Every week a new blast hits trading inboxes: “EN590 diesel, Jet A1 and D6 waiting in Rotterdam—wire a small transfer fee and lift tomorrow.” The sender brags about “unlimited volume,” flashes a Soft Corporate Offer, and swears an “exit buyer” such as FedEx or UPS will scoop the cargo at a fat premium. Trim away the buzzwords and you’re staring at a slick remake of the Nigerian-prince letter. Nobody with barrels worth millions leaves them idle in a tank while begging total strangers to buy below market; majors or big-ticket trading desks clear real surplus within hours.
Genuine trades ride two rails. The first is the classic documentary Letter of Credit or standby LC issued under UCP 600—payment only flows once SGS or Bureau Veritas confirm quality and quantity. The second is the structured prepayment facility, where a trader advances cash to a producer and recoups it through future deliveries that over-collateralise the loan by roughly 150 percent.The trader syndicates most of that credit risk to banks but keeps a slice—skin in the game—to prove alignment.Revolving tranches cover 30- to 90-day working-capital gaps; longer tenors up to five years bankroll cap-ex.Far from “shadow banking,” these deals sit squarely on regulated balance-sheets, monitored by assignment of the underlying sales contract.
Because pricing is indexed—Brent for crude, ICE Gasoil for diesel—the producer still realises market value; the volume buffer shields lenders if prices tank.Banks can seize cargo flow if default looms, a safety net nonexistent in advance-fee fairy tales.
Margin is earned by choreographing a narrow spread: source at Gasoil minus, shave freight and storage, then freeze the differential with a hedge. Say ICE Gasoil sits at $900/MT; you secure diesel at minus $15. After $7 in freight, inspection and finance, you bank $8/MT— only once you short equal futures. If flat price craters $50, paper gains offset the physical loss; if it rallies, you pay margin on the hedge but collect upside in the cargo. “No-risk arbitrage” with zero hedging is marketing smoke.
Desks neutralise outright exposure with ICE Gasoil, ULSD, or Brent futures, and pad longer voyages with options. Perfect correlation is rare, yet a close grade-and-region match leaves pennies of basis risk instead of dollars of naked exposure.
| Pitch Line | Reality Check |
|---|---|
| “Product in tank—just pay injection fees.” | Terminals only invoice the legal titleholder. Up-front “injection” payments outside LC channels equal fraud. |
| “Unlimited volume at fixed discount.” | Real inventory is finite; discounts float. Unlimited cheap barrels live only in PowerPoint. |
| “We skip banks for speed.” | Banks, inspectors and insurers form the safety net. Remove them, lose accountability. |
| “Exit buyer—FedEx, UPS, an airline—will pay once you lock the lot.” | Carriers run multi-year supply contracts and audit fuel to ASTM-D1655. They don’t bankroll hobby brokers. |
Advance fees vanish as soon as they land. Splitting them just halves the refund—still zero.
Most are lifted from old shipments and Photoshopped. Call SGS or the terminal with the reference number; nine times out of ten, it never existed.
Futures liquidity dries up when everyone rushes for the exit. Buying insurance after the hurricane warning is pointless.
No. The credit sits on banking books; the trader merely intermediates while carrying a token slice to stay aligned.
The buffer protects both sides. If crude drops 20 percent, extra pledged volume still services the loan while the producer keeps liquidity.
Shoot us your paperwork. Financely will verify tank numbers, vet bank instruments, and stress-test your hedge—within one business day—before six-figure mistakes happen.
Book a Scam & Hedge AuditFinancely Group shares market insight, not legal counsel. Always consult qualified advisors before committing capital.
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.
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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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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, 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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