Strategic Cross-Border Commodity Finance: SBLC, DLC, UPAS & Private Debt
Strategic Cross-Border Commodity Finance: Margin Lines, Documentary Credits & Global Liquidity
Commodity traders operate on tight settlement cycles; a delayed margin top-up or an unconfirmed LC can freeze a vessel mid-voyage. Financely arranges capital for physical trades—grain, metals, energy—through a lender roster that spans ECAs, commodity banks and private credit desks. Over three decades, we have closed more than $4 billion in funding, navigating price spikes, sanction regimes and abrupt basis-risk shifts.
Margin Facilities Aligned with Volatility Profiles
Our borrowing-base lines flex daily with market value. We integrate VaR calculations and exchange margin schedules, so availability rises when positions expand and contracts roll. Pricing benchmarks below reflect current live offers:
| Commodity Class | Advance Rate | Cost (SOFR +) | Tenor |
|---|---|---|---|
| LME Copper Cathode | 80 % | 170 bps | 360 days revolving |
| ICE Brent Front-Month | 75 % | 205 bps | 180 days revolving |
| US No. 2 Corn CFR Asia | 85 % | 160 bps | 270 days revolving |
| Arabica Coffee FOB Brazil | 78 % | 195 bps | 270 days revolving |
Instrument Suite for Physical Trades
| Instrument | Typical Use-Case | Credit Enhancement |
|---|---|---|
| Documentary LC (DLC) | Spot or short-dated cargo; importer risk transfer | Bank confirmation / silent risk participation |
| Standby LC (SBLC) | Performance or payment guarantee; export pre-payment | ECA cover or credit-insurance assignment |
| UPAS Bridge Loan | Deferred payment under usance LC; exporter paid at sight | Discount with forfaiter or participating bank |
Execution Pathway
- Day 1-2 Mandate: Trade flow sheet, KYC pack, preliminary collateral matrix.
- Day 3-5 Credit Approval: Term sheet issued; margin model agreed.
- Day 6-9 Documentation: LC wording, borrowing-base deed, pledge agreements.
- Day 10-12 Funding: LC swifted / margin line activated; shipment releases.
Lender Network Coverage
- Commodity Banks: Structured desks in Geneva, Singapore, Houston.
- ECAs: Bpifrance, EKF, EDC, Atradius DUTCH to de-risk frontier-market liftings.
- Private Credit Funds: Metals and energy pockets for high-advance, mezzanine layers.
- Multilateral DFIs: Afreximbank, IFC for strategic import programs.
Why Financely Earns the Mandate
- Single counterparty for margin, DLC/SBLC issuance and receivables discounting—no breakpoints in funding coverage.
- Credit analytics delivered at dawn local-time—treasury sees headroom before desks open.
- Term sheets negotiated by former trade-bankers with decision rights—cuts approval cycles in half.
- Lenders pre-agreed on variation-margin mechanics—no fire drills when volatility spikes.
If you require immediate liquidity or confirmed payment instruments for an upcoming cargo, speak with our commodity finance desk today.
Contact UsGet 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.
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.
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