Iron Ore Trade Finance: Fines, Lump & Pellets

Iron Ore Trade Finance: Fines, Lump & Pellets

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.

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.