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 are working capital credit facilities which 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.

Borrowing base facilities are generally provided to trading companies on a revolving basis for the purposes of purchasing, storing, transporting and selling prescribed commodities.

A typical borrowing base facility will have a tenor of one to two years, although it is also common for borrowing base facilities to be extended.

For more information, see Practice Note: Borrowing base facilities—structure, key terms and risks.

Borrowing base facility agreements

The facilities generally made available under a borrowing base facility agreement

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