Companies which work on the basis of a “metal margin” can experience significant working capital swings given price movements in the underlying commodity. Often with highly diversified portfolios of customers these companies have long been strong candidates for trade receivables securitisation and other receivables finance products.
On the payables side, working capital solutions can provide a powerful enabler for customers who often find access to capital challenging from conventional sources of commercial finance with strong take up on supply chain finance programmes.
Demica has arranged commodity related transactions with a value of over US$2bn in the past 24 months.
Demica can offer the following