| Step | What Happens | Outcome on Fake Deal |
|---|---|---|
| Warehouse Call | Verify receipt & lot number | “Receipt number not in our system.” |
| Inspection Mandate | Book SGS, Bureau Veritas, Intertek, Cotecna, CCIC or ALS | Borrower stalls, claims “security protocols.” |
| Title Review | Confirm document is negotiable and endorsable | SKR has no endorsement box, no watermark. |
| Market Check | Compare grade vs. transparent spot price | No trade history, no buyer list, zero liquidity. |
| Legal Wrap | Draft GMRA with margining terms | Borrower disappears—deal over. |
Ultrafine Copper Powder & Nickel Wire SKR Scams: How Fake Receipts Sink Asset-Based Loans
Ultrafine Copper Powder & Nickel Wire SKR Scams: How Fake Receipts Sink Asset-Based Loans
Our arranger desk hunts for real cargo every day: place it in a bonded shed, wrap it in a GMRA, raise cash, collect fees—easy. Yet the inbox is crammed with brokers peddling Safe-Keeping Receipts for “ultrafine copper powder” or “aerospace nickel wire” that never saw daylight. They swear the paperwork is spotless, demand eight-figure repo lines, then act shocked when the deal dies at the first warehouse call. Why does this circus keep rolling? Because someone still believes a PDF stamped “SKR” beats a phone-verified warehouse warrant. Spoiler: it doesn’t.
1. Same Movie, Different Props
- Ultrafine Copper Powder — claimed to sit in drums worth hundreds of millions. No bonded storage, no independent assay.
- Nickel Wire Coils — supposedly locked in a Swiss vault, complete with glamour photos. Warehouse says, “Never heard of it.”
- Brokers chasing mandate fees ignore the red flags, forward the SKR, and hope the lender won’t kick the tires.
2. What an SKR Can’t Do
A genuine warehouse receipt transfers control ; the lender can walk in and seize the metal tomorrow morning. An SKR only says, “We believe we hold something for someone.” Easy to draft, easier to forge. No unique lot numbers, no endorsement chain, no legal bite.
3. Lender Playbook: Thirty Minutes to “No”
Standard Repo Underwriting Checks
4. Reality: ABL Works — When the Metal Exists
A real transaction is boring in the best way. Copper powder drums or nickel coils sit in a customs-bonded shed. SGS punches samples, issues a clean report. Warehouse endorses the warrant to the lender. We arrange a repo at, say, 75 % LTV, book a structuring fee, and everyone gets paid. Try the same dance with phantom cargo and you burn time, legal budget, and goodwill. No surprise credit desks slam the door after the first whiff of forgery.
5. Quick Sanity Checklist for Brokers & Borrowers
- Is the receipt a warehouse warrant —not an SKR—endorsable to the lender?
- Can a top-tier inspector access the lot within 48 hours?
- Does the warehouse appear on any customs-bonded or LME list?
- Are lot IDs, weights, and assays traceable and recent?
- Will the borrower post variation margin when prices move?
6. Final Word
Trying to pawn off a forged SKR isn’t creative financing—it’s fraud. Bring bona fide metal, and we’ll unlock liquidity fast. Bring a fantasy PDF, and the only thing you’ll raise is everyone’s blood pressure.
Holding real
metal in bonded storage?
Our repo desk funds USD 3 m – 250 m
tickets—once the title checks out.
Disclaimer: This article is for information purposes only and does not constitute an offer or commitment to lend. Financely extends credit after full due diligence, KYC/AML clearance, and credit-committee approval.
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