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Collateral Management

SGS collateral management, stock monitoring and cargo-guarantee services provide you with the solutions you need to reduce your operating risk and improve profitability. We ensure that the quantity and/or quality of goods you store or ship 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 to help maximize operations and reduce your financial risk. Contact us when you need:

As your partner in fertilizer commodity trade financing, we ensure our services meet the specific requirements of the credit institution(s) you deal with. If you require traceability of fertilizer cargo along the supply chain, our technical expertise can assist you. We have a global network of trusted stock-monitoring services to reduce your shipping and storage risks. 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.

Collateral Management Agreements (CMA)

A CMA allows you to secure a loan using physical commodities as collateral. It is a three-party agreement among you (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 you meet the requirements of the financial institution. We control the delivery of your goods to our site and the final sale/export according to contract terms and instructions.

SGS takes continuous possession and responsibility for your fertilizer cargo while it is in storage. We guarantee the cargo’s weight upon delivery, eliminating your risk of shrinkage and financial loss. If there is shrinkage, there is no financial responsibility on your behalf. In the case of war or political unrest, your fertilizer cargo is guaranteed. SGS CMAs provide you with additional financial advantages by:

  • Facilitating access to structured trade finance
  • Making trade finance more economical
  • Allowing longer-term revolving financing

Comprehensive and Trusted Custodial Services

Under a CMA, we maintain and protect your fertilizer cargo in our storage facilities following strict internal SGS standards. We secure legal control of the storage facilities by leasing the premises from the owner. Upon receiving your commodity, we provide you with non-negotiable warehouse receipts stating that the goods specified will be delivered to you or to another named person. We can also provide title document of ownership if required.

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 your fertilizer cargo and ensure it meets local laws that regulate services such as “warrants” and “certificate of deposits”. Whether your bulk, bagged or liquid fertilizer cargo is nitrogen, phosphate, or potassium based, SGS is your trusted collateral management partner. Additional services such as sampling, analysis by accredited SGS labs and additional insurance also available.

 

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Stock Monitoring Services

SGS stock monitoring services trace the quantity of your goods shipped and stored along the fertilizer supply chain. Our monitoring is done periodically. Our Stock Monitoring Agreements (SMA) provide you with a cargo quantity record, ensuring transactional transparency and traceability. In this case, SGS does not provide third party control of the cargo and is not financially responsible for any shrinkage that occurs during storage or transport.

SGS stock monitoring services are valuable and trusted tools in managing and enabling transactions globally. Quantity assessments and essential for fertilizer trade financing, and are effective risk reduction procedures. Our stock monitoring experts are available at points of shipment around the globe and around the clock to help you. Additional testing services from accredited SGS labs and more comprehensive third-party custodial services are available upon request.

 

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Warehousing

SGS provides comprehensive warehousing services of your fertilizer cargo. Our warehousing involves the protection of your fertilizer goods in a facility that is under the control and ownership of SGS. As custodian of the goods, SGS assumes control of your cargo and accepts all storage responsibilities.

In our warehousing agreement, the only parties involved are the Depositor (you) and the Custodian (SGS). Benefits include a reduction in storage and operational risk. Leverage our global network of inventory control services and let us help minimize the risk to your fertilizer cargos.

 

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Stockpile Inventory

SGS offers trusted stockpile measurement services for bulk commodities worldwide. We use state-of-the-art technology, including nuclear depth density gauges, to provide independent, accurate knowledge of how much fertilizer is contained in stockpile(s). Our professional staff have years of industry experience, and will work closely with you to ensure a complete and accurate measurement is obtained, no matter where your stockpile is located.

Why Choose SGS?

SGS warehousing, collateral management, stock monitoring and cargo-guarantee services provide you with the assurances you need to reduce risk and maximize profits. We enhance your business by providing a global network of local services to help find solutions for your shipping and storage needs. Partnering with SGS gives you access to our:

  • Globally consistent inspection and verification practices.
  • Internationally recognized analytical methods and procedures.
  • Consistent reporting formats for sellers and buyers worldwide.
  • Independent, bankable services
  • Ethical business practices throughout our global network.

 

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