StoneX Convert Morning Desk Note – 12/5/2024
Thursday 1:10 PM
Maximizing assets through inventory financing
StoneX provides its clients with inventory finance options that secure seasonal cash flow, increase supplies of inventory and efficiently manage working capital.
The StoneX approach to inventory financing
Institutional-grade services
Many small to medium-sized businesses have less access to working capital and banking facilities. We cater to this client base by providing them with the institutional-grade services they need to effectively manage their inventory needs.
Customizable programs
StoneX provides the sophistication of a large financial bank but tailored to the size of your business. We work to develop close relationships with our clients so that we can offer financing solutions that help you meet your goals.
Efficient processes
Because of our advanced infrastructure and systems, we are able to move fast. The processing of your deals will not be delayed by any approval or documenting requirements that banks place on their clients.
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.
Commodity finance programs
Our inventory finance programs operate across several commodities including grains, coffee, cocoa, cotton, lumber and metals.
Industry-specific financing programs
We offer industry-specific financing programs that include elements of inventory financing, margin management, merchandising and feedstock origination.
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
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 Market Intelligence
StoneX Convert Morning Desk Note – 11/22/2024
Fri, Nov 22, 2024 at 12:41 PM UTC
StoneX Convert Morning Desk Note – 11/20/2024
Wed, Nov 20, 2024 at 01:22 PM UTC
StoneX Convert Morning Desk Note – 11/19/2024
Tue, Nov 19, 2024 at 12:52 PM UTC
Upcoming events
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.
StoneX: We open markets
Our market expertise, advanced platforms, global reach, culture of full transparency and commitment to our clients’ success all set us apart in the financial marketplace.
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GlobalityWith access to 40+ derivatives exchanges, 180+ foreign exchange markets, nearly every global securities marketplace and numerous bi-lateral liquidity venues, StoneX’s digital network and deep relationships can take clients anywhere they want to go.
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TransparencyAs a publicly traded company meeting the highest standards of regulatory compliance in the markets we serve; our financials and record of accomplishment are matters of public record. StoneX’s commitment to “doing the right thing over the easy thing” sets us apart in the industry and helps us build respect, client trust and new partnerships.
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ExpertiseFrom our proprietary Market Intelligence platform, to “boots on the ground” expertise from award-winning traders and professionals, we connect our clients directly to actionable insights they can use to make more informed decisions and achieve their goals in the global markets.
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The subsidiaries of StoneX Group Inc. provide financial products and services, including, but not limited to, physical commodities, securities, clearing, global payments, risk management, asset management, foreign exchange, and exchange-traded and over-the-counter derivatives. These financial products and services are offered in accordance with the applicable laws in the jurisdictions in which they are provided and are subject to specific terms, conditions, and restrictions contained in the terms of business applicable to each such offering. Not all products and services are available in all countries. The products and services offered by the StoneX Group of companies involve risk of loss and may not be suitable for all investors. Full Disclaimer.
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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.
© 2023 StoneX Group Inc. All Rights Reserved.
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.