Trade Finance Services

Trade Finance Services


Commodity trading, especially grains, and biofuels, involves significant capital requirements, long supply chains, and inherent risks such as price volatility, currency fluctuations, and counterparty risks. 

Trade finance acts as a critical enabler, providing the liquidity and security needed to facilitate transactions, mitigate risks, and ensure timely delivery of goods.

At GrainFuel Nexus®, we understand that the global sourcing of grains, and biofuels requires not only market expertise, but also robust financial solutions to ensure seamless transactions. 

Our Trade Finance Services are designed to empower our clients by providing tailored financial solutions that bridge the gap between buyers and sellers, enabling smooth and efficient trade operations across the globe. Our services include :


Inventory, Pre-Shipment, and Post-Shipment Financing

We supports high-value transactions and long-term trade relationships, with revolving credit facilities, and risk-sharing arrangements.

We provide working capital solutions to help producers, aggregators , and buyers manage cash flow throughout the trade cycle.

Inventory Financing  

We offer financing solutions against commodity inventories, allowing clients to unlock the value of their stored grains, providing liquidity without requiring immediate sale of inventory.

Inventory Financing manage price volatility by enabling clients to hold inventory for better market conditions.

Pre-Shipment Financing

Enables producers and aggregators to finance the procurement carrying cost of goods before shipment.

Post-Shipment Financing  

Improves cash flow and operational efficiency.


Risk Management Solutions


We help clients manage risks associated with commodity trading, including price volatility, currency fluctuations, and counterparty risks.

Hedging Instruments; Futures, options, and swaps to lock in prices and reduce exposure to market fluctuations.


Documentation Management 


GrainFuel Nexus® provides hands-on, expert stewardship of the entire documentary and financial ecosystem of international commodity trade. 

We move beyond advisory to active execution, managing critical instruments such as Documentary Letters of Credit (DLCs), Standby Letters of Credit (SBLCs), and the precise documentation required under IMFPA, SPA, and GAFTA/FOSFA contracts.

Our team ensures absolute compliance with complex international regulations from sanctions screening to rules of origin while meticulously preparing and verifying Phytosanitary Certificates, Certificates of Origin, and Fumigation Certificates. 

This end-to-end oversight transforms documentary complexity from an operational burden into a competitive advantage, guaranteeing smooth, secure, and efficient transaction cycles for our partners


Transactions Procedures 

(Typical shipment)    

In all franchise and international operations, GrainFuel Nexus® adheres to globally recognized financial and contractual standards. 

The default payment settlement instrument is the irrevocable confirmed Documentary Letter of Credit (DLC), issued from top 25 international banks, which ensures that sellers receive payment upon proper presentation of shipping and commercial documents. 

Additionally, a Performance Bond (PB) issued by the seller’s bank, typically ranging from 2% to 5% of the contract value, to guarantee delivery obligations.

1. Verification Stage   

  • Buyers mandate /NCNDA/IMFPA signed.    
  • POF ( Proof of Funds ) / RWA ( Ready , Willing , and able ) / BCL ( Bank Comfort Letter) / MT799
  • POP ( Proof of Product ) and SGS inspection reports exchanged.

2. Contracting Stage and   International Trade Instruments

  • Buyer issues an ICPO (Irrevocable Corporate Purchase Order).
  • Seller responds with an FCO (Full Corporate Offer) with MSDS.
  • Buyer and seller sign the SPA (Sales & Purchase Agreement) , and to include IMFPA.
  • Buyer opens an irrevocable, confirmed DLC in favor of the seller.
  • Seller may issue a PB as contractually required.
  • Shipment arranged through nominated shipping company. 
  • Freight contract issued (charter party agreement).
  • Independent inspection (SGS, Bureau Veritas, Cotecna).    

3. Closing Stage 

  • Payment made via MT103 against shipping documents.
  • IMFPA disbursements executed automatically by seller bank.