Metal Inventory Repo Funding
Indicative Terms and End-to-End Closing Framework
FG Capital Advisors arranges short-term repurchase financing for qualifying metal inventories. Legal title is transferred to the lender on the transaction date and reverts to the borrower at repurchase. Funding capacity is pre-committed; overall timing is driven by collateral verification and documentation. Select any heading below to expand the relevant details.
Facility Snapshot
| Eligible Borrowers | Mining, smelting, trading and fabrication companies that hold unencumbered inventory and maintain board-approved risk management procedures. |
| Minimum Ticket | USD 10 million (larger requests may be syndicated). |
| Legal Form | True sale with forward repurchase, documented under the 2011 GMRA or an English-law repo agreement. |
| Metals | LME-grade base metals, cobalt, lithium units, gold, silver, PGMs and steel billets/coils. |
| Haircut | 10 – 50 %, determined by recent price volatility. |
| Advance Rate | Up to 90 % of spot price after application of the haircut. |
| Tenor | 30 – 180 days; renewable every 30 days subject to margin compliance. |
| Pricing | SOFR + 2.0 % – 4.5 %. |
| Margin Calls | Daily mark-to-market; variation margin is due on the next business day when the collateral value falls below the level required to maintain the agreed LTV. |
| Security | Negotiable warehouse receipts accompanied by perfected filings at the time of execution. |
Closing Timeline
- Data Submission (Day 1) — Upload KYC documentation, inventory schedule, warehouse receipts and insurance certificates.
- Pre-Screen (Day 1–2) — Review of collateral, sanctions and title; preliminary pricing grid provided by close of Day 2.
- Mandate & Retainer (Day 3) — Execute mandate; remit USD 50,000 – 175,000 retainer (non-refundable, not credited to closing). Exclusivity period: 60 days.
- Audit & Credit (Day 3–8) — Independent inspector verifies metal; lender credit assessment proceeds concurrently.
- Documentation (Day 6–10) — GMRA, pledge deeds and lien filings finalised; margin parameters confirmed.
- Execution & Funding (Day 11–12) — Agreements executed; lender remits gross proceeds; FGCA deducts 3 % closing fee and disburses the balance.
- Post-Close Monitoring — Daily pricing, T+1 variation margin and quarterly warehouse re-inspection through the FGCA portal.
Key Fees & Compliance
- Retainer — USD 50,000 – 175,000, non-refundable and not credited toward closing. Covers preliminary structuring, counterparty screening, collateral audit coordination, indicative pricing, KYC/AML review, legal drafting (GMRA or equivalent), lender presentation, and borrower-side legal counsel coordination. In certain cases, a portion may be applied toward lender counsel fees if explicitly covered by the engagement.
- Closing Fee — 3 % of gross proceeds, deducted at funding.
- Introducer Remuneration — 10 % of the retainer and 20 % of the closing fee, disbursed post-closing subject to countersigned introducer agreement.
- AML / Sanctions — FATF-aligned screening of all counterparties.
- Business Continuity — Mirrored data centres, dual-signatory banking and an appointed back-up agent.
Next Steps
Please submit the required documentation via the secure portal. FG Capital Advisors will acknowledge receipt and advise on eligibility within two business days. If the proposal is approved, a mandate letter and retainer invoice will be issued without delay.
