Bridge Financing for Commodity Transactions
We structure and secure bridge financing solutions
for commodity trades, providing short-term capital to cover purchase, transport, or pre-payment obligations until final settlement is received. This service is critical for traders and corporates navigating timing gaps between shipment and payment.
Why Financely:
Our lender network includes trade finance funds, private credit institutions, and structured commodity desks capable of underwriting time-sensitive transactions in complex jurisdictions.
What is Bridge Financing in Commodity Trade?
Bridge financing in the commodities sector is a short-term facility designed to “bridge” the gap between the purchase or shipment of goods and the receipt of proceeds from the end buyer or off-taker. Typical tenors range from 30 to 180 days, often secured against the commodity itself or receivables from an investment-grade counterparty.
Common Use Cases
- Funding pre-payment obligations to suppliers
- Covering freight, insurance, and export costs before buyer payment
- Unlocking liquidity during customs clearance or inspection delays
- Facilitating back-to-back trades with staggered settlement dates
Eligible Commodities
We work with transactions involving:
- Base and precious metals
- Energy products (crude oil, refined fuels, LNG)
- Agricultural commodities and softs
- Bulk industrial materials
Engagement Criteria
- Minimum transaction value: $5M USD(can be annual contract value)
- Full trade documentation: contracts, invoices, and transport documents
- Counterparty creditworthiness or acceptable collateral
- Jurisdictions and routes approved by our compliance team
Commercial Terms
Starting Retainer:
$40,000 USD
Retainer payable on mandate signature. Success fee agreed per transaction.
Minimum Size:
$5M USD
Request a Proposal
Submission Requirements
| Requirement |
Details |
| Trade Contract |
Executed sales or purchase agreement with counterparty details |
| Commodity Details |
Type, grade, quantity, incoterms, and origin |
| Transport Documents |
Bill of Lading, inspection certificates, insurance policy |
| Counterparty Information |
Buyer/off-taker identity and payment history or credit rating |
Financely Group acts strictly as an arranger. All facilities are placed through regulated entities, subject to compliance approval and availability of funds at the time of execution.