1. The Opportunity & Trade Thesis
Trade Overview
- Commodity: Urea (Agriculture Granular).
- Packing: Jumbo Bags.
- Volume: 50,000 Metric Tons (MT) per month.
- Incoterms: CIF (Cost, Insurance, and Freight).
- Seller: Direct Urea Producer Factory.
- Buyer: Verified Government Owned Company.
- Investor Capital Term: Only 30 days per cycle.
Core Investment Thesis
- Principal Security: Full cargo value secured by an irrevocable DLC (Documentary Letter of Credit) from the Government Buyer.
- Payment Mechanism: Payment is via MT103 from the buyer's bank after inspection at the destination port.
- Risk Profile: Low risk—backed by a government entity and the banking security of the DLC.
- Fixed Payout: Investor profit is a fixed USD 250,000 per transaction cycle.
- Capital Function: USD 20M is used to purchase the cargo from the producer and initiate the supply chain.
2. Payment Security and Inspection Flow
The transaction is secured by institutional backing and two distinct quality checkpoints:
Loading Port Inspection
Independent Q&Q (Quantity & Quality) inspection performed by the Seller's inspector. All Proof of Product (POP) documents are generated here.
Final Payment Trigger
Payment (MT103) is made by the buyer's bank after successful inspection at the destination port, as specified by the DLC.
Destination Inspection
The Buyer's independent Q&Q inspector verifies the cargo. This report is submitted to the buyer and the bank to release the final payment.
3. Risk Mitigation & Title Transfer
Security of Principal via DLC
The core risk is mitigated by ensuring the investor's principal is released upon documented delivery:
- DLC Conditional Payment: The DLC guarantees payment only upon presentation of the final, successful Q&Q inspection report from the destination port.
- Title Transfer: Title of the cargo is transferred to the buyer only after the buyer's bank makes the payment (MT103) based on the destination inspection report.
- Investor Role: Investor capital secures the cargo for the short 30-day window, providing an immediate return upon the execution of the bank-guaranteed payment.
4. Operational Alignment and Management
1. Capital Security
The investment is secured by the cargo (Urea) and the irrevocable DLC from the Government Buyer's bank.
2. Transaction Expertise
Our team possesses specialized commodity, shipping (CIF), and trade finance (DLC/MT103) expertise for flawless execution.
3. Trade Location
All execution and final payment settlements are managed through secure corporate channels in the UAE.
5. Fixed Financial Ask & Fixed Yield Structure
Secured Working Capital & Fixed Payout
Investment Required: USD 20 Million
Payout Per 30-Day Cycle
USD 250,000
Return on Capital (30 Days)
1.25%
⇒ Annualized Return of 15% (Based on 12 Cycles)
The payout is a fixed $250,000 for each successfully completed 50,000 MT Urea trade cycle. Capital is returned after the 30-day term.
Investment Term
~30 Days
Payment Security
Bank DLC (MT103)
Fixed Payout
USD 250,000
Next Steps
Immediate Focus: Finalize the Term Sheet and deploy USD 20 Million to execute the first trade.
Target: First cargo shipment within 45 days of capital deployment.
Discuss Trade Funding Now