Commodity Contract Financing

Fund real commodity contracts across soft commodities, petroleum products, and metals. We structure and coordinate financing for purchase, transport, storage, and settlement of physical flows using disciplined collateral controls, bankable documents, and clear proceeds routing.

We support buyers, traders, and suppliers that need capital to execute signed commodity contracts. Financing can be structured as prepayment finance, purchase order finance, Letters of Credit including usance or UPAS, SBLC support where required, inventory and warehouse finance, receivables finance, or borrowing base revolving facilities when there is repeat flow. Outcome is a financeable contract file that moves product from supplier to buyer with controlled risk and predictable settlement.

Scope of Services

Structuring

  • Contract mapping: buyer, seller, intermediaries, Incoterms, delivery points, and payment terms
  • Structure selection across all options: prepay, LC, SBLC support, PO finance, inventory, receivables, or borrowing base
  • Advance rate and reserve logic tied to controls, inspection, and counterparty risk
  • Tenor design aligned to shipment time, title transfer, inspection, and collection cycle

Collateral and Controls

  • Title and document control plan: bills of lading, warehouse receipts, or equivalent title evidence
  • Storage and release mechanics: warehouse operator, collateral manager, and release triggers
  • Insurance and inspection alignment, including coverage scope and claims workflow
  • Proceeds control: lockbox, blocked account routing, and controlled settlement waterfall

Documentation

  • Trade document package engineering: invoice, packing, inspection, quality, and origin documents
  • Contract clean-up to remove unfinanceable clauses and tighten performance definitions
  • Rule sets where relevant: UCP600 for LCs, ISP98 for SBLCs, and URC522 for collections
  • KYC, sanctions checks, and ownership transparency for all material parties

Execution

  • Placement with bank and partner desks based on commodity, route, and controls
  • Closing coordination: diligence, legal docs, control agreements, and operational readiness
  • Draw workflow and monitoring through shipment and settlement
  • Repeat transaction program setup for ongoing flows and seasonal peaks

Financing Options

  • Prepayment financing against signed purchase contracts with controlled release conditions
  • Purchase order finance where the constraint is supplier prepayment and confirmed orders
  • Letters of Credit, including usance and UPAS structures, to control shipment and payment
  • SBLC support where a counterparty requires standby credit support within the structure
  • Inventory and warehouse financing where storage, insurance, and release controls are bankable
  • Receivables financing against delivered and accepted goods with verified obligors
  • Borrowing base revolving working capital facilities for repeat flows across AR and eligible inventory

Structures We Coordinate

  • Back-to-back contract financing where purchase and sale legs are matched and controlled
  • Inventory release models tied to inspection, title evidence, and proceeds routing
  • LC-backed settlement flows with clean document conditions and predictable timelines
  • Receivables structures with controlled collections and concentration limits
  • Repeat shipment programs with standardized documentation and reporting cadence
  • Amendments, increases, reductions, and substitutions coordinated without disrupting flows

Typical Coverage

Commodity Profiles

  • Soft commodities with established grading, inspection, and warehousing standards
  • Petroleum products where logistics, storage, and compliance checks are clear
  • Metals and concentrates where inspection, title chain, and proceeds routing can be controlled
  • Industrial inputs with repeat buyers and consistent shipment documentation

What Makes a File Financeable

  • Signed contracts with clear delivery points, acceptance rules, and dispute windows
  • Verifiable counterparties, acceptable jurisdictions, and clean KYC
  • Controls over title evidence and settlement accounts
  • Operational plan that matches the paper, including inspection and insurance

Eligibility and Dossier

Minimums

  • Transaction size typically from USD 1,000,000, smaller reviewed case by case
  • Clear contract chain and control mechanics that can be executed in practice
  • Transparent KYC for all material parties and acceptable jurisdictions
  • Defined logistics plan, inspection path, and settlement timetable

Core Dossier

  • Purchase contract and sale contract, if back-to-back
  • Counterparty details: buyer, seller, broker chain, and beneficial ownership
  • Goods specification, Incoterms, ports, storage locations, and shipment schedule
  • Draft document pack: invoice, packing, inspection, quality, and origin requirements
  • Applicant financials, bank statements, and existing debt and liens
  • Insurance confirmations and any storage or collateral management proposals

Process

Intake

Mandate signed, KYC received, and contracts uploaded. We confirm commodity profile, route, controls, and the exact funding requirement and deadline.

Structuring

We select the right structure from the full set of options and engineer the control package so the file is financeable and operationally realistic.

Terming

We issue indicative terms covering advance rates, reserves, pricing, covenants, controls, and diligence steps, with a clear closing path.

Closing

Diligence completed, legal docs executed, and control agreements activated. Funding proceeds once conditions are satisfied and operational steps are ready.

Shipment and Settlement

Draws, releases, inspections, and collections are monitored through completion. We track performance and coordinate amendments or repeat transactions where relevant.

Pricing Guidance

  • Pricing depends on commodity, route, counterparty risk, and control strength
  • Structure choice affects diligence depth and third-party costs
  • Third-party diligence may include inspection, audit, appraisal, and legal drafting
  • Arrangement retainer from USD 59,500 based on scope and urgency
  • Success fee 2.5% of financed or issued amount at closing unless agreed otherwise
  • Bank, legal, and courier costs passed at cost

Final economics depend on the structure selected, the control package, and the quality of the counterparties and documentation.

Request Commodity Financing Terms

Share your contracts, shipment plan, and the funding amount required. We respond with eligibility, structure options, and a clear closing path.

Include KYC, recent financials, commodity specs, Incoterms, ports, inspection requirements, and any storage or collateral management plan. We act as advisor and arranger and coordinate execution through regulated counterparties where lending, custody, or intermediation is required.

Request A Quote

All transactions are subject to KYC and AML, sanctions checks, credit approvals, document conformity, and signed agreements. No offer of securities is made.

Financely acts as advisor and arranger. We are not a bank and do not take deposits. Commodity financing depends on lender approvals, diligence results, collateral controls, executed documentation, and counterparty performance. Nothing here is a guarantee of funding or execution.