Structured Commodity Financing is a form of financing for the commodities or trade goods sector (e.g. crude oil, crude oil products, natural gas, coal, coke, steel and steel products, non-ferrous metals, cotton, grain, oil seeds, base chemicals, fertilisers and paper, etc.). The lending structure is determined by the production, transport or sales cycle for the goods concerned. Generally, a fixed percentage of the contract value is financed, depending on the goods concerned and the specifics and risks of the commercial transaction.Common forms of financing:
- Advance payment financing/pre-financing,
- Tolling financing (toll manufacturing),
- Transport financing,
- Storage financing,
- Payment term financing
- and specific combinations of these forms of financing customised to the transactions concerned
The product is primarily directed at commodity traders, commodity producers and organisations or customers connected with them who have a high-level of demand for financing working capital in connection with commodities.