Working Capital Loan for Commodity Traders
Working Capital Loan for Commodity Traders
Financely helps commodity traders access structured working capital solutions through senior, mezzanine, and junior lenders — or by issuing private notes for qualified deals.
Physical trade is a cash game. You buy before you sell. You load before you invoice. And you pay long before the end buyer clears funds. If you're a commodity trader, you already know the problem — traditional finance moves too slow, or not at all.
That's where working capital loans come in. And more importantly, that’s where Financely sits — between your deal and the capital required to close it.
What Is a Working Capital Loan for Commodity Trades?
A working capital loan bridges the liquidity gap between procurement and payment. Whether you’re buying crude, copper, fertilizer, or wheat — if your buyer pays net-30, net-60, or on delivery, you need capital to move.
The loan is structured around the deal — not your balance sheet. It’s repaid when your buyer settles or when the inventory is flipped.
How Financely Structures the Capital
We don’t just forward loan requests to banks. We build the capital stack around the trade mechanics and risk profile. Depending on deal size, buyer strength, and timeline, we’ll pull from senior, mezzanine, or junior capital sources across our lender base.
- Senior Capital: Lowest cost, collateral-backed, and typically funds the largest portion — up to 70–80% of eligible contract value.
- Mezzanine Capital: Subordinated but flexible. Useful when you need a top-up and margins allow for layered cost.
- Junior Capital: High-yield capital for opportunistic trades or final-mile funding — when speed matters more than price.
When We Issue Private Notes
For qualified transactions, we offer note issuance directly through our platform. This allows multiple lenders or funds to participate in a trade-specific vehicle. The note is structured, documented, and monitored — backed by the deal, not generic credit models.
- Notes range from $500K to $25M+
- Collateralized by receivables, inventory, or contracts
- Distributed to real-money credit funds, family offices, and allocators
Use Case: $4.2M Grain Trade, 45-Day Buyer Terms
A trader secures a 20,000 MT grain order from an anchor buyer in East Africa. The buyer pays on delivery +30 days. Supplier requires 50% down and LC for the rest. We structure a $3.2M loan stack: $2.6M senior, $600K mezzanine. The facility is repaid from the buyer’s LC drawdown after delivery.
No equity raised. No margin left on the table. Trader retains full upside.
What You Need to Qualify
- Signed purchase order or contract with end buyer
- Supplier ready to ship or already holding goods
- Defined timeline and exit (LC, confirmed invoice, offtake)
- Margin that justifies cost of capital
What You Don’t Need
- A flawless credit score
- Personal guarantees
- Years of audited financials
We fund deals — not dreams. If your trade is real, your paperwork is clean, and your buyer is credible, we can structure the financing.
Typical Terms for Working Capital Loans
| Parameter | Range |
|---|---|
| Loan Amount | $500K to $25M+ |
| Tenor | 30 to 180 days |
| Advance Rate | 70% to 90% |
| Structure | Loan or Note Issuance |
| Security | Receivables, contracts, warehouse receipts |
| Rate | 1.5% to 3.5% monthly, depending on risk and tenor |
We Work With Real Lenders
We only work with institutional capital and verified credit investors. No bullet trades. No fake monetization. Every deal is documented, tracked, and accountable. If you’ve been burned by smoke-and-mirrors lenders before, this is where you get clarity.
Need Working Capital for Your Next Deal?
We help real traders close real deals. Whether you need $500K for a shipment or $10M for a rolling portfolio, we’ll build the structure, issue the note (if needed), and match you with lenders who execute.
Submit Your Deal Book a 1:1 CallGet 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.
Trade Finance
Tap into solutions like letters of credit, bank guarantees, and payment facilitation. We address the challenge of global transaction risk through structured strategies that foster cross-border growth. Complete the form to unlock streamlined funding aligned with your commercial objectives.
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Access non-recourse funding for infrastructure, renewable energy, or other capital-intensive ventures. We mitigate capital constraints by isolating project assets and focusing on risk management. Provide your details to receive a structure that drives growth and maximizes returns.
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Secure financing for business or real estate acquisitions. We ease transaction hurdles by reviewing cash flow, synergy opportunities, and exit plans. Complete the form for a customized proposal that supports your strategic investment objectives.
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Financely assists banks facing Basel III pressures by distributing trade finance deals and providing collateral for letters of credit. We reduce capital burdens while preserving client relationships and fostering service expansion. Submit your request to optimize your trade finance offerings.
Submit a RequestOnce we receive your submission, our team will review your information to determine feasibility. If eligible, you will receive a proposal or term sheet within 1–3 business days. Visit our FAQ and Procedure pages for more information.
Disclaimer: Financely provides financing based on due diligence and feasibility. Approval is not guaranteed, and past performance does not predict future outcomes. All terms are subject to review. Financely primarily assists with structuring and distribution. Qualified parties carry out the project if the client approves the proposal.
