Funding To Buy Physical Commodities

Important Disclosure. For professional counterparties only. Informational content. Not a public offer. Any engagement is subject to underwriting, KYC/AML, sanctions screening, conflicts checks, and definitive documentation.

Funding To Buy Physical Commodities

Buying physical commodities at scale requires structured capital.

Cash-on-delivery purchasing limits growth. Traditional banks impose restrictive limits. Many trading firms sit on profitable contracts but lack balance sheet capacity.

We arrange and place structured debt and trade finance facilities that fund the purchase, storage, and sale of physical commodities through senior, mezzanine, and junior tranche capital.

We do not lend. We operate as a structured debt and trade finance placement firm.

The Core Problem

Physical commodity trading is working-capital intensive.

Each cargo or shipment ties up cash before revenue is realized.

Without structured finance, traders face capped volumes, missed opportunities, and volatile cash flow.

Structured trade finance converts a commercial transaction into a financeable credit asset.

How Commodity Purchase Financing Works

1. Transaction Definition

Identify commodity, supplier, buyer, contract terms, volume, and pricing basis.

2. Structure Design

Define senior, mezzanine, and junior tranches plus collateral and controls.

3. Packaging

Prepare lender-grade transaction memo and financial model.

4. Capital Placement

Distribute to aligned private credit funds, family offices, and institutional lenders.

Typical Capital Stack

Senior Tranche

Lowest risk layer.

Usually secured by commodity title, warehouse receipts, and assignment of proceeds.

Mezzanine Tranche

Sits behind senior.

Enhances leverage where senior lenders cap advance rates.

Junior Tranche

First-loss or subordinated layer.

Used to bridge equity gaps or support early-stage trading firms.

Sponsor Equity

Trader’s own capital at risk.

Commodities We Commonly Support

  • Crude oil and refined petroleum products
  • Metals and concentrates
  • Agricultural commodities
  • Fertilizers and chemicals
  • Energy transition materials

Common Trade Finance Structures

  • Pre-export finance
  • Borrowing base facilities
  • Inventory and warehouse finance
  • Receivables-backed facilities
  • Offtake prepayment structures

Our Role

We structure transactions so that capital providers can underwrite them.

We prepare lender-grade materials, design the capital stack, and place tranches with aligned capital.

We manage investor and lender decisioning through term sheet and closing.

Our Structured Commodity Funding Services

Transaction Underwriting

Commercial, operational, and financial analysis.

Capital Stack Engineering

Senior, mezzanine, and junior tranche design.

Documentation Build

Transaction memo, model, and data room.

Capital Placement

Distribution to private credit and institutional lenders.

Term Sheet Negotiation

Support through pricing and structure.

Program Upsizing

Increase facility size as trading volumes grow.

What We Do Not Do

We do not provide capital ourselves.

We do not guarantee funding.

We place transactions with third-party capital.

Request Commodity Purchase Funding

Submit commodity type, monthly volume, contract terms, and target facility size. We will revert with an execution plan and scoped quote.

Request a Quote

Disclaimer. Best-efforts execution. No guarantees of funding, pricing, or closing.