Borrowing base facilities and warehouse financing

This Overview is a guide to the Banking & Finance content within the Trade finance: Borrowing base facilities and warehouse financing subtopic, with links to the appropriate materials.

Structured Trade Finance or Structured Commodity Finance (SCF) is a term used to encompass several different methods of finance for producers and traders of goods and commodities including borrowing base facilities and warehouse financing.

Borrowing base facilities

Borrowing base facilities ('BB Facilities') are a type of trade finance. They are working capital credit facilities designed to provide short term liquidity by way of advances or the issue of trade instruments ('Instruments') such as letters of credit or demand guarantees. They are secured in full by current assets (usually trading receivables, inventory (ie goods in storage or in transit), cash and contractual rights) of the borrower and/or other security providers. To that end, the amount of capital available to the borrower at any moment is directly linked to the value of the assets providing security to the lender(s).

BB Facilities are generally provided to trading companies on a revolving basis for the purposes of purchasing,

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Banking & Finance News

UK sanctions regime review lacks detail on beefing up meager enforcement

MLex: UK government plans to consolidate sanctions lists and speed up enforcement of civil-law breaches will be welcomed as aims, but the new plan fails to grasp the nettle of patchy enforcement. The latest look at the sanctions regime appears largely silent on how to improve matters: The government said it would look to increase the deterrent effect of enforcement, but appeared not to mention any new resources for investigators.

IOSCO publishes final reports on finfluencers, online imitative trading practices, and digital engagement practices

The International Organisation of Securities Commissions (IOSCO) has published three final reports on finfluencers, online imitative trading practices, and digital engagement practices (DEPs) as part of the third wave of its Roadmap for Retail Investor Online Safety. The reports identify a set of good practices for regulators and other stakeholders to consider in managing potential risks in the evolving retail market. They are a key element of a strategic initiative launched in November 2024 to protect retail investors from online fraud, excessive risk-taking and misinformation in the digital financial marketplace.

ICMA publishes position paper opposing uniform NBFI macroprudential framework

The International Capital Market Association (ICMA) has published a position paper, opposing the implementation of a uniform macroprudential framework for non-bank financial intermediaries (NBFIs). The paper argues existing EU regulations for asset managers and funds are sufficient, while recommending improved cross-border regulatory data sharing and market surveillance. ICMA is particularly opposed to imposing mandatory central clearing for bonds and securities financing transactions. Instead, the association advocates for broadening collateral eligibility and removing the barriers that hinder voluntary central clearing access.

BoE investigates Bank of London as EY raises red flags

Law360, London: Bank of London has said it is under investigation by the Bank of England's (BoE) regulatory arm, with the risk that an unfavourable outcome could affect whether it ultimately stays in business.

View Banking & Finance by content type :

News