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.
Outcome:
reliable liquidity from plantation to port, reducing counterparty risk while accelerating working capital turnover.
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 |
Palm oil deals require multi-stage financing — a one-size-fits-all loan won’t cut it. We structure tailored facilities that track every stage of the commodity cycle, aligning financiers, traders, and buyers around secured instruments and predictable repayment.
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 Quote
Financely 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.