For customers that need working capital to build their business, FCStone Merchant Services, LLC offers a commodity sale and repurchase program that can provide incremental liquidity across most of the soft and agricultural commodities.
These straightforward programs are a sale and repurchase transaction of your inventory with FCStone Merchant Services, LLC. The transaction specifies the commodity, quantity, price, and tenor of the transaction at the time the sale confirmation is executed. FCStone Financial provides 90% of the commodity cash value on the transaction sale date.
Benefits of the program include:
- The customer frees up capital in its operating line.
- FCStone Merchant Services is responsible for the margin requirements during the period it owns the commodities.
- The customer can elect an early repurchase of the commodity, offering flexibility of market conditions.
- There are no registration fees to enter the program.
- There are no commitment fees if you do not sell to the agreed commodity cap.
- Improved inventory control. The customer can create customized enrollment periods that match purchase and sale cash flows.
- Minimal administration. The program requires less administration and negotiation than comparable bank financed transactions.
- FCStone Merchant Services works with the customer to understand their commodity risk management needs