Earn Monthly Returns from Commodity-Linked Private Placements

1. Yield Backed By Real-World Trade Flows

Looking for current income that is not tied to frothy tech multiples or broad equity swings? Commodity-linked private placements aim to pay monthly cash distributions sourced from short-tenor, self-liquidating trade finance exposure: pre export advances, export receivables, collateralized inventory, or confirmed letter of credit discounting. These are working capital engines that power global shipments of grains, metals, fuels, and soft commodities. When structured with proper collateral control, investors can tap yield from the spread between trade borrowers' funding needs and the cost of capital in developed markets. No fairy dust. Just cargo moving, paper matching, cash cycling.

2. How Cash Actually Gets To You

Under a commodity-linked note program, investor capital funds an SPV or trust that advances money into short-duration trade finance deals. Borrowers pay interest and fees as cargo moves from origin to offtaker. Collections sweep back to the SPV. After expenses, hedging, and reserves, distributable cash is paid out to investors each month. Principal typically amortizes as trades settle, then recycles into new deals during the reinvestment window if the governing documents allow. Missed borrower payments or collateral shortfalls reduce or delay distributions, so credit selection and control matter.

3. Where Financely Fits In

We act as arranger. Our role is to source, diligence, and package underlying trade exposures that fit agreed risk limits, then organise issuance of private placement notes or fund interests offered to qualified investors under Reg C (or the comparable private offering path in your jurisdiction). We review trade docs, collateral managers, borrower credit files, sanctions exposure, and hedging coverage. We set reporting templates so you see position, tenor buckets, and payment status. If you greenlight a raise, we coordinate legal counsel, trustees, administrators, and distribution partners.

4. Collateral & Control Features Investors Should Demand

• Title & Control Evidence- Negotiable warehouse receipts, trust receipts, or pledge agreements recorded against inventory in controlled sites.
• Documentary Integrity- Match between sales contracts, bills of lading, invoices, inspection certs, and insurance policies.
• Advance Rate Discipline- Haircuts vs live market prices; margin calls if prices fall below triggers.
• Counterparty Concentration Caps- Position limits per borrower, per offtaker, per jurisdiction.
• Currency & Hedge Procedures- FX hedges where funding and settlement currencies differ; commodity hedges when price exposure is not naturally covered.
• Independent Collateral Manager- Field warehouse or collateral control agent that reports daily or weekly stock positions.
• Waterfall Transparency- Clear priority of payments: trustee fees, hedging, servicing, reserves, investor coupon, performance carry.

5. Monthly Distribution Mechanics

Interest accrues daily on underlying trade receivables or advances. Collections and interest spreads are swept to the issuer account. On a set cut-off date each month the administrator tallies cash received, deducts expenses and reserves, and wires investor distributions. If a borrower defaults, cash is trapped in reserves while collateral is liquidated. That may cut or suspend the monthly payment until recoveries post. Many investors prefer diversified pools of short trades so cash keeps rotating and smoothing the distribution line.

6. Indicative Yield & Fee Stack

Numbers below are directional only. Actual pricing depends on commodity type, tenor, borrower quality, jurisdiction, hedging cost, and leverage. Yields shown are annual targets before tax. Distributions paid monthly; accruals may vary.

Series	Target Net Annual Yield	Underlying Exposure	Expected Monthly Cash Rate	Illustrative Tenor
Series S (Short Cycle)	7% to 9%	Confirmed export receivables & LC discounting in OECD banks	~0.60% to 0.75% paid monthly (variable)	3 to 9 month trade rotations
Series C (Collateralized Inventory)	9% to 12%	Field-warehouse metals, agri stocks, energy products with monitored drawdowns	~0.75% to 1.00% paid monthly (variable)	6 to 18 month revolving
Series P (Pre Export & Offtake Linked)	12% to 15%	Pre export finance secured by offtake contracts, production hedges, or credit-wrapped buyers	~1.00% to 1.25% paid monthly (variable)	9 to 24 month amortizing

Fee Drivers

• Arranger fee to Financely at first close: often 1% to 3% of committed capital, scaled by size and complexity.
• Ongoing servicing / admin: 25 to 75 basis points annually across trust, reporting, audit, and collateral monitoring.
• Performance carry (where agreed): paid only after target hurdle returned to investors.
• Borrower-side interest spread: the raw engine that feeds investor yield once expenses clear.

7. Investor Eligibility & Minimums (Reg C Path)

These offerings are intended for qualified investors who meet the standards under Reg C or the applicable private placement exemption in their jurisdiction. Suitability review is mandatory. Minimum subscription sizes vary by series; current working range is USD 250,000 to start, with scale breaks for larger tickets or feeder vehicles. Aggregated commitments through family offices or advisory platforms can be grouped.

8. Engagement Steps To Review A Deal

• Interest Indication- You register interest and confirm eligibility.
• NDA & Data Room Access- Secure portal opens with deck, term sheet, and underlying trade pool summary.
• Diligence Window- Review collateral reports, borrower concentration, historical performance, stress cases.
• Allocation Request- Submit ticket size and series preference.
• Subscription Pack- Complete docs, KYC, source-of-funds. Wire to escrow or trustee account.
• Closing & Inception Date- Capital deployed into ramped trade positions or draw schedule.
• Monthly Statements- Position, cash receipts, defaults (if any), NAV marks where applicable.

9. Key Risks You Must Price

• Counterparty Default- Borrower or offtaker fails; recovery depends on collateral quality and legal enforceability.
• Collateral Fraud / Dilution- Duplicate warehouse receipts or over-pledged cargo. Control agents reduce but do not erase risk.
• Commodity Price Shock- Falling prices can erode collateral coverage and trigger margin calls or forced sales.
• Political & Transfer Risk- Export bans, currency controls, or conflict can freeze shipments and cash flows.
• Document Discrepancies- Banks reject LCs; draws delayed; working capital jams up.
• FX Mismatch- Income in one currency, obligations in another. Hedging slippage hits yield.
• Liquidity- Secondary trading thin or absent. You may be locked until maturity or a scheduled liquidity window.
• Regulatory Change- Sanctions, export controls, or securities rules can alter performance or investor eligibility mid-stream.

10. Quick FAQ

Are returns fixed?

No. Coupons are target levels based on expected spreads from underlying trade finance positions. Distributions can move up or down and may be suspended if collateral events occur.

Is principal protected?

No guarantee. Collateral support and structural features aim to reduce loss severity but capital is at risk.

Can I reinvest monthly cash?

Yes if the governing docs allow an automatic reinvest election during the reinvestment period. Otherwise cash pays out.

What reporting do I get?

Monthly position and cash report, quarterly performance call, annual audited financials for the issuing vehicle when scale justifies.

Will Financely manage the assets?

We arrange and oversee reporting frameworks. Day-to-day collateral tracking and servicing sit with appointed specialists (administrator, collateral manager, trustee) named in the documents.

Financely Group arranges private placement opportunities linked to trade and commodity finance exposures. We are not a bank and do not take deposits. Securities described here are offered only in private transactions to qualified investors under Reg C or another applicable exemption; they are not offered to the public and are not available in all jurisdictions. This page is marketing material. It is not an offer, solicitation, recommendation, or advice to buy or sell securities. Offers are made solely through definitive confidential offering documents (PPM, subscription agreement, risk factors) that you must read in full. Target yields are illustrative and not guaranteed. Capital is at risk, including possible loss of principal. Distributions may vary or stop. Commodity, credit, collateral, political, FX, and regulatory risks apply. Past performance does not predict future results. Engagements require executed terms, KYC, sanctions screening, and acceptance of subscription limits. Misrepresentation or withheld information can trigger termination and reporting under AML and CTF rules.