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 Quote
About 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.