Back-to-Back Commodity Financing Solutions
We arrange back-to-back financing
for commodity transactions, enabling traders to purchase goods from a supplier and sell to an end buyer under separate contracts without tying up significant working capital. These facilities are ideal for established traders managing large, margin-protected trades where timing between purchase and sale needs bridging.
Our Advantage:
Through our lender and bank network, we secure back-to-back trade credit structures globally, covering physical commodities such as metals, energy products, and agricultural goods. We manage the full lifecycle — from structuring to funding — to ensure smooth execution.
What is Back-to-Back Financing?
Back-to-back financing involves securing a purchase contract from a supplier and an onward sales contract with a buyer, then arranging funding to pay the supplier using the buyer’s contract as collateral or repayment source. It’s commonly used in commodity trading to bridge payment timelines and reduce liquidity pressure.
Key Benefits
- Preserves working capital for other trading opportunities
- Aligns payment terms between supplier and buyer contracts
- Improves trade execution speed and reliability
- Reduces the need for unsecured corporate borrowing
- Enables scaling up of larger volume trades without balance sheet strain
Eligible Commodities
- Base and precious metals
- Crude oil, refined petroleum products, LNG/LPG
- Grains, oilseeds, sugar, coffee, cocoa
- Timber and forestry products
Engagement Criteria
- Minimum transaction value: $5M USD(single or annual contract value)
- Counterparties must pass compliance and credit checks
- Valid purchase and sales contracts with clear delivery terms
- Commodity must have transparent pricing and established market demand
Commercial Terms
Starting Retainer:
$45,000 USD
Retainer payable upon mandate signature. Success fees negotiated per transaction.
Minimum Transaction Size:
$5M USD
Request a Proposal
Submission Requirements
| Requirement |
Details |
| Purchase Contract |
Executed supplier agreement with full delivery and payment terms |
| Sales Contract |
Onward sales agreement with confirmed buyer and terms |
| Commodity Details |
Full description, quantity, origin, and delivery location |
| Compliance Documents |
KYC documents, corporate registration, and proof of trading history |
Financely Group acts as an arranger for back-to-back commodity financing. All facilities are provided by regulated institutions and subject to full compliance and credit approval.