Trade and Structured Finance for Commodity Transactions
In international commodity trade, the payment mechanism matters as much as the price: it determines when the seller is paid, when the buyer receives title and who carries the risk in between. FUSHKOV GCG can arrange and structure payment and financing solutions around its physical contracts, subject to KYC, credit approval and contract terms.
What the service covers
We help counterparties choose a payment structure that matches the transaction: the level of trust between the parties, the countries involved, the shipment schedule and the working capital needs of each side. Where a structure involves third-party financing, it is provided by financial institutions under their own approval and terms.
Instruments
Typical structures (reference)
| Structure | Key feature | Main point of attention |
|---|---|---|
| Letter of credit | Seller relies on the bank’s undertaking | Strict compliance of documents with LC terms |
| Documentary collection | Banks handle documents, not payment risk | Buyer may refuse documents |
| Prepayment / pre-export | Producer receives funds before shipment | Performance risk of the producer |
| Inventory finance | Stock serves as collateral | Control and insurance of stored goods |
Reference overview of commonly used structures. The scope of the service, the responsibilities of each party and all commercial terms are agreed case by case and fixed in the contract.
How a structure is agreed
Every structure starts with know-your-customer (KYC) checks of all parties. The proposed transaction is then assessed and, where financing is involved, submitted for credit approval. Only after approval are the payment terms, security and documents fixed in the contract. No financing is committed before these steps are complete, and we never ask for upfront fees to issue an offer or documents — see our Fraud warning.
Why FUSHKOV GCG
Frequently asked questions
Do you guarantee financing?
No. We can arrange or structure financing, but any financing is subject to KYC, credit approval and the terms of the contract.
What is the difference between an LC and a documentary collection?
Under a letter of credit the issuing bank undertakes to pay against complying documents. Under a collection the banks only handle the documents; payment depends on the buyer.
Can producers receive a prepayment?
Prepayment against future deliveries is possible within a supply or off-take agreement, subject to KYC, credit approval and appropriate security.
See also
Discuss your project
Describe the transaction, counterparties, volumes and the payment structure you are considering — we will discuss the options.
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