Private Credit And Bank Funding For Structured Commodity Trades

Private Credit And Bank Funding For Structured Commodity Trades

Private Credit And Bank Funding For Structured Commodity Trades

We arrange capital for commodity flows from contract to cash. The mandate is direct. Put in place bankable instruments and reliable liquidity, price them against real appetite, and close cleanly. We design and place borrowing base facilities, pre-export and prepayment structures, receivables and inventory lines, repo and tolling routes, confirmed documentary letters of credit with discounting, standby undertakings, and working capital lines across banks and private credit. Files are drafted to market standards, rule sets are respected, and controls are practical for operators.
Who We Serve
Producers, traders, refiners, processors, and distributors across metals and minerals, energy products, agri softs, and fertilizers.
Corridors
Organisation for Economic Co-operation and Development routes and frontier markets with workable custody, inspection, and sanctions screening.
Standards
Uniform Customs and Practice for Documentary Credits Publication Number 600, International Standby Practices Publication Number 98, Uniform Rules for Demand Guarantees Publication Number 758, and clear Society for Worldwide Interbank Financial Telecommunication message maps.

What We Arrange Across Banks And Private Credit

Bank Products And Issuance
  • Documentary Letter of Credit under Uniform Customs and Practice for Documentary Credits Publication Number 600 including sight, usance, and Usance Payable At Sight with discount at sight. Confirmation placed where issuer or country risk requires.
  • Standby Letter of Credit under International Standby Practices Publication Number 98 for advance payment refund, performance, or payment support.
  • Demand guarantees under Uniform Rules for Demand Guarantees Publication Number 758 including bid, performance, advance payment, and retention. Direct or indirect issuance with local fronting against counter-guarantee.
  • Borrowing base revolving facilities across receivables and inventory with collateral management agreements and inspection rights.
  • Revolving credit facilities sized to working capital cycles with practical reporting and covenant tests.
Private Credit And Structured Funding
  • Pre-export finance backed by offtake and export proceeds with assignment and collection control.
  • Prepayment agreements with offtakers where the price formula and delivery profile are bankable.
  • Receivables purchase, factoring, and forfaiting of bank-avalised paper or Letter of Credit-backed receivables.
  • Inventory and repo structures with title transfer, tri-party custody, and step-in rights.
  • Tolling-linked advances tied to feedstock and output under named custody and inspection.
  • Program debt for scale through Medium-Term Notes and private placements for working capital pools when suitable investors exist.

Structure Menu And Where Each One Fits

Structure Use Case Key Controls
Confirmed Documentary Letter of Credit with discount at sight Cash at shipment for seller and tenor for buyer in higher risk corridors Clear goods description, Incoterms, latest shipment, presentation period, advising and confirmation, Society for Worldwide Interbank Financial Telecommunication issuance and reimbursement (message type 700 or message type 710, message type 740, message type 742)
Pre-export finance Fund production and logistics against contracted offtake Assignment of proceeds, controlled accounts, hedging, collateral package, inspection rights, stop-fund triggers
Borrowing base on receivables and stock Program liquidity for rolling shipments and storage Eligibility rules, advance rates, haircuts by commodity and location, collateral management agreements, audits, and reserves
Repo and inventory title structures Monetise stock in storage or in transit Title transfer, warehouse control, inspection, insurance, and delivery-out conditions
Receivables purchase or forfaiting Immediate cash and risk transfer on LC-backed or avalised paper True sale, assignment, notice to debtor, policy assignment if insured
Standby Letter of Credit or advance payment guarantee Replace cash deposits; secure refund or performance Precise draw statement, expiry, presentation place, governing law, and forum

Control Framework That Credit Committees Accept

Custody And Inspection
  • Tri-party collateral management at approved warehouses with named operator.
  • Warehouse receipts or electronic warrants where available.
  • Loadport and discharge surveys and quality certificates by recognised inspectors.
Assignment And Cash Control
  • Assignment of receivables and offtake proceeds with notice to buyers.
  • Controlled or pledged collection accounts with waterfall and reserve logic.
  • Eligibility tests, concentration caps, aging tests, and dilution reserves.
Market And Currency Risk
  • Hedge policy with forwards or options matched to shipment and receivable maturity.
  • Price collar or fixed-price coverage for exposed positions where needed.
  • Stop-fund triggers tied to basis risk, margin calls, or covenant breaches.

Our Role, Chaperoned Engagement, And Distribution

We are the arranger and transaction lead. Engagement with banks, funds, insurers, and export credit agencies is chaperoned so all parties can work with us through credit, documentation, and closing. We build one file, run one process, and stay in the room through issuance or first draw.

  1. Intake And Proof Of Trade. Contract or offtake, Incoterms, logistics, and insurance. If the flow is not real or the custody chain is not credible, we close the file.
  2. Structure. Decide between bank issuance, private credit, or a combination. Set draw mechanics, reimbursement path, assignment, pledges, and inspection rights.
  3. Drafting. Wording for Uniform Customs and Practice for Documentary Credits Publication Number 600 credits, International Standby Practices Publication Number 98 standbys, and Uniform Rules for Demand Guarantees Publication Number 758 guarantees. Society for Worldwide Interbank Financial Telecommunication message map for issuance, amendments, and reimbursement (message type 700 or message type 710, message type 760, message type 767, message type 740, message type 742, and status via message type 799 where it adds clarity).
  4. Underwriting Pack. Cash flow model, borrowing base template, shipping calendar, collateral narrative, sanctions and know-your-customer outputs, and a concise data room that a credit officer can read.
  5. Distribution. Targeted approach to confirming banks, trade desks, private credit funds, forfaiters, insurers, and export credit agencies. Program debt with Medium-Term Notes or private placements when scale and investor demand exist.
  6. Term Sheets And Closing. Comparable proposals for clean files, negotiated spreads and fees, conditions precedent and account control, issuance or availability, and monitoring to first presentation or draw.

Pricing Levers And Economics That Matter

  • Counterparty and corridor risk, tenor, currency, and complexity of the document set drive spreads and confirmation fees.
  • For borrowing bases and inventory lines, advance rates, haircuts, audit costs, inspection costs, and reserves matter as much as the headline rate.
  • Insurance support through trade credit or political risk can expand lender appetite and improve pricing when drafted for assignment and claims.
  • Clear Society for Worldwide Interbank Financial Telecommunication charges, advising fees, and platform fees avoid later disputes.

Scenario Playbook For Structured Commodity Trades

  1. Metals trader with storage across two hubs. Borrowing base over receivables and warrants, tri-party collateral management, inspection rights, and currency hedges. Add confirmed documentary credits for key offtakers to anchor discounting.
  2. Agri exporter during harvest peak. Pre-export finance backed by offtake, assignment of proceeds, hedged price risk, and warehouse control. Standby letter for advance payment refund to replace supplier deposit requests.
  3. Energy products in transit. Repo structure with title transfer on bill of lading, delivery-out conditions at discharge, insurance endorsements in favour of the lender, and a revolving availability formula.
  4. Frontier corridor with new buyer. Confirmed documentary credit, discount at sight, and political risk insurance. Move to insured open account only after performance history is established.
  5. Program needs exceed bank limits. Private credit club line for inventory and receivables, or program notes to qualified investors with an insurance wrap if this widens demand.

Eligibility And Documents To Begin

Eligibility
  • Verifiable contracts or offtake with workable shipment plan.
  • Directors and beneficial owners available for sanctions and know-your-customer checks.
  • Willingness to assign proceeds, operate controlled accounts, and accept custody, inspection, and reporting.
  • Compliance with law and sanctions. No paper trading and no crypto assets.
Documents
  • Contract pack with Incoterms, specifications, shipment calendar, and price formula.
  • Warehouse or storage agreements, collateral management agreements, and insurance binder with loss payee endorsements.
  • Twelve months of bank statements, recent financial statements, and buyer list with requested limits and payment terms.
  • Any beneficiary templates for credits or guarantees, or we draft wording under the relevant rule set.

Frequently Asked Questions

How do you decide between bank funding and private credit
We map the need for issuance, custody, and scale. Banks are effective for documentary credits, standbys, and confirmed flows. Private credit is suited to inventory and repo, pre-export advances, and program lines when speed and structuring flexibility matter. Many mandates combine both.
Can inventory lines sit beside confirmed letters of credit
Yes. Confirmed credits can anchor receivable discounting while inventory is funded under a borrowing base or repo. Segregation, reporting, and stop-fund triggers prevent overlap and leakage.
What makes a custody chain acceptable
Approved warehouse or terminal, named operator with liability regime, periodic inspection, insurance endorsements to lenders, and proof of title or control that stands up at delivery.
Where does trade credit insurance fit
Policies can back open account receivables, support discounting, and improve approval odds. Terms are drafted for assignment and claims. Political risk cover is added where transfer and sovereign risks are material.

Request Private Credit And Bank Funding For Your Commodity Trades

Send the contract or offtake pack, the shipment plan, storage set-up, and target dates. We will return with the structure, the bank and fund route, and execution to issuance or first draw.

Start Structured Commodity Finance

This page addresses corporate users. Nothing here is a commitment to lend, insure, or invest. All services are subject to know-your-customer checks, anti-money-laundering controls, sanctions compliance, and approvals by banks, funds, insurers, and, where relevant, export credit agencies. We work on a best-efforts basis and all lender communications are chaperoned.

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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.

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