Borrowing-Base Facility Setup for Commodity Traders
Borrowing-Base Facility Setup for Commodity Traders
Commodity trading demands capital flexibility. Prices move, cargos sail, and contracts settle on different timelines. A borrowing-base facility converts your eligible inventory and receivables into a revolving credit line, scaling up and down with your trading activity. Financely structures and places these facilities with banks and private credit funds, ensuring alignment between your collateral and liquidity.
Collateral We Finance
| Collateral Type | Advance Rate Range |
|---|---|
| In-Transit Inventory | 70–85 % of market value (insured and tracked) |
| Warehouse Inventory | 65–80 % of market value (bonded warehouse receipts) |
| Eligible Receivables | 75–90 % of invoice value (credit-insured) |
| Assigned Contracts | Up to 80 % of confirmed contract value |
Our Setup Process
- Trade Flow Mapping – We analyse your cargo movements, counterparties, and payment terms.
- Eligibility Matrix Design – Collateral eligibility rules to maximise advance rates while satisfying lenders.
- Facility Modelling – Borrowing-base formula, margin triggers, and draw schedules built for your cycle.
- Collateral Control Mechanisms – Inspection, insurance, and release procedures embedded in agreements.
- Lender Placement – Facility presented to banks and credit funds experienced in structured commodity finance.
- Closing & Implementation – Final legal execution and operational handover to your treasury team.
Why Financely
- Commodity-trade structuring experience across metals, energy, and agri.
- Established relationships with top-tier collateral managers and inspection companies.
- Ability to blend bank and fund tranches for optimal pricing and flexibility.
- Full facility manual delivered for internal control and audit purposes.
Ideal Client Profile
- Annual turnover USD 50 million+
- Inventory and receivables in multiple jurisdictions
- Established counterparties and verifiable trade documentation
- Funding need USD 5 million–200 million
Ready to unlock liquidity from your trading assets? Contact us to scope your borrowing-base facility.
Start Your Facility SetupFinancely Group structures borrowing-base facilities on a best-efforts basis. Final approval remains subject to lender due diligence, collateral verification, and a signed mandate agreement.
Get 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.
Trade Finance
Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.
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Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
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Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.
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Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.
Submit a RequestOnce we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.
Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.
