Commodity Trade Finance Lending

Commodity Trade Finance Lending

Commodity Trade Finance Lending

Bottom line: we arrange working capital for physical commodity flows with clear security, clean documents, and a route a credit committee will approve. You get a bankable file, real lenders, and pricing negotiated off current appetite, not wishful thinking. If the numbers do not work, we say it and stop the file.
Facility Sizes
From USD 0.5 million to USD 50 million per borrower group, higher with syndication.
Tenor
Sight to 180 days for trade cycles, up to 360 days case by case with rollover tests.
Commodities
Agriculture, metals, energy by-products, refined products, fertilizers, and selected softs.

What We Finance

Pre-Export And Pre-Payment
  • Advance against production and offtake contracts.
  • Assignment of receivables, escrow, and collection controls.
  • Commodity hedging program mapped to drawdowns.
Transactional Trade Lines
  • Letters of credit issuance and confirmation.
  • Standby letters of credit for payment and performance.
  • Usance or UPAS structures with discount at sight.
Borrowing Base And Inventory
  • Availability on eligible receivables and stock.
  • Collateral management agreement and warehouse control.
  • Repos and title transfer in transit or at hub.

How We Run The Process

  1. Intake And Proof Of Trade. We validate real flows: purchase orders, sales contracts, shipment plan, insurance, and price risk policy. If the flow is not real, we stop here.
  2. Structure And Security Map. We design a route across letters of credit or standby letters of credit, receivables finance, inventory control, and reimbursement paths. Everything lines up with UCP 600 for documentary credits and ISP98 for standby credits.
  3. Underwriting Pack. Cash flow model, borrowing base template, shipment and storage schedule, collateral narrative, draft wording for letters of credit, and a clean data room. Short, readable, bank-ready.
  4. Distribution. We place with regulated partners, banks, and funds that actually lend to commodity names. Two to three term sheets is the target for clean files.
  5. Negotiation. We push for a sensible spread on the utilization period, remove junk fees, and keep covenants tight and workable.
  6. Closing To Draw. Conditions precedent, confirmations, reimbursements, issuance or first availability, then 60 days of post-close support.

Risk Controls That Make Credit Comfortable

Hard Controls
  • Notice of assignment and controlled collection accounts.
  • Tri-party collateral management at approved warehouses.
  • Title transfer in transit with original documents tracked.
  • Insurance with lender loss payee and agreed endorsements.
  • Shipment-linked draw mechanics and stop-fund triggers.
Rules And Documentation
  • UCP 600 documentary credits and ISP98 standby credits.
  • Clear presentation periods and original document counts.
  • Incoterms matched to risk transfer and insurance terms.
  • Sanctions, know your customer, and beneficial ownership cleared upfront.

Borrowing Base At A Glance

Pool Advance Rates And Notes
Eligible receivables Up to 85 percent on approved buyers, aging under 60 days, concentration caps set by buyer and country.
Inventory in warehouse Up to 70 percent on fungible, hedged stock under collateral management. Haircuts by commodity and location.
In-transit title Up to 60 percent with clean original documents and insurance to lender requirements.
Reserves Dilution, currency, margin, and other reserves. Borrowing base cert delivered weekly or per draw.

Pricing And Fees

  • Lender Economics. Reference rate plus spread on utilization; commitment fee on undrawn where applicable; confirmation fees per annum for confirmed letters of credit; standard advising and Society for Worldwide Interbank Financial Telecommunication message charges.
  • Our Economics. Retainer of nine thousand six hundred fifty United States dollars at engagement. Success fee of two and a half percent of letter of credit or standby letter of credit face issued, or three percent of any margin or gap capital raised. Minimum success fee fifteen thousand United States dollars, payable at issuance or first draw. Escrow available.
  • Negotiation Targets. We push for spreads in a tight band for clean, insured flows and we remove junk add-ons. If pricing cannot clear, we stop the file and do not waste time.

Eligibility And What We Need To Start

Eligibility
  • Real trade with verifiable purchase orders or sales contracts and a workable shipment plan.
  • Directors available for know your customer checks; group structure and beneficial owners disclosed.
  • Willingness to assign proceeds, operate controlled accounts, and accept collateral controls.
  • No crypto, no paper trading, no fake balances. If the deal smells wrong, we shut it down.
Documents To Prepare
  • Signed purchase orders or sales contracts with Incoterms and price basis.
  • Transport and storage plan with warehouse location or route and vessel schedule.
  • Insurance binder with loss payee and endorsements for transit and storage.
  • Twelve months bank statements, recent financials, and buyer lists with limits requested.
  • Draft wording for letters of credit or standby letters of credit if required by counterparties.

Frequently Asked Questions

Can We Fund Against Inventory Alone
Yes, if storage is controlled and the commodity is liquid and hedged. Expect tighter haircuts, frequent checks, and a hard stop if hedges slip.
Do We Need Credit Insurance
Not always. It improves pricing and approval odds. For thin names or tough corridors, a short policy on the receivable is often the make or break.
How Fast Can We Close
Clean know your customer and sanctions cleared, real trade mapped, and controls accepted, we move to terms quickly. If files are messy or counterparties are not responsive, time slips. We do not dress up timelines.

Ready To Secure Funding For Your Next Shipment

Send your contract pack, shipment plan, and target tenor. We will confirm the route, lender interest, and pricing.

Request A Term Sheet

This page is for corporate users. Nothing here is a commitment to lend. All services are subject to know your customer, anti-money laundering, sanctions, and lender approvals. We work on a best-efforts basis only and all communications with lenders are chaperoned.

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.

Express Application Submit Your Deal
Request a Proposal
Request a Proposal / Submit a Deal

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.

Submit a Request

Project Finance

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.

Submit a Request

Acquisitions

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.

Submit a Request

For Banks

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 Request

Once 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.

Still Have Questions? Schedule a Consultation

If you still have questions after visiting our FAQ and Procedure pages, we invite you to book a paid consultation for personalized guidance. A $250 USD fee applies per session.