Palm Oil Trade Finance | Pre-Production, PO, Shipment & Inventory Financing
Palm Oil Trade Financing Solutions
Palm oil is one of the world’s most traded agricultural commodities. The supply chain requires capital across multiple stages: pre-production, purchase orders, pre-shipment, and post-shipment. Financely arranges structured trade finance for growers, processors, exporters, and distributors. Facilities cover purchase order finance, letters of credit, SBLC-backed transactions, inventory funding, and receivables finance.
Pre-Production & Purchase Order Financing
Buyers issue purchase orders long before palm oil is harvested or processed. We arrange purchase order finance and pre-production funding to cover seeds, fertilizer, and processing inputs. These facilities are secured against confirmed export contracts, ensuring suppliers have the liquidity to meet production schedules.
Pre-Shipment Facilities
Pre-shipment financing bridges costs between production and shipment. Exporters can access working capital to cover logistics, freight, and storage until documents are presented. Facilities are often linked to letters of credit or SBLCs, ensuring repayment on shipment.
Letters of Credit & SBLCs
In palm oil trade, payment assurance is critical. We structure irrevocable letters of credit (LCs) and standby letters of credit (SBLCs) that guarantee payment against compliant documents. These instruments mitigate buyer default risk and enhance seller confidence in cross-border transactions.
Inventory & Warehouse Receipt Financing
Refiners and distributors often carry significant palm oil stock. Financely structures inventory-backed credit lines and warehouse receipt financing to monetize stored product. Lenders rely on collateral managers and warehouse receipts to release capital without requiring immediate sales.
Receivables & Post-Shipment Finance
Post-shipment financing accelerates cash flow once cargo has shipped. Facilities include invoice discounting, factoring, and forfaiting against creditworthy buyers. This ensures exporters don’t wait 30–120 days for payment, improving liquidity cycles.
Example Palm Oil Financing Structures
| Stage | Instrument | Typical Tenor | Notes |
|---|---|---|---|
| Pre-Production | PO / Input Finance | 30–180 days | Backed by confirmed export orders |
| Pre-Shipment | Working Capital Facility | 60–120 days | Covers logistics & freight |
| Shipment | LC / SBLC | 90–180 days | Payment guarantee against docs |
| Inventory | Warehouse Receipt Finance | 90–270 days | Collateralized by stock |
| Post-Shipment | Receivables / Forfaiting | 30–120 days | Advance against invoices |
Engagement & Pricing (USD)
| Service Tier | Fee (USD) | Notes |
|---|---|---|
| Full Palm Oil Trade Finance Mandate | From $15,000 | Covers structuring, underwriting, lender distribution |
| Facility Arrangement (Single Stage) | From $5,000 | PO, Pre-Shipment, or Receivables only |
| Success Fee | 1.5% – 2.5% | Applied on funded transaction value |
Request a Quote for Palm Oil Financing
Financely arranges PO, pre-shipment, LC/SBLC, inventory, and receivables facilities for palm oil transactions. Minimum engagement $5,000.
Request a QuoteFinancely is an advisory and placement firm. We are not a lender or trading counterparty. All facilities are subject to underwriting, compliance, and bank approval. Fees are quoted in USD. Minimum engagement $5,000. Success fees are payable on funded amounts.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
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.
Trade Finance
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 RequestProject Finance
Access 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.
Submit a RequestAcquisitions
Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.
Submit a RequestFor Banks
Financely 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.
