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Financely arranges trade finance for oil and gas companies: pre-export finance, borrowing base facilities, crude oil LCs, commodity revolvers, and offtake-backed lending. Speak to a specialist.
Financely · Trade & Commodity Finance
Oil and gas transactions carry a set of financing challenges that generic trade finance lenders are not equipped to handle: volatile commodity prices, title transfer risk at sea, long payment cycles, and counterparty credit profiles that require deep sector knowledge. Financely arranges structured trade finance specifically for oil and gas producers, traders, and downstream operators. From pre-export facilities secured against confirmed offtake to borrowing base revolvers backed by proven reserves, we connect your business to the lenders who understand how commodity finance works. Submit your deal to speak with a specialist.
Oil and gas trade finance is a category of structured lending that funds the purchase, transport, storage, and sale of hydrocarbon commodities. Unlike conventional working capital loans, commodity trade finance is self-liquidating: the loan is repaid directly from the proceeds of the underlying cargo or production sale. The lender's security is therefore tied not to the borrower's balance sheet alone, but to the commodity itself, the offtake contract, the shipping documents, and the receivable due from the buyer.
This self-liquidating structure is what makes commodity trade finance well-suited to oil and gas: the transaction itself generates the cash to repay the facility, provided the price, title, and payment terms are properly managed. The complexity lies in building a lending structure that accounts for price volatility, jurisdictional risk, title transfer at the loading port, and the creditworthiness of the end buyer.
Financely works with oil and gas producers, physical commodity traders, and downstream buyers who need access to financing structures that major commodity banks understand. We do not lend directly; we act as arranger, connecting your transaction to the right lender or syndicate and structuring the deal to maximise the probability of approval. For broader commodity finance context, see our structured commodity finance service.
Note: Financely acts as arranger only and does not provide credit or capital directly. All facilities are subject to lender credit approval, jurisdictional compliance review, and commodity price assessment at the time of underwriting.
The appropriate instrument depends on where your business sits in the commodity chain, what security you can offer, and the tenor of the underlying transaction. Below are the primary structures Financely arranges for oil and gas clients.
A pre-export facility provides an advance to a producer before the cargo has shipped, secured against a confirmed offtake agreement with a creditworthy buyer. The lender receives repayment directly from the buyer's payment under the sales contract. PXF is commonly used by upstream producers in West Africa, the Gulf, Central Asia, and Latin America who have long-term supply contracts in place but require liquidity ahead of shipment. Tenors typically run from 6 months to 5 years, with advance rates of 70 to 85 percent of the forward contract value.
A borrowing base facility is a revolving credit line where availability varies with the value of the borrower's eligible assets: typically proved developed producing reserves, inventory in storage, or confirmed receivables from cargo sales. The lender conducts a periodic borrowing base determination that sets maximum availability. These facilities are widely used by independent oil companies and traders who need flexible working capital that scales with their asset base. Advance rates of 60 to 85 percent of the net present value of reserves are typical for investment-grade or near-investment-grade borrowers.
A documentary letter of credit (LC) is the most widely used payment instrument in physical oil trading. The issuing bank makes an irrevocable payment undertaking to the seller on behalf of the buyer, conditional on presentation of compliant shipping documents: typically a bill of lading, certificate of quality, certificate of quantity, and commercial invoice. LCs for crude oil are typically issued at sight or on usance terms of 30 to 90 days. Financely assists buyers who require LC issuance capacity and arranges confirmed LCs where the seller's geography requires a confirming bank in a stronger jurisdiction. For more on LC structuring, see our SBLC service page.
Inventory finance provides a short-term facility secured against physical commodity held in storage: either onshore in a tank terminal or offshore in a floating storage vessel. The lender takes control of the commodity through a collateral management agreement with an independent collateral manager who monitors inventory levels, issues warehouse receipts, and manages title. This structure is used by traders and distributors who need to finance large volumes in transit between purchase and onward sale. Tenors are typically 60 to 180 days, and the facility revolves as inventory turns over.
For producers or midstream companies with long-term supply agreements in place, an offtake-backed term loan uses the contracted revenue stream as the primary repayment source and security package. The lender underwrites the creditworthiness of the offtaker as much as the borrower, and the loan is typically structured with cash flow waterfall accounts that direct payments from the offtaker to the lender's debt service account before residual proceeds reach the borrower. Tenors of 3 to 7 years are achievable where the offtake contract length supports it.
Oil and gas supply contracts frequently require the seller or buyer to post a standby letter of credit (SBLC) or performance bond as a form of financial guarantee. An SBLC provides the beneficiary with a right to draw against the issuing bank if the applicant fails to perform its contractual obligations. Financely arranges SBLCs through commodity and trade finance banks for clients who need to provide payment security to counterparties while preserving their own credit lines. For information on broader SBLC structuring, see our SBLC service page.
Oil and gas trade finance is a specialist area. The lenders who provide these facilities require specific knowledge of commodity markets, shipping procedures, and the legal frameworks governing title transfer and cargo documentation. Financely works with the following types of clients.
| Client Type | Typical Financing Need | Preferred Instrument |
|---|---|---|
| Upstream Producer | Advance against production ahead of shipment, working capital for drilling operations | Pre-export finance, reserve-based lending |
| Physical Commodity Trader | LC issuance for cargo purchases, revolving working capital to fund the buy-sell cycle | Documentary LC, borrowing base RCF |
| Independent Oil Company | Reserve-backed revolving credit, bridge finance between field development and production cashflow | Borrowing base facility, reserve-based lending |
| Downstream Distributor | Finance for refined product purchases, storage, and onward distribution across multiple markets | Inventory finance, revolving LC facility |
| LNG / LPG Operator | Long-tenor project debt secured by LNG sale and purchase agreements, shipping finance | Offtake-backed term debt, SBLC |
| NOC-Linked Entity | Structured pre-export facilities where the offtaker is a national oil company or sovereign buyer | Pre-export finance, sovereign-backed LC |
Understanding the risk landscape is essential before approaching lenders. Financely prepares clients for the questions underwriters will ask and structures facilities in a way that addresses these risks directly.
Price risk: Commodity price falls between the advance date and repayment date can erode the value of collateral below the outstanding loan balance. Lenders manage this through conservative advance rates, price trigger covenants, margin call provisions, and hedging requirements. Borrowers should expect to provide evidence of a hedging strategy or accept a lower advance rate.
Title and documentation risk: In oil trading, the bill of lading is the document of title. Loss, fraud, or discrepancies in shipping documents can prevent a lender from enforcing its security over the cargo. Documentary LC structures and independent collateral management agreements are designed to control this risk.
Counterparty and offtaker risk: Repayment of a pre-export facility or offtake-backed loan depends on the buyer paying on time and in full. Lenders scrutinise the financial standing, payment history, and jurisdiction of the offtaker as carefully as the borrower itself. A weak or unrated offtaker significantly constrains available advance rates and tenor.
Jurisdiction and sanctions risk: Oil and gas transactions often cross multiple jurisdictions. Lenders are required to conduct OFAC, UN, EU, and UK sanctions screening on all counterparties, flag states, cargo vessels, and receiving ports. Financely will not arrange transactions involving sanctioned entities, vessels, or jurisdictions regardless of structure.
The terms below are indicative and based on transactions Financely has arranged or observed in the market. Actual terms depend on borrower credit quality, commodity type, jurisdiction, offtaker strength, and prevailing market conditions.
| Instrument | Typical Tenor | Advance Rate | Indicative Rate |
|---|---|---|---|
| Pre-Export Finance | 6 months to 5 years | 70–85% of contract value | SOFR + 4.5–8.0% |
| Borrowing Base RCF | 12–36 months (revolving) | 60–85% of PDP NPV | SOFR + 3.5–6.5% |
| Documentary LC | Sight to 180 days usance | Up to 100% of cargo value | 0.5–1.5% per annum fee |
| Inventory Finance | 60–180 days | 70–80% of commodity value | SOFR + 5.0–8.5% |
| Offtake-Backed Term Loan | 3–7 years | Case by case (DSCR driven) | SOFR + 5.5–9.0% |
| SBLC / Performance Bond | 12 months (renewable) | Face value of instrument | 1.0–2.5% per annum fee |
All rates are indicative. Financely does not guarantee these terms are available for any specific transaction. Lender appetite for oil and gas transactions varies significantly with commodity price cycles, geopolitical risk, and institutional credit policy.
Our process is designed to get qualified transactions in front of the right lenders quickly, with a credit presentation that addresses underwriter questions before they are asked.
| Stage | What Happens |
|---|---|
| 1. Deal Submission | You submit a deal summary via our client portal. We review the commodity, structure, counterparty profile, and jurisdiction within one business day and confirm whether we can proceed. |
| 2. Structure Advisory | We recommend the appropriate instrument and structure based on your position in the commodity chain, the security available, and the lender market. This includes advance rate guidance, hedging expectations, and documentation requirements. |
| 3. Lender Identification | We identify 3 to 5 lenders from our network whose appetite, commodity focus, and jurisdiction coverage match your transaction. We do not mass-distribute deal teasers. |
| 4. Credit Memo Preparation | We prepare a borrower and transaction credit memorandum in the format commodity lenders expect: commodity description, supply chain, offtaker analysis, security structure, repayment mechanism, and risk mitigants. |
| 5. Term Sheet and Negotiation | We manage the term sheet process, including pricing, covenants, reporting obligations, and any hedging or insurance requirements. We recommend the best proposal and help you understand the trade-offs. |
| 6. Close and Drawdown | We support legal documentation, conditions precedent, and collateral management arrangements through to first drawdown. Our fee is payable on completion only. |
Before approaching a commodity lender, a borrower should be prepared to address the following. Financely works with clients to strengthen each of these areas ahead of any lender introduction.
Our minimum for oil and gas trade finance is $5 million. Below this threshold, the arrangement cost relative to transaction value makes the process uneconomical for most lenders. For smaller transactions, short-term commodity finance through a domestic bank or specialist trade finance fund may be more appropriate.
No. Financely will not arrange transactions that involve parties, vessels, ports, or jurisdictions subject to OFAC, UN, EU, or UK sanctions programmes. This includes Iran, Russia, North Korea, Syria, Cuba, and Venezuela under current regimes, as well as any entities designated on the SDN or equivalent lists. Sanctions compliance is assessed at the outset of every engagement.
This is genuinely difficult. Commodity trade finance lenders place significant weight on trading track record, because it demonstrates the borrower can operationally execute: source cargo, arrange shipping, obtain correct documentation, and deliver on time. First-time traders without at least 12 to 24 months of completed deals face very limited lender appetite. Where we can assist is in structuring a first transaction under a confirmed offtake agreement with a strong buyer, where repayment risk falls primarily on the buyer rather than the trader's balance sheet. We would need to see a confirmed deal, a creditworthy counterparty, and sufficient equity in the transaction.
To provide an initial assessment, we need a deal summary covering the commodity, volumes, transaction structure, counterparty names, jurisdiction, and the financing requirement. For a full credit memo and lender introduction, we will subsequently require audited financial statements (minimum two years), a copy or term sheet of the offtake or sales contract, corporate structure chart and beneficial ownership details, KYC documentation for all directors and significant shareholders, and details of any existing facilities or security. We will provide a full document checklist once we have assessed the initial submission.
Oil and gas trade finance typically prices at a premium to mainstream trade finance because of the additional risks involved: commodity price volatility, complex documentation, jurisdictional exposure, and the specialist knowledge required to underwrite the deal. A documentary LC for a straightforward import/export transaction might be available at 0.5 to 1.0 percent per annum. A pre-export facility for a borrower in a frontier market with a medium-quality offtaker could price at SOFR plus 6 to 8 percent. The spread reflects the lender's risk-adjusted return requirement. Our arrangement fee is a separate success-only charge agreed at mandate.
Yes, where the financing structure follows a commodity or project finance model. We arrange trade finance for biofuels, sustainable aviation fuel (SAF), ammonia, and hydrogen where there is a physical commodity, a confirmed offtake agreement, and a structured repayment mechanism. These transactions are treated as commodity finance deals and underwritten on the same principles as conventional hydrocarbons. For project-level financing of renewable energy infrastructure, our structured commodity finance capabilities are more relevant.
If you have a commodity transaction that needs structured finance, submit it through our client portal. We assess every submission within one business day and provide a structure recommendation, indicative terms, and a shortlist of lenders suited to your deal. All information is treated as strictly confidential.
Financely Group acts as arranger and adviser only. We do not provide credit, capital, or regulated financial services directly. All facilities described on this page are subject to lender credit approval, regulatory compliance, and prevailing market conditions. Indicative rates and advance rates are not guaranteed and may differ materially from final terms offered by lenders. This page does not constitute financial advice. Transactions involving oil and gas commodities may be subject to specific regulatory, environmental, and sanctions compliance requirements that vary by jurisdiction. Financely does not engage with transactions that violate applicable sanctions laws or OFAC, UN, EU, or UK designated party lists.
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.
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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.
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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, engagements 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 and do not execute securities transactions or hold client funds or securities. When a mandate involves the purchase or sale of securities and a registered intermediary is required, any orders are introduced to and executed by one or more independent U.S. broker-dealers registered with the SEC and FINRA. Those broker-dealers are solely responsible for trade execution, custody, and related regulatory obligations. Nothing in this material constitutes an offer, solicitation, or recommendation to buy or sell any security or to engage in any specific transaction. Before engaging Financely Group LLC, Ashford Capital Advisory LLC, or any affiliate, you are responsible for confirming that such engagement complies with your own legal, regulatory, tax, and other requirements. In the United States, certain advisory activities may be conducted in reliance on exemptions available under the Investment Advisers Act of 1940, including the “foreign private adviser” exemption where applicable. Our services and regulatory status may vary by jurisdiction and by transaction type.
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