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.
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.
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
- 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
Discover more insights
How does inventory financing work?
What is the most common form of inventory financing?
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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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