The petroleum trade is a high-stakes game. Deals move fast, contracts shift hands, and payment security is everything. If you’re sourcing petroleum products—whether it’s crude oil, diesel, jet fuel, or LNG—you know that buyers and sellers rarely shake hands on trust alone. The sheer volume of capital involved makes a letter of credit (LC) more than a preference—it’s a necessity.
At Financely, we specialize in structuring secure trade finance solutions for petroleum transactions. We work with traders, importers, and exporters to unlock capital, reduce risk, and smooth out cash flow disruptions. Whether you’re purchasing a 50,000 MT cargo of AGO or moving aviation fuel across borders, our tailored LC structures help you close deals with confidence.
Petroleum trading isn’t like buying office supplies. It’s a cash-intensive business where missteps can cost millions. Without a proper payment mechanism, traders risk delayed shipments, frozen working capital, or even complete deal breakdowns.
A Letter of Credit (LC) acts as a financial bridge between buyer and seller, ensuring that funds move only when specific conditions are met. It guarantees that a seller gets paid as long as they meet the agreed shipping terms—think along the lines of SGS certification, bill of lading, or certificate of origin. Banks or NBFCs like Financely issue these LCs, reassuring both parties that money won’t change hands unless obligations are fulfilled.
We structure LCs to fit the deal, whether it’s sight LCs, deferred payment LCs, or standby LCs (SLOCs) for petroleum transactions. If your buyer isn’t keen on prepayment but your supplier refuses to ship without cash security, an LC brings both sides to the table.
Petroleum isn’t a one-size-fits-all market. Different fuels, different specifications, different trading risks. The LC structure for a crude oil transaction won’t look the same as one for LNG. Here’s a breakdown of the common petroleum products we help finance:
Each transaction carries its own risks—price volatility, storage costs, regulatory compliance. That’s why our financing structures are tailored, ensuring you don’t get locked into rigid bank requirements that don’t fit your business model.
At Financely, we handle the complexities of petroleum trade finance so you can focus on closing deals. Our solutions bridge cash flow gaps, mitigate counterparty risk, and provide working capital to scale your transactions.
If you’re a trader without the balance sheet strength to issue an LC yourself, we arrange a back-to-back LC structure. We issue an LC to your supplier based on the LC you receive from your buyer. This setup keeps your capital free while ensuring both parties meet their obligations.
Some deals require extra payment security. A standby LC serves as a financial guarantee that the buyer will fulfill payment—even if delays or disputes arise. This structure is commonly used in long-term supply contracts where the seller needs a fallback payment mechanism.
For petroleum shipments, a DLC ensures the seller gets paid only when all agreed documents—such as the **bill of lading (BL), SGS inspection report, and vessel tracking confirmation—**are submitted. This protects both buyer and seller from fraud and shipping discrepancies.
For traders executing frequent shipments, a revolving LC allows multiple transactions under the same credit facility. Instead of negotiating new LCs for every shipment, funds revolve as previous transactions settle, saving time and reducing paperwork.
Credit risk can kill a petroleum deal faster than a market crash. We arrange trade credit insurance to safeguard against buyer default. This gives sellers the confidence to extend payment terms while securing financing at better rates.
For traders scaling operations, a private placement (Reg D) can be an alternative funding route. Instead of relying solely on debt, we structure trade-linked securities backed by receivables. This injects liquidity into your trade cycle without tying up your balance sheet.
Not every trader qualifies for petroleum trade financing. Banks and NBFCs assess risk carefully before issuing an LC or extending credit. Here’s what we look for:
Banks move slow. Compliance roadblocks delay transactions. And traditional lenders rarely understand the fast-moving nature of petroleum trading. At Financely, we work with traders—not against them.
We provide customized trade finance solutions designed for real-world deal flow. Need an LC fast? We move quicker than most traditional lenders. Need flexibility? Our structured solutions adapt to your trade cycle, so you’re never boxed in by one-size-fits-all banking policies.
Petroleum trade finance is complex, but it doesn’t have to be a headache. Whether you need a standby LC, trade credit insurance, or structured trade finance, we structure deals that work for your business.
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.
Submit a RequestAccess non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
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Submit a RequestFinancely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.
Submit a RequestOnce we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.
Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.
Financely advises growth-focused businesses on accessing capital by introducing their opportunities to professional investors. Financely is not a securities broker or dealer. Where appropriate, engagements are coordinated with regulated broker-dealers, investment banks, legal counsel, and other specialists.
Financely does not solicit, offer, or accept orders to buy or sell securities and makes no assurance regarding capital-raising outcomes.
Services are strictly business-to-business. Financely does not provide personal finance, consumer credit, or retail advisory services.
Advisory services are reserved for post-revenue companies that recognize the time and resources required for professional underwriting.
All mandates start with an RFQ. We review submissions, issue a brief Go/No-Go memo, and where bankable, release a Term Sheet that leads to funding. We arrange capital across Senior Secured, Unitranche, Second Lien/Mezzanine, Preferred Equity, and Gap Solutions. We do not process deals by email or chat.
Letters of Credit, Standby LCs, Confirmations, Receivables Finance, and Inventory Lines with control.
Funding arranged for trade flows with instruments sized to your cycle and aligned to delivery and settlement.
Move forward to secure working capital and keep goods moving. Submit the RFQ to start underwriting for funding.
Limited or non-recourse structures for energy and infrastructure with lender-ready materials.
Funding solutions aligned to project cash flows with credible covenants and conditions to reach notice to proceed.
Advance the file to termable status. Submit the RFQ so we can underwrite and secure funding.
Debt and Preferred solutions anchored on cash flow, Quality of Earnings, and clear closing mechanics.
Funding across senior, unitranche, and preferred to match stable cash flows and acquisition timelines.
Get financed on workable terms for closing. Submit the RFQ to start underwriting.
Acquisition, development, bridge, and refinance with lender-ready packs and third-party reports managed.
Funding calibrated to DSCR, leverage, and tenancy with terms designed to close.
Move to a financeable package. Submit the RFQ to initiate underwriting for funding.
KYC and Source of Funds required. Engagements are best-efforts and subject to underwriting. Preference for operating companies with meaningful revenue. See our FAQ and Procedure.
Financely Inc. (“Financely”) provides corporate-finance advice and is wholly owned by Aurora Bay Trust, a trust formed under Bahamian law, together with its authorized affiliates. Depending on deal structure, jurisdiction, and local rules, engagement may be carried out through Financely Group LLC, a non-deposit-taking non-banking financial company; Ashford Capital Advisory LLC; or another related entity. Financely and its affiliates are not registered as securities broker-dealers. When a mandate involves the purchase or sale of securities and a registered intermediary is required, all orders are introduced to and executed by a U.S. broker-dealer registered with the SEC and FINRA, acting as “chaperone” under SEC Rule 15a-6 (17 C.F.R. § 240.15a-6). Nothing here constitutes an offer, solicitation, or recommendation to buy or sell any security. Before proceeding, read our Terms of Service to confirm that engaging Financely Group LLC, Ashford Capital Advisory LLC, or any affiliate aligns with your legal and regulatory requirements.In the United States, we operate as an
exempt foreign private adviser pursuant to the Dodd-Frank Act, subject to applicable exemptions from certain regulatory requirements. Our services and regulatory status may vary based on the location and nature of the transaction. Click
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