Why collateral visibility is becoming a strategic priority

International trade finance demand is expected to increase as businesses diversify sourcing and reorganize supply chains. Yet persistent financing constraints and increasingly complex commodity transactions are placing greater emphasis on the reliability of physical collateral. For lenders and commodity traders, independent inventory verification is becoming an important part of managing financing exposure.

Growing demand, persistent financing constraints

The Asian Development Bank’s December 2025 Global Trade Finance Gap Survey estimates that unmet global trade finance demand remained at approximately US$2.5 trillion in 2025, equivalent to around 10% of global merchandise trade.

The survey also found that 80% of participating banks expect trade finance demand to increase as companies diversify markets and reorganize supply chains.

For agricultural commodity businesses, changing sourcing patterns can create additional working capital requirements and introduce unfamiliar storage facilities, logistics providers and counterparties. For lenders, these developments complicate the assessment of inventory-backed financing arrangements, particularly when the underlying commodities are located across different jurisdictions.

The challenge extends beyond borrower creditworthiness and commodity price volatility. The availability, condition and control of physical inventories can materially affect collateral exposure.

The gap between inventory records and physical collateral

Warehouse receipts, stock statements and other inventory documents are important components of commodity financing. However, their reliability depends on the operational controls and verification procedures supporting them.

Risks such as unauthorized stock movements, inadequate segregation, inventory discrepancies and deterioration can affect the value or availability of pledged commodities. These risks become particularly relevant when financing structures involve multiple warehouses or markets where lenders have limited direct operational visibility.

Independent verification can help establish whether reported inventories correspond with physical stock at a particular location and time. However, the distinction between verification, ongoing monitoring and physical control is important.

A one-time inspection cannot establish continued availability throughout a financing period. Similarly, a Stock Monitoring Agreement (SMA) may provide periodic verification and reporting without granting the monitoring party exclusive control over the goods. The appropriate structure depends on contractual responsibilities and the transaction’s risk profile.

Independent collateral management across markets

Control Union supports financial institutions and commodity traders through warehouse due diligence, on-demand stock verification, Stock Monitoring Agreements and technology-supported inventory monitoring. Our international network combines local knowledge of storage operations with independent reporting, helping clients obtain information relevant to their financing arrangements.

As commodity finance structures become more complex, the appropriate level of collateral oversight depends on the assets, locations and risks involved.

External sources:

Asian Development Bank, Global Trade Finance Gap Survey (december 2025): https://www.adb.org/publications/adb-global-trade-finance-gap-survey

International Chamber of Commerce, Global Trade Intelligence (2026): https://iccwbo.org/news-publications/news/icc-trade-register-becomes-icc-global-trade-intelligence-report-to-reflect-expanded-scope/