Asset-Based Commodity Financing
Commodity Inventory Financing: Warehouse and Tank Receipt Solutions
Commodity Inventory Financing—also known as Asset Based Commodity Financing or inventory-backed lending—turns your stored goods into working capital. By leveraging warehouse receipts and tank receipts, you access commodity collateral lending that advances 60–75% of indexed market value. This structured commodity finance solution bridges cash-flow mismatches, funds arbitrage, or covers demurrage without liquidating your assets.
What Is Commodity Inventory Financing?
This form of asset based lending uses your inventory as collateral. Warehouse receipt financing applies to dry bulk—grains, sugar, urea—while tank receipt financing covers crude, diesel, gasoil and chemicals. Advances are drawn against daily benchmark prices, repaid from sale proceeds, LC/SBLC settlements or trade finance distribution mechanisms.
Warehouse Receipt Financing
A warehouse receipt is issued by a licensed storage facility, certifying title to a specified quantity and quality of dry goods.
- Advance rate: 60–75% of index price
- Collateral docs: Receipt assignment, third-party inspection, insurance certificate, perfected UCC or local lien filing
- Tenor: 30–180 days
- Use cases: Seasonal stock financing, price arbitrage, working-capital smoothing
Tank Receipt Financing
Tank receipt financing secures advances against petroleum products held in certified terminals or tank farms. A custody or tank receipt document evidences your collateral.
- Advance rate: 60–75% of benchmark price (Brent, WTI, Dubai)
- Collateral docs: Tank receipt assignment, marine insurance, lien perfection on the receipt
- Tenor: 30–90 days
- Use cases: Pre-shipment funding, storage and demurrage coverage, bridge to LC/SBLC issuance
Key Details at a Glance
| Feature | Warehouse Receipt | Tank Receipt |
|---|---|---|
| Collateral Type | Dry bulk (grains, minerals) | Liquid bulk (crude, refined products) |
| Advance Rate | 60–75% | 60–75% |
| Security Perfection | UCC / local lien | UCC / custody certificate |
| Typical Tenor | 30–180 days | 30–90 days |
Example in Practice
Financing a $25 million crude cargo might require assigning a $10 million tank receipt. You draw working capital immediately, cover storage or demurrage fees, and repay from LC/SBLC settlement or spot sale proceeds—unlocking liquidity without selling the cargo.
How Our Asset Based Lending & Distribution Works
With deep expertise in commodity collateral lending and structured trade finance, our team performs rigorous due diligence on your warehouse and tank receipt documents, appraises market value, and perfects security via UCC or local filings. We then structure bespoke inventory-backed credit facilities—integrating price hedges, insurance and demurrage reserves—and distribute the terms through our digital platform to a curated network of over 180 lenders with $30 billion in dry powder. From origination to funding, our process delivers transparent, rapid capital deployment in as little as 48 hours.
At Financely, our full-scope underwriting, asset based lending and trade finance distribution platform turns your warehouse and tank receipts into reliable liquidity. We assess and perfect your commodity collateral, structure tailored inventory-backed facilities, and match you with our global lender network for precise, rapid capital deployment.
Explore Our Asset Based Lending & Trade Finance Distribution ServicesGet Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
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.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
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