Base Metals Trade Finance: Aluminum, Nickel, Zinc, Lead & Tin
We execute paid mandates to arrange committed trade finance for refined base metals and select concentrates. Focus metals include aluminum (ingots/billets), nickel (briquettes/plates), zinc, lead, and tin. Execution is built on lender-grade controls—LME warrant handling, enforceable title, collateral managers, LC wording that settles cleanly, and hedging of price and premium risk. We work on retainers only. Any securities-related steps are chaperoned.
Service snapshot:
minimum facility $25M
• typical range $25M–$300M
• retainer $62,500
(non-refundable) • success 1.25–2.0%
on committed capacity/funded amount • timeline 30–90 days
from complete data and counterparties under NDA
Mandate Scope
Products financed
Al ingots/billets, Ni briquettes/plates, Zn/ Pb/ Sn ingots; Zn/Pb concentrates where controls allow.
Structure set
LME warrant repo/on-warrant financing, pre-export (PXF), LC issuance & confirmation/discount, receivables purchase, inventory/borrowing base against WRs.
Counterparties
Commodity banks, merchants, private credit, and insurance-supported capacity sized to route and jurisdiction.
Controls
LME warrant control/escrow, collateral managers, approved brands, inspection, WR enforceability, hedge policy (LME + regional premiums), KYC/AML.
Common Roadblocks vs Our Execution
Roadblocks
- Loose warrant custody and unclear title on on-/off-warrant moves.
- Unhedged LME and premium basis risk (e.g., Midwest Premium for aluminum).
- WRs and tri-party storage not enforceable in practice; gaps in insurance.
- For Zn/Pb concentrates: assay disputes and penalties not reflected in economics.
What we execute
- Warrant chain with custodian controls, de-warrant/re-warrant SOPs, and pledged accounts.
- Hedging of LME flat price plus documented premium hedges; matched to tenors and shipment schedule.
- WR templates and tri-party/field-warehouse terms vetted by lender counsel; cargo and liability insurance aligned to risk.
- For concentrates: sampling protocol with nominated labs (SGS/Cotecna/Alex Stewart), umpire rights, and penalties embedded in advance rates.
How We Get You Funded
| Workstream |
What we deliver |
Why lenders approve |
| Counterparty grid
|
Banks, merchants, and private credit mapped to your metals, brands, routes, and jurisdictions. |
Capital matched to risk and collateral profile from day one. |
| Data & QA pack
|
Brand lists, warrant records, WR templates, insurance, logistics chain, hedge policy, KYC/sanctions, and trade history. |
Cuts diligence loops; gives credit committees complete files. |
| Structure & documents
|
LME warrant repo, inventory BB, receivables purchase, PXF, LC issuance/confirmation/discount; CPs and covenants tailored to flows. |
Clear recourse and enforceable mechanics reduce severity. |
| Control stack
|
Collateral manager appointment, warrant custody/escrow, field-warehouse audits, LC wording (UCP600/URC522), account control. |
Risk is managed at goods, documents, and cash touchpoints. |
| Syndication & close
|
IOIs, term sheets, CP checklist, settlement calendar, and post-close reporting cadence. |
Predictable execution and capacity you can roll and scale. |
Structure Menu & Use Cases
| LME Warrant Repo / On-Warrant
|
Financing against LME warrants with custody control; de-warrant/re-warrant SOPs for deliveries. |
| Inventory / Borrowing Base
|
Revolver against WRs with concentration limits by brand, location, and counterparty. |
| Receivables Purchase
|
True sale/discount of eligible AR; recourse set by buyer quality and jurisdiction. |
| Pre-Export (PXF)
|
Advance against contracted offtake; production and shipment calendar linked to hedges. |
| LC Issuance & Confirmation/Discount
|
Issuing bank paper confirmed and discounted at presentation; clean settlement mechanics. |
Execution Process
1) Intake
Confirm metals/brands, routes, storage, hedge policy, and buyer set. NDA and KYC opened.
2) Controls
Warrant custody plan, WR/tri-party terms, collateral manager shortlist, insurance, LC wording, account control.
3) Term sheets
Issue calibrated lender/merchant term sheets with CPs and control stack embedded.
4) Closing
Docs and CPs cleared; custody and WRs tested; settlement calendar agreed; first draw.
Illustrative Timeline (30–90 Days)
Day 1
Kickoff; NDA/KYC; data and control checklist issued
Day 7
Collateral manager RFP; custody/WR terms agreed; draft LC wording
Day 21
Term sheets received; control stack locked; CP list finalized
Day 45
Docs near-final; custody tests complete; settlement calendar set
Day 60–90
Signing and first draw; reporting cadence live
Fees, Minimums, & Terms
| Item |
Terms |
Notes |
| Minimum facility
|
$25,000,000+ |
Aggregation by route/brand/location is workable; pricing may adjust. |
| Retainer
|
$62,500 (non-refundable) |
Required before lender process, control stack, and documentation begin. |
| Success fee
|
1.25–2.0% of committed capacity or first funded amount |
Tiered by size, complexity, and syndication mix. |
| Third-party costs
|
Collateral manager, custody/warrants, inspection/assays, counsel, LC/confirm fees |
Paid by client within agreed caps; disclosed before commitment. |
Team & Capability
Deal operators
Combined decades across commodity banks, merchants, LME warehousing, inspection houses, and collateral management.
Chaperoned activity
Any securities-related steps are conducted through a licensed chaperone (Member FINRA/SIPC).
Execution focus
Real goods, enforceable documents, verified cash flows. No “platform” claims or leased-instrument schemes.
Base metals clear when controls are tight and transparent. We put those controls in place—warrant custody, WR enforceability, collateral managers, LC wording, and hedging that protects both sides.
Request Your Term Sheet
Share metals/brands, routes and storage, buyer set, hedge policy, and control preferences (warrants, WRs, collateral manager). We will return structures, CPs, and a settlement calendar.
Start The Process
Financely is a placement and advisory firm. We act on paid mandates only. All engagements require KYC/AML and sanctions screening. Any securities-related activities, where applicable, are conducted through a licensed chaperone, Member FINRA/SIPC. We do not trade physical commodities; we arrange finance against verifiable goods, documents, and cash flows. This page is informational and not an offer or solicitation.