Stock monitoring agreement – SMA

When inventories serve as collateral, it is essential to regularly inspect and record their condition and volume to minimize financial risks. A Stock Monitoring Agreement (SMA) provides continuous global visibility of the status and quantity of commodities and products at storage locations.

At Control Union, we are experts in collateral management, providing periodic verifications as a trusted quality partner and ‘outsourced collateral desk’ for banks and financial institutions.

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    Compliant collateral control with SMA

    A stock monitoring agreement structures stock verification as a governed, recurring process rather than a reactive spot check.

    Control Union operates under ISO 9001 accreditation, which means every inspection cycle follows documented quality procedures and produces auditable records. This framework gives financing parties consistent, standards-backed proof of collateral status across every reporting period.

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    Stock Monitoring Agreement – SMA

    Continuous control & structured assurance.

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    1.

    Global inspection network offering broad, reliable coverage

    Control Union maintains an international inspection network with local surveyors who know regional storage practices, making it rarely necessary to decline a verification request.

    2.

    Collateral desk

    A single point of contact at the Collateral Desk in the Netherlands coordinates all scheduled verifications, removing the complexity of managing multiple regional offices.

    3.

    Lower unit cost through planned periodicity

    Because inspections follow a fixed schedule, Control Union can plan surveyor deployment efficiently and offer better rates than on-demand verifications would require.

    4.

    Flexible scope and reporting per agreement

    Reporting content and inspection scope adjust to specific requirements, so each agreement reflects the exact parameters that matter to the financing party.

    5.

    Active follow-up after every report

    Service delivery continues beyond the report. Control Union reviews findings with stakeholders, revises documentation where needed and ensures clarity before the next cycle.

    Discuss the options with our experts!

    How a stock monitoring agreement works

    A transparent and structured monitoring process aligned with your agreed inspection schedule.

    Control Union Inspections

    Inspection scheduling and coordination

    Control Union requests warehouse contact details and schedules the inspection directly with the location, keeping the financing party informed.

    Control Union Collateral Management

    On-site stock verification

    A local surveyor performs the on-site stock count and sends a preliminary update to the client shortly after completion.

    Control Union

    Reporting and insights delivery

    Control Union issues the full verification report within 72 hours, covering quantity, condition and identified storage risks.

    The proof to your promise

    Financial protection for collateral holders

    Stock monitoring detects misappropriation and damage early, preserving collateral value and giving financiers auditable proof of cargo status.

    • Each verification cycle checks for cargo misappropriation, giving financing parties timely evidence that pledged stock remains at the declared location.

    • Surveyors assess warehouse risks and cargo condition, including pest monitoring indicators, so quality-related value loss surfaces before it compounds.

    • Standardised reports on quantity, condition and storage risks create a continuous compliance trail that supports internal audit and regulatory requirements.

    Stock monitoring measurement collateral
    The real value of stock verification is not the report itself, but what it delivers: insight, certainty and control over risk. That’s where we make the difference.
    Christian Diaz – Control Union
    How can we help?

    Tools & methods

    We apply advanced measurement and analysis techniques to deliver accurate, independent, and finance‑ready verification of stock volumes and condition.

    • Volume inspections

    • Drone photogrammetry

    • 3D LiDar Scanning (Volumentric survey)

    • Tally and SketchUpBulk

    • Density analysis

    • Smart seals

    Frequently asked questions

    Agreements apply to feed, agriculture, biomass and biofuels, coal, minerals and iron ore, cocoa, fertilisers, forestry, precious metals, molasses and vegetable oils, sugar, waste and recycling, fruits and vegetables, and fuel.

    The financing party agrees on a specific periodicity at contract stage. This fixed schedule governs how often Control Union performs each stock verification cycle.

    Reports typically go to all agreement signatories. In most cases the bank, the borrower and Control Union are parties, ensuring transparent collateral oversight for every stakeholder.

    Contact our experts

    Would you like to discuss the many inspection options without obligation? Let us know using the form below. We will contact you as soon as possible.

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