Petroleum Products Trade Finance
Petroleum Products Trade Finance
Cash settles quickly in physical oil, but the cargo itself can spend forty days on the water and ten in storage. That gap strains balance sheets even at USD-denominated margins. Financely structures short-tenor debt, bridge capital and revolving letters of credit so traders can buy, transport and resell petroleum products without freezing equity in transit.
How We Add Value
- Structuring: We convert purchase orders, sales contracts and inventory into collateral a lender will accept.
- Distribution: Facilities are matched with banks that specialise in oil trade finance, private credit desks and insurance-wrapped note buyers.
- Execution: We coordinate KYC, LC issuances, collateral management agreements and drawdown mechanics so the cargo lifts on schedule.
- Ongoing Support: Facility utilisation, margin calls and repayment waterfalls are monitored through a live dashboard shared with lender and borrower.
Typical Facility Structures
| Structure | Purpose | Tenor | Advance Rate |
|---|---|---|---|
| Transactional LC | Pay refinery or storage terminal at sight | 30–90 days | Up to 100 % of cost |
| Bridge Loan | Cover freight and storage until final sale | 60–120 days | 70–85 % of FOB value |
| Borrowing-Base Revolver | Roll multiple cargoes under one credit line | 12 months revolving | 65–80 % of NWE market price |
| Repo / Title Transfer | Monetise in-tank inventory | 30–180 days | 60–75 % of Platts minus discount |
End-to-End Process
- Pre-Mandate Review – Trader submits deal history, financials and trade flow.
- Mandate & Term Sheet – Facility size, tenor, pricing and security finalised.
- Due Diligence – Lender KYC, collateral audit and contract verification.
- Documentation – LC wording, pledge agreements and credit-insurance cover completed.
- Drawdown – Funds or LC issued to supplier; cargo lifts and flows through the voyage.
- Repayment – Sale proceeds sweep to lender; facility resets for next cargo.
Eligibility Snapshot
- Minimum annual turnover USD 50 million in oil or refined products
- Audited financials for two years
- Verified counterparties for both purchase and sale legs
- Robust risk controls and trade-finance history
Need working capital for your next petroleum cargo? Submit your trade details and receive an indicative structure within two business days.
Request Trade FinanceConclusion
Market spreads shift every hour, but execution gaps destroy margin in seconds. Financely secures the capital, letters of credit and credit-insurance wrappers that keep petroleum cargoes moving—so traders capture price not paperwork.
Financely Group arranges debt and credit facilities on a best-efforts basis. All funding is subject to lender approval, compliance screening and a signed mandate. We reserve the right to decline transactions that do not meet professional or legal standards.
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.
