HMX Finance

Private Credit Investors

Welcome to an opportunity to become a direct private credit lender to commodity trade finance deals.

 

• The lender has access to investment opportunities in private credit. 

• The lender can invest in a stand-alone facility or a pool of facilities. 

• Hommocks, a professional international commodity trade finance company, arranges and structures each facility.

• Hommocks conducts credit analysis, risk assessment and due diligence on borrowers and facilities. 

• The lender lends directly to commodity traders together with Hommocks as a partnering co-lender.

• Hommocks administers the loans including money wires and collections.

• Hommocks provides reports and statements to lenders.

• Hommocks monitors the commodity collateral. 

 

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Unitranche Loan:

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Lender’s option to lend in:

 

• The senior secured debt that funds 85% of the loan amount.  $50,000 - $1,000,000 per deal.

• The junior secured debt that funds 15% of the loan amount that co-lends with HMX Finance.  $25,000 - $150,000 per deal.

 

The senior secured and junior secured loans combined are called a unitranche loan.

 

Interests of the senior lender and junior lender are aligned.  They both seek the loans to perform properly.

 

Lenders have Hommocks as a strong, professional partner who structures and arranges the loans.  

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HMX Finance will always have an investment in part or in whole of the junior secured loan.

 

If a loan defaults, senior lender is paid out first from any loan recoveries before the junior lender.  Junior lender has higher risk and thus is paid approx 40% higher than the senior lender. 

 

Non-US lenders are also welcome in addition to US lenders. 

Each lender must assess and understand risks associated with the private credit loans.

 

 

Why invest in commodity trade finance?

Commodity trade finance has many positive attributes favored by many investors:
 

• Direct loans.

• Uncorrelated with, and unaffected by, market volatility.

• Unaffected by inflation.

• Short term duration, typically 30 to 90 days per loan.

• Uncommitted.

• High yield.

• Backed by receivables and inventory as source of repayment.

• Low default rate : investment grade characteristics.

• Recurring, transactional deals.

• Fund quickly through a streamlined approval process

• Shorten cash conversion cycle

• Respect existing debt covenants