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Maximizing assets through inventory financing

InventoryFinance-header

StoneX provides its clients with inventory finance options that secure seasonal cash flow, increase supplies of inventory and efficiently manage working capital.

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Explore StoneX’s inventory finance programs

StoneX provides a variety of financing solutions that smooth out the financial effects of seasonal cash flow fluctuations and help businesses achieve higher sales volumes.

Inventory financing programs

Commodity finance programs

Our inventory finance programs operate across several commodities including grains, coffee, cocoa, cotton, lumber and metals.

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Sales/repurchase finance program

For customers that need to manage their inventory holdings to build their business, we offer a commodity sale and repurchase program that provides incremental liquidity. This straightforward program is a sale and repurchase transaction of your inventory with StoneX.

The transaction specifies the commodity, quantity, price and tenor of the transaction at the time the sale confirmation is executed. We have the flexibility to structure the program based on your specific needs and can offer varying advance rates and cost structures to align with your business objectives.
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Enhanced sales/repurchase finance program

For customers that need more than just working capital to build their business, StoneX offers an enhanced commodity sale and repurchase program that can not only provide incremental liquidity across most of the soft and agricultural commodities, but additionally provide origination, merchandising and margin management as needed.

This program allows StoneX to tailor a program to uniquely fit the needs of your business, drawing from our own extensive origination, merchandising, margin management and logistics experience.
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Margin finance program

For customers who are looking for flexibility in their working capital and to diversify their sales and merchandising capacity, we offer financing options that remove the margin burden and provide businesses with the ability to pick the best basis over time.

This program offers clients access to dynamic pricing structures and a larger suite of products while streamlining the process and eliminating margin requirements.
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Trade finance program

For importers, exporters, and brokers in the soft commodities, StoneX offers Trade Finance Programs tailored directly to your business needs. Our professionals have extensive experience in logistics, finance and operations for worldwide deliveries and storage.

StoneX can advance funds against collateral of coffee, cocoa and other soft commodities to provide the incremental financing to help our customers maximize their business.

Industry-specific financing programs

We offer industry-specific financing programs that include elements of inventory financing, margin management, merchandising and feedstock origination.

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Ethanol feedstock finance program

StoneX provides working capital financing for ethanol plants through our feedstock financing program. In this program, StoneX finances feedstock and maintains the hedge account for the corn inputs needed by an ethanol plant.
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Biodiesel feedstock finance program

StoneX provides procurement and working capital financing for biodiesel plants through our feedstock financing program. In this program, StoneX originates feedstock and sells it to the biodiesel plant on a credit basis.

Our impact

Working capital solution – enhanced procurement repo

StoneX finances hedge margin on forward contracts and inventory in storage

  • Client enters forward purchases (fixed price or fixed board) from suppliers
  • Client enters a back-to-back transaction to forward sell the commodity to StoneX on equivalent terms
  • StoneX carries short futures contracts and is responsible for hedge margin
  • Upon receipt of the commodity, client sells commodity to StoneX (i.e. issuance of warehouse receipts); StoneX pays the client; client pays the supplier
Enhanced procurement repo

Client benefit

  • StoneX finances inventory holdings and all margin associated starting from the forward contract freeing up capital for the client
  • Eliminates risk of being stopped out of a position due to market volatility
Inventory financing benefits
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FAQ

How does inventory financing work?

As a form of asset-based financing, inventory financing involves the acquisition of a loan or line of credit by a business to purchase materials it needs to manufacture products they intend to sell at a later date.

What is the most common form of inventory financing?

There are two types of inventory financing—inventory loans and inventory lines of credit. In order to choose the best option, your business needs to determine its specific needs. Inventory lines of credit offer more flexibility since they provide you with a set amount of money that you can access as needed.

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To learn more about how our customized financial solutions can help you stay one step ahead in the global markets, contact our team today.

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StoneX Commodity Solutions, LLC (“SXCS”), a subsidiary of StoneX Group Inc., trades in a variety of physical commodities, and offers customers services to help manage the risks associated with their physical product. Trading over-the-counter and exchange-traded derivatives is not suitable for all investors and involves substantial risk. This material does not constitute investment research and does not take into account the particular investment objectives, financial situations, or needs of individual clients or recipients of this material. You are directed to seek independent investment and tax advice in connection with derivatives trading.

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StoneX Financial Pte. Ltd. ("SFP") (Co. Reg. No 201130598R) is regulated by Monetary Authority of Singapore and holds a Capital Markets Services Licence (CMS100476) for Dealing in Securities, Collective Investment Schemes, Exchange-Traded Derivatives Contracts, Over-the-Counter Derivatives Contracts, and Spot Foreign Exchange Contracts for the Purposes of Leveraged Foreign Exchange Trading, is an Exempt Financial Advisor under the Financial Advisors Act 2001, and is a Major Payments Institution (PS20200625) under the Payment Services Act 2019 for Cross Border Money Transfers.

StoneX Financial (HK) Limited ("SHK") (CE No.: BCQ152) is regulated by the Hong Kong Securities and Futures Commission for Dealing in Securities and Dealing in Futures Contracts.

SFP acts as an appointed agent for SFL's payment services business.