Iron Ore Trade Finance: Fines, Lump & Pellets
We arrange committed trade finance for iron ore flows—fines, lump, pellets, and concentrate. Execution is grounded in controls lenders require: enforceable title, assays with umpire rights, TML/moisture management, collateral managers, and LC wording that stands up in settlement. We mandate on a paid basis only, through a formal engagement. Any securities-related steps are chaperoned.
Service snapshot:
minimum facility $30M
• typical range $30M–$250M
• retainer $62,500
(non-refundable) • success 1.25–2.0%
on committed capacity/funded amount • timeline 30–90 days
from complete data and counterparties under NDA
Mandate Scope
Products financed
Fines (58–65% Fe), lump, pellets, concentrate; blending and beneficiation flows included.
Structure set
Pre-export (PXF), LC issuance & confirmation/discount, receivables purchase, inventory/borrowing base against WRs, SBLC-backed terms.
Counterparties
Commodity banks, merchant/trading desks, private credit, and capacity enhanced by credit insurance where appropriate.
Controls
Collateral manager, sampling/assay protocol (with umpire lab), TML/moisture controls, inspection, warehouse receipts, hedging linkage (SGX 62% Fe swaps), KYC/AML.
Common Roadblocks vs Our Execution
Roadblocks
- Unclear title and weak control over goods/documents/cash on FOB/CFR deliveries.
- Assay disputes (Fe%, SiO 2
/Al 2
O 3
, P, S) and moisture/TML overruns affecting payable metal.
- Unhedged price/basis risk vs index; no back-to-back offtake.
- Credit packs missing sanctions/KYC, trade history, and verifiable WR enforceability.
What we execute
- Bank-ready chain: title documents, pledged accounts, WRs, collateral manager appointment.
- Sampling/assay protocol with nominated labs (e.g., SGS/Cotecna/Alex Stewart) and umpire rights; moisture/TML controls baked into CPs.
- Hedging policy tied to Fastmarkets/TSI 62% Fe via SGX swaps; documented back-to-back offtake or risk-sharing.
- Complete credit pack: KYC/AML, sanctions, licenses, trade history, logistics, and insurance.
How We Get You Funded
| Workstream |
What we deliver |
Why lenders approve |
| Counterparty grid
|
Target list of banks, traders, and private credit matched to your route, INCOTERMS, and buyer set. |
Capital aligned to flow profile; no generic blasts. |
| Data & QA pack
|
Assays, sampling SOPs, moisture/TML records, WR templates, logistics chain, insurance, hedging policy, counterparty KYC. |
Answers credit questions up front; fewer diligence loops. |
| Structure & documents
|
PXF, LC issuance/confirmation/discount, receivables purchase, inventory borrowing base; CPs and covenants tailored to cargo/route. |
Clear recourse and enforceable mechanics reduce loss severity. |
| Control stack
|
Collateral manager, inspection cadence, LC wording (UCP600/URC522), account control, vessel/laytime standards, demurrage rules. |
Risk managed at goods, documents, and cash touchpoints. |
| Syndication & close
|
IOIs and term sheets, CP checklist, settlement calendar, and post-close reporting cadence. |
Predictable execution and repeatable capacity. |
Structure Menu & Use Cases
| Pre-Export (PXF)
|
Advance against contracted offtake; linked to mine production and shipment calendar with hedging. |
| LC Issuance & Confirmation/Discount
|
Issuing bank paper confirmed and discounted at presentation; vessel/cargo standards embedded. |
| Inventory / Borrowing Base
|
Revolver against WRs with assays, moisture/TML controls, and concentration limits by grade/location. |
| Receivables Purchase
|
True sale/discount of eligible AR; recourse based on buyer quality and jurisdiction. |
| Blending & Transshipment Finance
|
Funding during blending/transshipment with control of output specs and hedged exposure. |
Execution Process
1) Intake
Confirm routes, grades/specs, assay history, counterparties, hedging, and insurance. NDA and KYC opened.
2) Controls
Collateral manager shortlist; inspection and sampling SOP; LC wording; account control; vessel and laytime standards.
3) Term sheets
Issue calibrated term sheets to lenders/merchants with CPs and control stack embedded.
4) Closing
Docs and CPs cleared; accounts/WRs tested; settlement calendar agreed; first draw.
Illustrative Timeline (30–90 Days)
Day 1
Kickoff; NDA/KYC; data and control checklist issued
Day 7
Collateral manager RFP; assay/inspection protocol agreed; draft LC wording
Day 21
Term sheets received; control stack locked; CP list finalized
Day 45
Docs near-final; accounts and WRs tested; settlement calendar set
Day 60–90
Signing and first draw; reporting cadence live
Fees, Minimums, & Terms
| Item |
Terms |
Notes |
| Minimum facility
|
$30,000,000+ |
Aggregation of routes/grades is workable; pricing may adjust. |
| Retainer
|
$62,500 (non-refundable) |
Required before lender process, control stack, and documentation begin. |
| Success fee
|
1.25–2.0% of committed capacity or first funded amount |
Tiered by size, complexity, and syndication mix. |
| Third-party costs
|
Collateral manager, inspection/assays, counsel, LC/confirm fees |
Paid by client within agreed caps; disclosed before commitment. |
Team & Capability
Deal operators
Operators drawn from commodity banks, merchants, inspection houses, and collateral-management firms. Track record spans origination, control, and close.
Chaperoned activity
Any securities-related steps are conducted through a licensed chaperone (Member FINRA/SIPC).
Execution focus
Real goods, enforceable documents, and verified cash flows. No “platform” claims or leased-instrument schemes.
Iron ore moves when controls are clear and enforceable. We put those controls in place—assays, TML/moisture management, WRs, collateral manager, LC wording, and a reporting cadence that credit committees trust.
Request Your Term Sheet
Share routes, specs (Fe%, SiO 2
/Al 2
O 3
, P, S), moisture/TML data, counterparties, and control preferences (WRs, assays, collateral manager). We will return structures, CPs, and a settlement calendar.
Start The Process
Financely is a placement and advisory firm. We act on paid mandates only. All engagements require KYC/AML and sanctions screening. Any securities-related activities, where applicable, are conducted through a licensed chaperone, Member FINRA/SIPC. We do not trade physical commodities; we arrange finance against verifiable goods, documents, and cash flows. This page is informational and not an offer or solicitation.