Email Address :- akram@stgeorgecommercial.co.uk
Structured Commodity Finance
Structured Commodity Finance
What is Structured Commodity Finance?
Structured Commodity Finance (SCF) is a specialized lending solution designed to support the production, trading, and movement of commodities across borders. It enables producers, traders, and distributors to manage liquidity, risk, and international trade efficiently, especially in emerging markets.
Who is it for?
SCF is ideal for commodity producers, traders, processors, and exporters dealing in physical commodities such as oil, gas, metals, agricultural goods, and energy.
Key Features:
Tailored financial structures based on the flow of goods and cash.
Secure funding using collateral such as inventory, receivables, or future production.
Risk mitigation through instruments like letters of credit, performance guarantees, and insurance.
Flexible financing across the commodity lifecycle — from pre-export to post-shipment.
Benefits:
Improves access to capital even in high-risk regions.
Enables smooth operations throughout the trade cycle.
Reduces reliance on balance sheet strength alone.
Supports growth by unlocking working capital tied up in the supply chain.
Process of Structured Commodity Finance
Process of Structured Commodity Finance
The borrower shares details of the commodity trade cycle, including contracts, parties involved, and financial needs. Lenders assess risk and structure a tailored finance solution based on the flow of goods and cash.
Due Diligence & Documentation
Financials, collateral (e.g., inventory, receivables), and contracts are reviewed. Legal documentation is prepared, including security agreements and credit terms.
Facility Activation & Disbursement
Once approved, funds are disbursed based on agreed milestones — e.g., purchase of raw materials, shipment, or production stages.
Monitoring & Repayment
The lender monitors the commodity movement, sales, and cash flows. Repayments are collected from the proceeds of the sale or export as per the facility agreement.
Structured Commodity Finance Enquiries
Contact Information
If you have a finance enquiry, please use the contact form.
Otherwise, you can reach us on the email addresses below.
St. George Commercial finance Brokers Limited
11 Curtis House,
34 Third Avenue,
Hove,
BN3 2PD
07958 710 010
01273 855 711
01273 855 710
FAQs – Structured Commodity Finance
Structured Commodity Finance supports producers and traders by financing commodity flows using collateral like goods or receivables. It enhances liquidity, reduces risk, and covers both pre- and post-shipment stages.
What is Structured Commodity Finance (SCF)?
SCF is a specialized form of trade finance that supports the production, transportation, and sale of commodities using the underlying goods and receivables as collateral.
Who uses Structured Commodity Finance?
Commodity producers, traders, processors, and exporters dealing with metals, energy, agri-commodities, or raw materials often use SCF to manage liquidity and mitigate risk.
What types of commodities are eligible?
Eligible commodities include oil, gas, metals, agricultural products (like coffee, cocoa, cotton), and other raw materials with global trade value.
How is SCF different from regular trade finance?
SCF is tailored to complex trade flows and relies heavily on the structured control of commodity movement and cash flow rather than traditional balance sheet lending.
What security or collateral is required?
Collateral may include the commodities themselves, warehouse receipts, export contracts, receivables, and insurance policies.
