Commodity finance aims to provide short-term, self-liquidating finance facilities to a range of trading companies from the mid-sized specialist product trader to the globally-integrated major trading houses. These facilities may be secured or unsecured depending upon our perception of the creditworthiness of the borrower and the structure of the business we are undertaking. Our major business lines comprise agricultural commodities, steel and base metals and energy products. Generally we target business where there are liquid terminal markets for the underlying commodity, but we will also work selectively with market-leaders that trade less liquid commodities.
IFPL team for commodities operates on a national basis providing comprehensive solutions for the finance of national as well as international trade. We employ a team of professionals, all of whom have multi-year experience in commodity finance and can offer our customers a range of traditional or bespoke commodity-finance solutions using a full range of products, including:
Direct Financing
Arranging Letters of Credit
Arranging Standby Letters of Credit
Arranging Guarantees and similar trade finance instruments
L/C confirmation services
Warehouse and receivables financing
Structured Commodity Finance (SCF) is a sophisticated commodity-based financing technique, specifically designed for commodity producers and trading companies doing business in the developing markets. Introduced in the early 1990s, SCF continues to play an important role, providing liquidity management and risk mitigation for the production, purchase and sale of raw, semi-refined or semi-processed materials. SCF funding solutions include a variety of pre-export finance, toll finance, counter-trade finance, and others. SCF can be applied across part or all of the commodity trade value chain: from producer to distributor to processor, and of course, the physical traders who buy and deliver commodities in the international and domestic markets. SCF financing is primarily based on performance risk and as such is particularly well suited for companies doing business in what are considered higher risk markets and industries.
