As a partner in fertilizer commodity trade financing, we ensure our services meet your specific requirements for financial lending to companies you deal with. If you require traceability of fertilizer cargo along the supply chain, our technical expertise can assist you. We operate a network of over 1,200 offices and laboratories around the globe, employing more than 55,000 dedicated staff and professionals to meet all your warehousing and collateral management needs.

SGS collateral management, stock monitoring and cargo-guarantee services provide solutions to reduce operating risk and thus the risk that your financial institution has taken on financing. We ensure that the quantity and/or quality of goods stored or shipped comply with contractual requirements. SGS certificates are recognized in the international financial community and throughout the fertilizer industry. Our services are available globally to producers and shippers of bulk, bagged, and liquid fertilizers.

Collateral Management Agreements (CMA)

A CMA allows a producer or trader to secure a loan using physical commodities as collateral. It is a three-party agreement among the product owner/borrowing party, SGS (the collateral manager) and your credit institution. Under a CMA, SGS acts as the custodian of your commodities until they meet the requirements you lay out in the lending documentation. We control the delivery of the goods to our site and the final sale/export according to contract terms and instructions.

SGS takes continuous possession and responsibility of the fertilizer cargo while it is in storage. We guarantee the cargo’s weight upon delivery, eliminating the risk of shrinkage and financial loss. If there is shrinkage, there is no financial responsibility to the product owner or borrowing party. In the case of war or political unrest, the fertilizer cargo is guaranteed. We ensure that risks to the physical control and availability of your cargo are minimized. A bankable SGS CMA will guarantee the weight and/or quantity of fertilizer cargo and ensure it meets local laws that regulate services such as “warrants” and “certificate of deposits”.

Know more about a flowsheet of an SGS CMA (PDF 69 KB)