When a single cargo of diesel runs north of USD 70 million, even well‑capitalised traders feel the strain of tying up cash from lift to settlement. Refiners want payment at the loading hose; buyers often insist on credit terms that stretch forty‑five days or more. Add daily price swings, margin calls on ICE positions, and port delays, and the working‑capital gap widens fast.
Why Contract‑Backed Finance Fits the Barrel Business
- Asset‑rich, cash‑poor windows. Hydrocarbon trades are short‑dated, but ticket sizes spike balance‑sheet exposure. Funding based on the specific receivable — rather than blanket corporate leverage — keeps debt ratios steady.
- Creditworthy buyers, limited banking appetite. Banks limit country or product lines just when a new off‑take tender lands. A facility anchored to the buyer’s LC or standby letter sidesteps internal caps.
- Benchmark volatility. A two‑dollar swing in Brent can trigger seven‑figure margin calls. Having a drawdown that flexes with collateral value covers the mark‑to‑market without forced sales.
- Storage and demurrage creep. Delays at Fujairah or Rotterdam erode margin quickly. Funding terms that include a demurrage cushion protect P&L while cargo waits for a berth.
Where We See the Opportunity
Prices may swing, but demand for mobility fuels and LNG keeps volumes flowing. Mid‑sized firms with strong buyer relationships often lose bids because they can’t pre‑pay the refinery or secure freight at short notice. By pairing each cargo with a stand‑alone credit line, traders scale volume without diluting equity or stacking traditional bank debt.
Refined‑product arbitrage, bunker blending, and LNG spot cargoes are especially ripe: payment instruments already feature heavily, and voyages are short enough to match the tenor of a contract‑backed facility.
Financely arranges contract‑backed funding — advancing up to 90 % of cargo value against confirmed LCs, stand‑by undertakings, or insured receivables. Indicative terms land within 48 hours once we see your signed recap and KYC.
Need working capital for the next lift? Request a quote and move from fixture to cash without draining core credit lines.