Course 09 of 20 · Biofuels and SAF Desk Academy

Working Capital, Prepayment & Trade Credit

Stage C, Funding and environmental entitlements. Level 5 of 10.

The funding cycle of a renewable fuels book: prepayment and advance structures, borrowing base treatment of feedstock, inventory and entitlements, counterparty credit limits and collateral.

128 chapters · 12 modules · every chapter one 8 to 10 minute explainer · builds on: Course 03, Course 05, Course 08

Enrol or enquire See the 128 chapters
How a chapter is delivered

One chapter is one idea taken to the point of use

Each chapter covers one idea to the point where you can use it, and comes two ways: a narrated explainer, and a deep dive audio discussion of around thirty minutes that works the same material at depth.

Self-paced throughout, and the same chapters can be taught as a cohort. Chapters run in order: each one assumes only what the chapters before it taught, and capability belonging to a later course is named and deferred rather than half-covered.

Curriculum

12 modules · 128 chapters

Open any module for its full chapter list, in teaching order.

M0 Why a Renewable Fuels Book Needs Money Before It Earns Ch 1-10
  1. Three Assets Funded as One Consignment
  2. The Collector Wants Cash and the Blender Pays Later
  3. Margin Earned and Cash Received Are Not the Same Event
  4. Three Seats: The Financier, The Trader and The Supplier
  5. Who Lends Against a Renewable Fuels Book
  6. What a Lender Sees When Attribute Carries the Value
  7. The Capabilities Assumed From Here
  8. The Funding Shape of a Renewable Fuels Year
  9. Funding Risk and Credit Risk Kept Apart
  10. The Route Through This Subject
M1 The Cash Cycle From Collection to Compliance Sale Ch 11-21
  1. Dating the Cash Cycle of a Waste-Feedstock Parcel
  2. Payment at Collection and the Aggregator's Own Cash Need
  3. The Evidence Lag Between Delivery and Declaration
  4. Days Held in Tank Before a Compliance Buyer Lifts
  5. The Entitlement Lag After the Molecule Is Sold
  6. Freight, Testing and Storage Paid on Their Own Dates
  7. Import Duty, Levies and Cash That Leaves at the Border
  8. Converting the Cycle Into a Funding Requirement
  9. A Worked Cycle, Part One: Collection to Processing Gate
  10. A Worked Cycle, Part Two: Product Sale to Entitlement Cash
  11. Payment Terms as the Cheapest Funding Available
M2 Prepayment and Advances to Feedstock Suppliers Ch 22-33
  1. Why an Advance Reaches a Collection Network at All
  2. Advance Payment Against Deposit Held as Security
  3. Sizing an Advance Against Verified Collection Volumes
  4. Repayment in Tonnes Delivered Rather Than Cash Returned
  5. The Per-Tonne Drawdown and the Running Balance
  6. Tranching an Advance Against Collection Milestones
  7. Pricing the Advance Into the Feedstock Differential
  8. Equipment Finance Dressed as a Feedstock Advance
  9. The Advance That Buys Exclusivity Rather Than Tonnes
  10. Prepaying an Importer Against a Cargo Not Yet Loaded
  11. Advances Taken From a Compliance Buyer Instead
  12. The Aggregator That Fails Holding an Advance
M3 Security, Title and Control Over a Funded Consignment Ch 34-44
  1. Where Title Sits While a Parcel Is Funded
  2. Pledging Feedstock in a Third-Party Tank
  3. Collateral Management and Stock Monitoring Compared
  4. Commingled Feedstock and the Lender's Share of a Tank
  5. Security Over Evidence That Travels Separately
  6. The Collection Account the Borrower Cannot Draw On
  7. Assigning Receivables From an Obligated Blender
  8. Security Over a Registry Account Holding Entitlements
  9. Retention of Title and the Blended Litre
  10. Registering a Charge in the Country Holding the Tank
  11. A Security Package Valued by Recovery
M4 Borrowing Base Eligibility on a Renewable Fuels Book Ch 45-56
  1. What a Borrowing Base Does on This Desk
  2. The Eligibility Question Asked of Every Tonne
  3. Uncertified Feedstock in the Collateral Pool
  4. Feedstock Awaiting Its Sustainability Declaration
  5. Work in Progress Inside a Processing Plant
  6. Finished Product Held Against a Specification Risk
  7. Goods Afloat and the Document That Carries Them
  8. Entitlements as a Borrowing Base Line
  9. Receivables From a Small Blender Versus a Major Obligated Party
  10. The Ineligibles Catalogue a Renewable Fuels Book Generates
  11. Building a Borrowing Base Certificate, Part One: The Asset Schedule
  12. Building a Borrowing Base Certificate, Part Two: Deductions and Availability
M5 Advance Rates and the Marking of a Three-Part Asset Ch 57-66
  1. What an Advance Rate Is Compensating For
  2. Why Waste Feedstock and Crop Feedstock Fund Differently
  3. Marking the Physical Component of a Parcel
  4. Marking the Attribute Component Conditionally
  5. The Haircut Taken for Jurisdictional Mobility
  6. Reserves Set Against Evidence and Audit Risk
  7. Hedging Required as a Condition of Funding
  8. The Equity Slice a Trader Must Fund Itself
  9. Renegotiating a Rate After a Scheme Design Change
  10. One Parcel Valued From Three Seats
M6 Entitlements and Credits as Collateral Ch 67-77
  1. An Entitlement Is Collateral With a Clawback
  2. Which Entitlements a Lender Will Look At
  3. Transferability as the First Collateral Test
  4. Who May Hold an Account and Why It Matters
  5. Marking a Credit Position for Collateral Purposes
  6. Vintage, Expiry and the Credit That Ages Out
  7. Lending Against Credits Not Yet Generated
  8. The Invalidation Reserve and Who Carries It
  9. A Credit Pledged Twice Across Two Facilities
  10. Monetising Credits Early to Release Cash
  11. An Entitlement Collateral Decision Worked Through
M7 Counterparty Credit Across the Renewable Fuels Chain Ch 78-88
  1. The Counterparties a Renewable Fuels Book Faces
  2. Assessing a Collector With No Accounts to Read
  3. Assessing an Overseas Feedstock Aggregator
  4. Certification Status as a Credit Input
  5. Assessing an Obligated Blender That Must Buy
  6. Assessing a Single-Plant Producer
  7. Assessing an Airline or Corporate Claim Buyer
  8. Group Structures, Guarantors and the Signing Entity
  9. Soft Signals That Precede a Payment Failure
  10. Monitoring a Supplier Between Collections
  11. A Credit Assessment of One Feedstock Supplier
M8 Limits, Exposure and Credit Support Ch 89-99
  1. What Exposure Means on a Renewable Fuels Book
  2. Prepayment Exposure Measured Against Delivery Progress
  3. Exposure on Product Delivered to a Blender Unpaid
  4. Setting a Limit for a Counterparty That Is Also a Supplier
  5. Tenor and Country Ceilings on a Feedstock Import Programme
  6. Concentration in One Feedstock Category
  7. Documentary Credits for an Imported Feedstock Cargo
  8. The Declaration a Documentary Credit Cannot Guarantee
  9. Standby Credits and Parent Guarantees Compared
  10. Credit Insurance on a Renewable Fuels Receivable
  11. Netting and Set-Off Against a Supplier Who Also Buys
M9 Facilities, Covenants and Lender Reporting Ch 100-109
  1. The Facility Shape a Renewable Fuels Book Needs
  2. Committed and Uncommitted Lines in a Scheme Shock
  3. What a Facility Costs Beyond the Margin
  4. Covenants Written for a Renewable Fuels Borrower
  5. Headroom Measured Against a Suspended Certificate
  6. Two Definitions of Eligible Stock in One Agreement
  7. Managing a Breach Before the Lender Finds It
  8. The Reporting Pack a Lender Should Receive
  9. Explaining a Renewable Fuels Book to a Credit Committee
  10. Diversifying Lenders Before One Withdraws
M10 Distress and Recovery on a Funded Renewable Fuels Book Ch 110-119
  1. The First Signals of a Funding Squeeze
  2. Choosing What to Sell When Cash Runs Short
  3. When a Supplier's Certificate Is Withdrawn Mid-Voyage
  4. A Blender That Cannot Pay for Delivered Fuel
  5. Realising Security Over Feedstock in a Foreign Tank
  6. Selling Collateral Whose Evidence Is in Question
  7. An Invalidation Claim Arriving After the Credit Was Sold
  8. Restructuring an Advance a Supplier Cannot Deliver Against
  9. Recognising the Loss in the Period It Became Clear
  10. One Aggregator Default Traced to Final Settlement
M11 One Funded Book End to End Ch 120-128
  1. The Book To Be Funded and Its Constraints
  2. Structuring the Supplier Advances for This Book
  3. Assembling the Security and Control Package
  4. Sizing the Facility and the First Drawdown
  5. The Audit Finding That Shrinks Availability
  6. Settling the Position and Counting the Cost
  7. The Funding Cost Per Tonne Every Deal Must Carry
  8. Handing the Open Questions to Their Owners
  9. What Funding and Credit Discipline Cannot Fix

The brochure gives each of these 128 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 9 of twenty

It stands alone, and it is also the entry point to the Biofuels and SAF Desk Academy pathway.

Enrol or enquire See the whole pathway