hoc security arrangements.
  • Build repeatable funding that scales with monthly throughput.

When the structure is right, your working capital becomes a growth engine rather than a brake.

Letter of Credit Solutions for Crude Oil and Refined Products

Documentary letters of credit remain a core payment tool in large-volume physical oil trading. They are familiar to sellers, controllable for banks, and efficient when the documentary flow is clean.

  • At-sight and usance structures aligned with cargo and discharge cycles.
  • Confirmed LCs where seller requires added bank strength.
  • Structures adapted to common refined products workflows where documentary expectations are strict.

We focus on getting your LC package accepted with minimal friction from the seller’s banking side.

SBLC for Oil Trading as Payment Backstop and Performance Comfort

In some corridors and counterparty relationships, an SBLC is used as a flexible backstop to support payment obligations, extended credit terms, or performance confidence where a full documentary LC is not the best operational fit.

  • Useful for framework supply agreements and repeat liftings.
  • Can support structured working capital alongside LC lines.
  • Requires tight wording and clear call mechanics aligned to the sales contract.

Over-promising on SBLC speed or acceptance is how many trades collapse. We structure to what the beneficiary will actually accept.

Borrowing Base and Inventory Finance for Oil Traders

Scaled physical trading is rarely funded cargo-by-cargo with isolated instruments. Banks prefer repeatable facilities tied to control of goods, documents, and receivables.

  • Revolving working capital lines secured by inventory and receivables.
  • Structures that match storage, terminal, or in-transit control logic.
  • Reporting rhythms aligned to real trading operations.

This is where you can move from opportunistic trading to a stable, fundable platform.

Receivables Finance for Approved Oil Buyers

If you sell to credible end buyers with verifiable payment history, receivables finance can release cash quickly after delivery and reduce the need for constant new equity injections.

  • Monetisation of invoices from approved counterparties.
  • Structures that reduce concentration risk and improve lender comfort.
  • Better cash cycle predictability for multi-cargo months.

Prepayment Facilities for Physical Oil Supply Contracts

Prepayment structures are used when a financier or offtaker advances capital against contracted future deliveries. These can unlock larger supply allocations when sellers require early cash to allocate volume.

  • Contract-linked advance structures with clear delivery and pricing mechanics.
  • Risk allocation aligned to real operational controls.
  • Suitable for traders with stable supply relationships and clean compliance profiles.

Who This Oil Trade Finance Arrangement Is For

This mandate targets real trading businesses with verifiable commercial logic.

  • Physical oil traders with active supply and buyer demand.
  • Firms trading crude or refined products with repeatable monthly flows.
  • US-based companies or US-anchored groups needing bank-grade structures for domestic or cross-border transactions.
  • Management teams who can produce a clean compliance and documentation pack.

If the only asset is a chain of intermediaries with no operational control, this is not your lane.

Bank-Ready Documentation for Oil Trade Finance

The fastest path to approval is a complete, consistent file. We help you package it properly before it reaches credit committees.

  • Corporate KYC set, ownership, and governance documents.
  • Recent financials and trading track record summary.
  • Executed or advanced-stage supply and sales contracts.
  • Product specs, logistics path, and documentary flow.
  • Counterparty evidence and payment history where available.

The cleaner the pack, the less your deal gets delayed by avoidable questions.

Fees for Oil Trade Finance Arrangement

We price this mandate for serious traders who value speed, structure, and credibility. Our fees cover structuring, bank interface management, and execution support on a best-efforts advisory basis. Issuer and lender costs are billed by regulated counterparties.

  • Engagement fee to FG Capital Advisors. USD 35,000 for trade finance mandates up to USD 10,000,000 per month of targeted flow. USD 60,000 for mandates targeting USD 10,000,001 to USD 50,000,000 per month. Larger platforms priced on scope.
  • Success fee to FG Capital Advisors. 1.50% to 2.50% of funded or supported volume under the agreed structure, payable on confirmed facility activation or instrument issuance.
  • Issuer or lender fees. Charged directly by the bank or credit fund, based on credit profile, collateral controls, and tenor.
  • Third-party costs. Legal, collateral perfection, inspections, storage or terminal confirmations, and any required insurance reviews are borne by the client.

Final pricing is confirmed after intake and structure selection.

Closing Procedure for Oil Working Capital and LC Facilities

We run a structured process aimed at converting real trade flow into a fundable, repeatable facility.

  • Step 1. Share your corporate profile, target products, monthly volumes, and current contracts or term sheets.
  • Step 2. We confirm the best fit structure across LC, SBLC, borrowing base, receivables, or prepay logic.
  • Step 3. Engagement fee is paid. We build a bank-ready submission file and risk narrative.
  • Step 4. We approach regulated banks and credit partners aligned to your profile and route.
  • Step 5. Term indications are received, refined, and aligned to documentary and operational controls.
  • Step 6. Client completes KYC, compliance, and any collateral or control agreements required.
  • Step 7. Facility activation or instrument issuance occurs under the regulated counterparty’s documentation. Success fee becomes due on confirmed activation or issuance.

FAQ on Oil Trade Finance, Letters of Credit, and SBLC Structures

Do you guarantee funding or issuance

  • No. Banks and credit funds make independent decisions. Our role is to structure, package, and manage the pathway to improve approval probability and speed.

Can you arrange financing for EN590 and other refined products

  • Yes, where there is credible supply, verified buyers, and a documentary flow that can be supported by regulated counterparties.

What deal sizes are realistic for this mandate

  • This service is designed for scalable flow. If your target activity is below USD 2,000,000 per month, you may be better served by direct bank relationships rather than a structured arrangement mandate.

What collateral is required

  • Requirements vary. Some structures rely on strong balance sheets and controlled trade flows. Others require cash, inventory control, or receivables assignment. We assess this during intake.

Do you work with intermediaries

  • We prioritise direct sellers, direct buyers, and traders with operational control. Long broker chains with no verifiable control are typically not bankable.

Why do banks reject oil trade files

  • The usual reasons are inconsistent documentation, weak counterparty evidence, unclear logistics control, or unrealistic timelines. A disciplined pack fixes most of this.

Can an SBLC replace a documentary LC

  • Sometimes. It depends on the seller’s requirements and the contract structure. We align the instrument to what your counterparty will accept, not what sounds easier.

What do you need to quote accurately

  • Corporate KYC, recent financials, product and route details, target monthly volumes, and executed or advanced-stage supply and sales contracts.

The fastest way to scale a physical oil book is not chasing one-off instruments. It is building a repeatable funding structure that your suppliers trust and your banks can support month after month.

If you have credible supply, verified buyers, and a clear monthly volume target, we will structure the right working capital and LC pathway through regulated counterparties.

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Disclosure. FG Capital Advisors provides financial modelling, analytical, and advisory services. The firm does not originate, offer, or sell securities, loans, deposits, guarantees, or insurance products and does not accept client money. Any instrument, facility type, or strategy referenced on this page is described for professional and commercial context only. Nothing on this page is a recommendation or a solicitation to buy or sell any security, fund interest, token, derivative, or financial product. Any letter of credit, standby letter of credit, guarantee, or working capital facility is provided by appropriately regulated banks or credit counterparties under their own licences, terms, and documentation. All engagements with FG Capital Advisors are subject to internal approval, conflict checks, and applicable KYC and AML checks and sanctions screening where required, as well as the terms of a formal engagement letter.