Collateral Management Agreement Setup for Commodity Finance
Lender asking for a collateral management agreement? We structure the CMA, coordinate collateral managers and get it lender-ready.
Start Client IntakeWho This Is For
Commodity producers, traders and distributors whose lender will only fund stock if it sits under a collateral management agreement (CMA). It fits inventory, warehouse receipt, repo and borrowing base facilities where the lender needs independent control of the goods before it advances funds.
What We Do And What You Receive
We map the goods, the storage sites and the release process the lender needs. We then coordinate independent collateral managers and the lender so that the CMA, the warehouse arrangements and the facility terms work together. You receive a control and release-mechanics memo, a comparison of collateral manager proposals, a CMA term checklist covering scope of control, reporting, insurance, liability and release instructions, and coordination of signing with the lender, the collateral manager and the warehouse operator.
Process And What To Send
Submit the transaction through client intake.
We assess the goods, the sites and the financing.
If it fits, we send a written proposal.
We coordinate the CMA through to signing and first drawdown.
Send the commodity and quantities, the warehouse locations and operators, the lender's term sheet or requirements, insurance details, stock reports and your company documents for KYC.
Why FG Capital Advisors
FG Capital Advisors is an independent structured trade and commodity finance advisor. We are not a bank and do not issue instruments in our own name. We prepare the file, coordinate banks and other counterparties, and work through regulated partners where required. Every request is assessed before we accept a mandate. Where it fits our scope, we issue a written proposal that sets out the scope of work, responsibilities and commercial terms. Final terms are always set by the banks after their own diligence and credit approval. We are not a collateral manager. We work with independent collateral managers chosen to suit the lender.
Related Services and Guides
Start Your Client Intake
Ready to move? Send the transaction through our client intake form, choose the Trade Finance & Working Capital route and include the details listed above. We review every submission and reply in writing with next steps.
Start Client IntakeFrequently Asked Questions
What is a collateral management agreement?
It is an agreement between the borrower, the lender and an independent collateral manager. The collateral manager controls and reports on the stored goods and only releases them on the lender's instructions.
Who pays the collateral manager?
Usually the borrower, as a cost of the facility. The exact split is set in the facility and CMA terms.
Can a CMA work at the borrower's own warehouse?
Often yes, under a field warehousing setup, if the collateral manager can take exclusive control of the storage area. The lender has to accept it.
