Contract‑Backed Financing for Commodity Transactions
Contract‑Backed Financing for Global Commodity Trades
Convert Signed Purchase Agreements into Immediate Working Capital
Cash gaps shouldn’t slow a live trade. Financely structures contract‑backed financing that turns executed purchase contracts—across energy, agriculture, metals, industrial inputs, or FMCG—into advance funding within days. Our facilities align strictly with shipment schedules, Incoterms, and credit terms embedded in the deal, whether the sale is FOB Houston, CIF Shanghai, CFR Rotterdam, DAP Lagos, CPT Antwerp, FCA Santos, DES Hazira, or DDP Chicago.
Who We Serve
- Physical traders scaling volume without stretching balance sheets
- Manufacturers hedging raw‑material costs while production ramps
- EPC contractors procuring steel, piping, or refined products for projects
- Agri‑exporters aggregating seasonal harvests for government tenders
- Energy marketers delivering refined fuels, LPG, or LNG cargoes worldwide
Commodities in Scope
- Energy: Gasoline, diesel, jet A‑1, fuel oil, bitumen, LPG, LNG
- Agriculture: Wheat, corn, soy, sugar, rice, coffee, cocoa, edible oils
- Metals & Mining: Copper cathodes, aluminum ingots, iron ore, steel coils, gold dore
- Industrial & FMCG: Petrochemicals, paper pulp, fertilizers, packaged foods, consumer electronics components
How It Works
- Submit Contract & KYC – Provide the signed SPA, purchase order, or confirmed letter of intent, plus corporate documents and logistics plan.
- Underwriting & Structuring – We assess buyer credit, Incoterms, payment terms (sight, 30/60/90‑day, LC, open account), and cargo route.
- Term Sheet – Advance rate up to 90 %, margin over SOFR/EURIBOR, tenor, and security (assignment, pledge, or performance instrument) agreed in writing.
- Funding – Capital released to suppliers, freight forwarders, warehouse operators, or directly to your treasury—usually within five to ten banking days.
- Repayment – We are paid from buyer proceeds, confirmed LC reimbursement, UPAS LC maturity, or insured receivable collections.
Typical Structures We Finance
- CIF diesel cargo into West Africa backed by a transferable LC, financed at 85 % pre‑loading.
- FOB soybean shipment ex‑Brazil with payment 30 days after BL; facility bridges harvesting costs.
- DAP copper cathodes into European bonded warehouse under open account with credit‑insurance wrap.
- CFR steel coils to Asian fabricators, paid via 60‑day UPAS LC—discounted at sight.
- DDP packaged foods delivered to big‑box US retailers—receivables assigned and funded at 90 % face value.
Why Financely Beats Traditional Bank Trade Loans
| Feature | Conventional Bank Facility | Financely Contract Finance |
|---|---|---|
| Advance Rate | 50–70 % | Up to 90 % |
| Time to Cash | 4–8 weeks | 5–10 banking days |
| Covenants | Leverage, DSCR, MAC clauses | Performance undertakings only |
| Collateral | Corporate guarantees & assets | Assigned contract, LC, cargo, insurance |
| Scalability | Limited by facility cap | Grows with contract pipeline |
| Balance‑Sheet Impact | On‑balance sheet debt | Often off‑balance sheet (true sale/receivables assignment) |
Information Checklist for a Firm Quote
- Executed contract or irrevocable purchase order
- Buyer’s corporate profile and financials (or LC / SBLC details)
- Your latest management accounts or audit
- Incoterm, shipment schedule, and logistics documentation
- Insurance, inspection, or collateral arrangements (if any)
Frequently Asked Questions
Is this debt or receivables purchase?
We tailor structure—secured advance, receivables assignment, or true sale—based on jurisdiction, accounting preference, and tax guidance.
Do you finance partial shipments and drawdowns?
Yes. We release funds per bill of lading, delivery note, or milestone certificate.
What pricing should we expect?
Spread over SOFR/EURIBOR plus an arrangement fee; driven by buyer credit, tenor, commodity liquidity, and risk mitigants in place.
What if the buyer delays payment?
Facilities include grace periods. We may require credit insurance, LC confirmation, or standby support to cover extended delays.
Will our commercial margin remain confidential?
Absolutely. NDAs cover all data, and assignments or notifications can be structured without revealing pricing to counterparties.
Holding a signed commodity contract and need capital this month? Request your tailored quote now.
Request a QuoteAbout Financely
Financely arranges specialised trade‑finance and working‑capital solutions for mid‑market commodity flows worldwide. We are arrangers, not a deposit‑taking institution. All facilities are subject to due diligence, KYC, compliance, and prevailing market appetite.
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.
Submit a RequestProject 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 RequestAcquisitions
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 RequestFor 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 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.
