Metals Trade Finance Advisory

Metals trading is simple on paper and brutal in cash terms. You pay suppliers early, you carry inventory, you ship across borders, and you get paid later. Add quality adjustments, LME pricing moves, sanctions exposure, and buyer concentration, and your liquidity can vanish fast.

Financely advises metals traders, processors, and distributors on structuring bankable trade finance facilities. We underwrite the transaction, align documentation, design collateral controls, and place solutions through regulated banks and professional credit investors.

Financely is not a bank and does not lend or issue Letters of Credit. We act as a private debt advisory and structuring firm. Documentary Letters of Credit are issued under UCP 600. Standby Letters of Credit are typically issued under ISP98. All outcomes are subject to eligibility, KYC and AML, sanctions screening, credit approvals, and definitive agreements.

Who This Is For

  • Metals traders buying and selling copper cathodes, aluminum, steel, nickel, tin, zinc, and related products.
  • Concentrates and semi-finished players requiring structured prepayment, offtake-backed funding, or controlled settlement.
  • Stockists and distributors with recurring import flows and a need for revolving liquidity.
  • Processors that carry feedstock and WIP inventory and need working capital tied to purchase and sales contracts.

What We Advise On

Letters Of Credit And Bank Instruments

DLC structures for imports and exports under UCP 600. Confirmation where counterparty or country risk requires it. Standby structures under ISP98 when the objective is performance support, payment backstop, or credit enhancement.

  • LC and SBLC wording review against the contract and logistics plan.
  • Document preparation aligned to presentation requirements and inspection rules.
  • Reimbursement and settlement instructions documented cleanly.

Borrowing Base And Revolving Credit Facilities

Revolving liquidity sized to receivables and inventory, with defined eligibility criteria, concentration limits, reserves, and reporting cadence. Suitable for repeatable flows with credible counterparties and clean data.

  • AR eligibility and dilution reserves.
  • Inventory eligibility by product, location, and control method.
  • Cash waterfall and controlled collection accounts.

Inventory Finance And Warehouse Receipt Structures

Funding against controlled inventory where title, storage, insurance, and release mechanics are enforceable. Structures typically require independent collateral management and lender control over releases.

  • Collateral manager and warehouse operator coordination.
  • Insurance requirements and loss payee alignment.
  • Release triggers tied to payment, hedging, and documentation.

Prepayment, Pre-Export, And Offtake-Backed Funding

Where the trade is anchored by credible offtake and execution capacity, we structure facilities that fund procurement and shipment in a controlled sequence with clear uses of proceeds and repayment sources.

  • Contract-based repayment mechanics and assignment of proceeds.
  • Inspection, assay, and quality adjustment frameworks.
  • Risk allocation across supplier, trader, and buyer.

Core Risk Controls We Build Into Metals Structures

Counterparty And Compliance Controls

Metals flows can touch higher-risk jurisdictions and complex ownership structures. We align KYC and sanctions screening requirements early so issuers and lenders are not surprised late in the process.

  • Beneficial ownership and corporate structure clarity.
  • Sanctions screening on counterparties, vessels, ports, and banks.
  • Trade-based money laundering risk flags addressed upfront.

Logistics, Title, And Release Mechanics

If title and control are unclear, financing is fragile. We design document flows that match Incoterms, inspection, and release conditions so lenders can rely on the paper trail.

  • Bill of lading and release rules tied to funds flow.
  • Storage control and release approvals when inventory is financed.
  • Clear roles for agent, trustee, collateral manager, and servicer.

Price Risk And Hedging Alignment

Lenders care about mark-to-market exposure. Where appropriate, we align hedging policy, margining, and reporting with facility requirements to avoid silent risk build-up.

  • Hedge policy aligned to tenor, basis risk, and liquidity needs.
  • Margin reserve design for volatile products and routes.
  • Reporting that supports ongoing credit decisions.

Data Room And Decision Grade Underwriting

Metals deals get delayed when the file is not decision grade. We build an issuer and lender-ready pack that matches how credit teams actually underwrite, not how brokers describe deals.

  • Trade flow summary, contracts, and performance history.
  • Financials, aging schedules, and working capital model.
  • Collateral mapping, controls, and a clean sources and uses schedule.

How The Engagement Runs

1) Triage And Feasibility

We confirm whether the transaction can be underwritten, whether counterparties are verifiable, and what structure is realistic given the product, route, and requested tenor.

2) Structuring And Term Sheet Architecture

We design the facility, control package, reporting cadence, and conditions precedent. This step includes LC and SBLC wording alignment where instruments are required.

3) Placement And Indications

We approach a targeted panel of banks and credit investors and collect indications on a comparable basis, including pricing, covenants, reserves, and operational requirements.

4) Documentation And Closing Support

We coordinate questions and revisions through to definitive documents, controlled account setup, and operational go-live so the facility can actually run without daily friction.

Typical Outcomes

  • Cleaner issuance: LC and SBLC drafts that pass bank policy and match the commercial contract.
  • Repeatable liquidity: revolving structures tied to real trade flows with measurable controls.
  • Lower friction: fewer document rejections, fewer late compliance surprises, fewer stalled shipments.
  • Better leverage discipline: realistic advance rates supported by inventory control and reporting.

FAQ

Do you fund metals trades directly?

No. Financely is an advisory firm. We underwrite and structure the transaction and then place solutions through regulated banks and professional credit investors.

Can you issue an LC or SBLC?

No. LCs are issued by banks under their own policies and documentation. We support structuring, underwriting, wording, and issuer placement. Documentary LCs are typically issued under UCP 600. Standby LCs are typically issued under ISP98.

What do lenders usually require for metals facilities?

Verifiable counterparties, clean contracts, a coherent logistics plan, insurance alignment, and enforceable collateral controls. For borrowing base structures, they also require consistent reporting, eligibility criteria, and controlled cash collections.

Can you arrange margin funding if a bank requires cash collateral?

Where the transaction is bankable and the controls are clear, we can approach private credit and equity investors to fund required cash margin or support structures. Any such funding is subject to investor approvals and definitive agreements.

What makes a metals trade “not financeable”?

Unverifiable buyers or suppliers, unclear title and control, inconsistent documents, non-compliant insurance, unrealistic pricing assumptions, and routes or counterparties that fail sanctions or compliance screening.

Request A Quote

If you have an active metals trade flow and need LC or SBLC structuring, borrowing base liquidity, or inventory finance with controlled settlement, send your trade summary, counterparties, contracts, and requested limits through our contact form.

Request A Quote

Disclaimer: This page is for general information only. It does not constitute legal, tax, regulatory, investment, or credit advice and it is not an offer or commitment by Financely or any third party to provide any financing, LC, SBLC, guarantee, or other instrument. Financely is not a bank, lender, insurer, surety, broker-dealer, or investment adviser. Any instrument or facility is issued or provided solely by regulated counterparties under their own licenses, approvals, policies, and documentation. All transactions are subject to eligibility, KYC and AML review, sanctions screening, credit approval, and execution of definitive agreements.