Base & Specialty Metals
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Kilo Capital leverages our core experience set in precious metals to delivery the same advantages to middle market customers storing and utilizing base and specialty metals. Benefit from the traditional tools of metals finance enjoyed by large, blue chip companies - metal leasing, inventory finance, and secured loans - as well as bespoke metal hedging programs and physical supply.
We first work to understand what factors are most important to your metal financing. To achieve this, we collaborate with you to understand issues like whether you want to be exposed to metal prices, or hedge out price risk. What is the desired balance sheet treatment for the metal and related financing? Where is the metal located (e.g. in inventory, at suppliers, in a vault) and what is it used for (e.g. inventory, fixed assets, investment)? What form is the metal in (e.g. bar, scrap, sheet, formed)?
Armed with this information we work with you to structure the right combination of financing tools for your specific situation. While not an exhaustive list, the following are some of the core financing tools we use to help companies get the outcome they are looking for.
BASE & SPECIALTY METALS WE FINANCE
- Copper
- Aluminum
- Nickel
- Molybdenum
- Metallurgical Coal
INDUSTRIES WE SERVE
- Industrial manufacturing
- Mills
- Steel & aluminum
- Energy transition
- Automotive
- Above-ground mining & recycling
SUPPLY & PRICING Solutions
Owned Inventory
Use Kilo’s balance sheet for aging product or to stockpile ahead of seasonal demand
Price locks
Outsource your Treasury functions to Kilo by locking in the forward price for a set quantity of commodity for an estimated time period. Give your procurement team more options over deciding when to lock in prices and when to adjust commodity surcharges.
Warehouse & select inventory finance
Select inventory finance (SIF) is a highly efficient tool for financing your raw materials and finished goods containing base and specialty metal. With an ability to finance up to 100% of the metal content of this inventory, SIF is a powerful financing instrument. Like leasing, select inventory finance addresses your financing need and also transfers the metal price risk to us.
Borrowing base loans and working capital lines
Borrowing money against your metal inventory is not a service you will find at many traditional banks. For those few traditional banks that do lend against metals, terms and advance rates are often unappealing. Conversely, here at Kilo Capital we are commodity inventory- focused private credit lenders. Our deep knowledge of metal finance translates into sensible loan terms and high advance rates.
Prepaid forwards and scrap purchase agreements
Scrap purchase agreements allow scrap aggregators to lock in the metal price as they acquire material and get paid long before the final metal processing is complete. This type of financing is particularly helpful for businesses dealing in lower grade scrap given the longer processing times. These structures can work well alongside a company’s bank credit lines or other financing types offered by Kilo.
Safety stock / buffer inventory financing
Kilo will finance extra stock of raw materials as a protection against unforeseen events.
Forward sale & delivery agreements
Kilo will arrange for delivery of product to your designated location in your desired form under an agreement to sell you the commodity at an agreed upon date and price
Syndicated credit lines
Scale up the size of your facility with a senior secured line of credit that is syndicated to a small group of lenders
Equipment financing
Companies in metal intensive industries often have significant equipment needs. Some banks and lenders have negative preconceptions about commodity-intensive businesses, making it difficult for these companies to secure equipment financing on the most favorable terms. Equally, the highly specialized nature of the equipment can sometimes add to this challenge. With Kilo’s deep knowledge of commodity intensive industries, we can often present a competitive and tailored equipment financing package.
Supply & Pricing Solutions
Owned Inventory
Kilo will use its balance sheet for aging product or to stockpile ahead of seasonal demand
Price Locks
Outsource your Treasury functions to Kilo by locking in the forward price for a set quantity of commodity for an estimated time period. Give your procurement team more options over deciding when to lock in prices and when to adjust commodity surcharges.
Raw material supply & procurement management
You dictate the specs and supplier; we ship product to your facility. You decide restocking level to ensure JIT inventory access. Lock in price for set periods and volumes, or buy on a spot basis.
LET'S EXPLORE YOUR COMMODITY FINANCE QUESTIONS.
ContactDisclaimer: Kilo Fund Management is Commodity Pool Operator duly registered with the National Futures Association. This page is being provided for informational purposes only. Kilo Fund Management is not currently accepting additional investors for its managed funds. This information is not a solicitation to invest.