Professional Services. Page prepared September 2025. FG Capital Advisors acts as arranger and advisor via regulated partners.
Inventory Repo (Title Transfer)
What An Inventory Repo Is
An inventory repo is a sale and repurchase structure that converts warehoused commodities into immediate liquidity. Legal title moves to the funder at day one. You repurchase on agreed terms at maturity. Custody sits with an approved terminal or warehouse under a collateral management agreement.
- Applies to metals, refined products, and shelf-stable agri stock with clear title.
- Works where stock is marketable, insured, and visible to the funder.
- Proceeds are routed through escrow to protect the exit.
At A Glance
Advance rates track liquidity, custody quality, and insurance. Hedging support can improve the margin where documented and assigned.
How The Repo Works
Custody
Approved storage with supervisor access, daily or weekly reporting, and inspection rights for the funder.
Title & Insurance
Warehouse warrants or receipts, clean chain of title, all-risks policy with the funder as loss payee.
Cash Flows
Day-one purchase price funds to you. Buy-back at maturity. Collections and sales routed through escrow.
Eligibility
Commodity grade, lot size, aging, and location tested against lender criteria. Concentration limits apply.
Pricing
Repo spread set by tenor, volatility, custody, and liquidity. Fees are transparent and itemized.
Exit
Repurchase on schedule or roll with fresh eligible stock. Non-performance triggers controlled liquidation.
Use Cases
Terminal Congestion
Release cash while cargo waits on berth or rail. Buy back when dispatch is secured.
Blend And Toll
Finance batches during in-warehouse blending or third-party tolling until offtake.
Market Windows
Hold inventory for price targets while maintaining liquidity for new trades.
Refinery or Smelter Feed
Secure feedstock and smooth production cycles through rolling repos.
Seasonal Agri
Bridge harvest to sale with audited storage and moisture or infestation controls.
Covenant Relief
Move stock off balance sheet to meet leverage thresholds where permitted.
Structure And Controls
| Component | What We Set | Why It Matters |
|---|---|---|
| Custody & Access | Approved warehouse list, supervisor mandate, inspection rights | Protects title and supports higher advances |
| Insurance | All risks, named loss payee, claims payable location | Mitigates storage and transit losses |
| Eligibility | Grade specs, lot size, aging limits, location controls | Keeps collateral bankable throughout tenor |
| Margin & Tenor | Repo spread, roll terms, buy-back triggers | Locks cash cost and exit mechanics |
| Waterfall | Escrowed proceeds, custody and supervisor fees | Clear accountability and audit trail |
Indicative Pricing And Eligibility
| Commodity | Custody | Indicative Advance | Notes |
|---|---|---|---|
| Copper Cathodes | LME-listed warehouse with CMA | 70–85% | Higher where hedged and warrants are clean |
| Diesel or Gasoil | Bonded terminal with dip tests | 60–75% | Requires proof of product and throughput |
| Cocoa Beans | Audited dry store with fumigation | 55–70% | Aging, humidity, and infestation limits apply |
Timeline To First Draw
Key Questions
Is this a loan
No. It is a sale and repurchase structure with title transfer to the funder.
Can positions be hedged
Yes. Documented hedges that are assigned can support advance levels.
What blocks approval
Unclear title, unapproved storage, missing insurance, or weak reporting.
Can the repo roll
Yes, subject to eligibility, custody standards, and timely buy-backs.
Turn Warehouse Stock Into Cash
Send your stock list, warehouse details, and offtake plan. We will confirm scope, a fixed structuring fee, and a repo path that fits your cycle.
Start Your Inventory RepoDisclaimer. FG Capital Advisors provides advisory and arrangement services. Final terms are set by lenders after diligence and credit approval. Custody quality, title, and insurance drive pricing and capacity.
