Case Study — Industry: Energy & Petrochemicals

Unlocking Working Capital Through a Structured Commodity Prepayment Programme

Falcon partnered with a global investment grade energy and petrochemical company to deliver a structured Flash Title Prepayment programme that improved supplier liquidity, secured long term commodity supply and enhanced working capital efficiency.

By combining commercial expertise with a robust funding structure, Falcon enabled both buyer and supplier to achieve their commercial objectives without disrupting established trading relationships.

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Executive Summary

Programme At A Glance

Energy & PetrochemicalsIndustry
Flash Title PrepaymentProgramme Type
Structured Commodity FinanceTransaction Structure
Advance Supplier PaymentFunding Model
Flash Title TransactionCommercial Model

The Situation

The Commercial Challenge

The client required a funding solution that could strengthen supplier relationships, secure the long term availability of strategic commodities and improve working capital across the supply chain.

Traditional financing structures often introduce additional complexity, limit flexibility or place greater pressure on balance sheets.

The client required a commercial solution that would provide early payment to suppliers while allowing commodity deliveries and commercial operations to continue under existing contractual arrangements.

The Approach

Falcon's Solution

Falcon designed and implemented a structured Flash Title Prepayment programme tailored to the client's commercial requirements.

Falcon provided advance funding to the supplier in exchange for future quarterly deliveries of product.

As each shipment was delivered, legal ownership transferred through Falcon before immediately passing to the buyer under a Flash Title structure.

The transaction was supported by Falcon's banking relationships through a receivables purchase arrangement, providing an efficient funding model while transferring credit risk and maintaining commercial continuity for all parties.

Programme Flow
  1. 01Supplier
  2. 02Advance Funding
  3. 03Falcon Flash Title Ownership
  4. 04Quarterly Commodity Delivery
  5. 05Buyer

Results

Commercial Outcomes

01

Improved supplier liquidity through advance funding.

02

Secured long term supply of strategically important commodities.

03

Enhanced working capital and payment flexibility for the buyer.

04

Maintained existing commercial relationships and contractual arrangements.

05

Delivered a structured funding solution supported by Falcon's banking network.

06

Reduced commercial complexity while improving supply chain resilience.

Highlights

Programme Highlights

The programme demonstrates Falcon's ability to structure complex commodity finance solutions that combine commercial flexibility with secure funding.

Advance Funding

Provided early payment to suppliers.

Quarterly Deliveries

Structured product delivery schedule.

Flash Title Structure

Ownership transferred through Falcon.

Structured Receivables Finance

Efficient funding model.

Existing Commercial Contracts

No disruption to established trading relationships.

Banking Support

Enhanced funding capacity and transferred credit risk.

In Their Words

Client Feedback

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