Commodity Trade Finance Term Sheet

Commodity Trade Finance Term Sheet


Empowering Physical Commodity Traders

Financely offers structured trade finance solutions for physical commodity transactions. Our expertise supports end-to-end financing, allowing clients to optimize their working capital and ensure seamless supply chain operations. Below, you'll find a detailed overview of the terms for our commodity trade finance facility.

Facility Overview


Trade Finance Term Sheet
Parameter Details
Borrower
  • Corporate entities or trading houses.
  • Proven track record in trade operations.
  • Strong compliance and governance standards.
Facility Type
  • Revolving Credit Facility (RCF): Provides ongoing liquidity for trade operations.
  • Borrowing Base Facility: Structured as a self-liquidating loan, secured against collateral.
Facility Amount

Ranges from $5 million to $200 million. Determined by:

  • Trade volume.
  • Collateral value.
  • Borrower's creditworthiness.
Tenor
  • 90 to 360 days.
  • Renewable for subsequent trade cycles.
Collateral
  • Commodities being financed (e.g., oil, metals, agricultural products).
  • Trade receivables and payment obligations.
  • Warehouse receipts and bills of lading.
  • Other trade-related documents.
Loan-to-Value (LTV)
  • Up to 80% of the commodity value.
  • Subject to market liquidity and volatility.
Interest Rate
  • LIBOR + 3.0% to 6.0%.
  • Fixed rates available upon agreement.
*financely.io – Trade & Project Finance Advisory*

How We Solve Traders' Problems?

Traders often face challenges in raising capital for expansion. We solve this by facilitating access to institutional funds, thereby accelerating trading operations and capacity.

How It Works?

Our approach includes analyzing the trader's financial needs and trading strategy, followed by designing and structuring suitable debt/equity offerings. We prepare all necessary documentation and manage investor communications to secure funding.



Duration

The timeline varies based on each trader's specific needs and the complexity of the offering. Initial analysis and structuring may take weeks, with the total process extending over months.

Cost

Fees are based on the offering's size and complexity, covering structuring, documentation, and investor relations management. We provide detailed pricing upon consultation.

Request A Quote

For more information on how Financely can support your commodity trading needs, click the button below, submit your deal information, and we'll send you a proposal. Our structured finance team is ready to help you navigate the complexities of global trade with efficient and tailored solutions.

Request A Proposal
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