INDEPENDENT TRANSACTION UNDERWRITING
Commercial Triage Before Institutional Due Diligence.
PCS provides an independent Underwriting Eligibility Assessment to help institutions determine whether a proposed physical fuel transaction presents the commercial information, transaction structure, and supporting documentation necessary before legal review, compliance resources, banking engagement, institutional due diligence, management attention, and capital are committed.
BEFORE DUE DILIGENCE
Not every proposed transaction deserves institutional due diligence.
An independent Underwriting Evaluation Assessment helps institutions determine whether a proposed transaction presents the commercial information, transaction structure, and supporting documentation necessary before committing capital, legal review, banking engagement, compliance resources, management attention, and institutional due diligence.
ASSESSMENT PROCESS
STAGE ONE
Underwriting Eligibility Assessment (UEA)
Underwriting Eligibility Assessment (UEA) reviews the transaction procedures to determine whether the proposed transaction presents sufficient, realistic information to support further underwriting.
STAGE TWO
Capital Risk Gate (CRG)
Capital Risk Gate (CRG) evaluates the transaction’s economics and transaction characteristics to determine whether the proposed transaction reconciles into a commercially coherent proposition.
CAPITAL RISK GATE
Every proposed transaction must first satisfy three underwriting tests.
Every commercial transaction should be capable of explaining its own existence.
That explanation is rarely found in a single document or commercial term. It emerges from the transaction as a whole. The commercial decisions, the capital required to execute them, and the operational characteristics should together form a coherent, commercially rational proposition.
The three underwriting tests examine each of these elements independently because each answers a different commercial question. Together, they provide a structured basis for determining whether a proposed transaction demonstrates the characteristics expected before institutional capital, banking engagement, legal review, compliance effort, and due diligence are committed.
THREE UNDERWRITING PERSPECTIVES
Every proposed transaction is evaluated from three distinct underwriting perspectives. Each examines a different aspect of the proposed transaction to determine whether further institutional engagement is commercially justified.
The Transaction
The first perspective evaluates the proposed transaction as presented. It determines whether the parties, commercial procedures, transaction structure, and supporting information reconcile into a recognizable physical fuel transaction suitable for underwriting.
The Physical Trade
The second perspective evaluates the physical trade itself. It examines the commercial decisions presented—including product, origin, volume, pricing, logistics, and execution characteristics—to determine whether they reconcile into a commercially coherent physical fuel transaction.
The Capital Perspective
The final perspective evaluates the proposed transaction from the perspective of institutional capital. It identifies transaction characteristics and prevailing market conditions that may influence institutional risk, while leaving funding decisions entirely to the capital provider.
BEFORE YOU COMMIT