Borrowing base loans and working capital lines

Borrowing money against your commodity inventory is not a service you will find at many traditional banks. For those few traditional banks that do lend against them, terms and advance rates are often unappealing. Conversely, here at Kilo Capital we are commodity-focused private credit lenders. Our deep knowledge of commodity inventory finance translates into sensible loan terms and high advance rates.

Sale and repurchase

Sell your designated commodity inventory to Kilo with an agreement to repurchase in the future at a pre-negotiated mark-up

Warehouse financing

Also known as Select Inventory Finance (SIF), Kilo owns the commodity, which is stored in an approved location ready for you to take delivery as needed. Select inventory finance is a highly efficient tool for financing your raw materials or finished goods with high commodity content. With an ability to finance up to 100% of the commodity 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.

Metal lease

Metal leasing addresses the need to finance metal assets and also protects your profit margins from volatile price movements. By leasing metal you are effectively renting it from us. While leasing the metal, you can process it into finished goods, refine it into deliverable form, or do whatever suits your business model. We offer lease advances through physical delivery to you or your suppliers, metal transfers, and sale-leaseback trades. Our trading desk is always there to facilitate purchases and sales under your lease line so you can keep your lease balance aligned with your inventory levels.

Warehouse / storage tank inventory financing

Also known as Select Inventory Finance (SIF), Kilo owns the commodity, which is stored in an approved location ready for you to take delivery as needed. Select inventory finance is a highly efficient tool for financing your raw materials or finished goods with high commodity content. With an ability to finance up to 100% of the commodity 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.

Prepaid forwards and scrap purchase agreements

Scrap purchase agreements allow e-scrap, auto catalyst, and other 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.

Distribution agreement, prepays

Enter into an offtake agreement with Kilo.