Hommocks LLC, a financial institution specializing in commodity trade finance, announced the successful closure of its first inventory finance loan to an expanding US carbon black distribution company. This milestone transaction marks a significant step in the company’s expansion into the commodity financing sector, reinforcing its commitment to supporting global trade.

The transaction, valued at $0.5 million, was structured under a revolving borrowing base credit facility to enable the purchase, import and distribution of Indian carbon black by the borrower.  The secured facility is backed by goods-in-transit inventory during its ocean voyage period as well as warehouse inventory during its warehousing period.  Funding was sourced and provided by Hommocks’ lending captive vehicle company, HMX Finance LLC.  The financing will enhance the borrower’s supply chain operations and meet increasing demand for carbon black in the US market.

As traditional banks scale back from trade finance for small and medium-sized enterprises (SMEs), Hommocks is stepping in to bridge the gap. This transaction marks the beginning of a dedicated effort to support underserved commodity businesses in global commerce.

“In recent years, many banks have reduced their exposure to SME trade finance due to regulatory pressures and risk constraints, leaving a funding gap that threatens the competitiveness of smaller businesses,” said Jun Ogasawara, CEO at Hommocks LLC.  “We see a significant opportunity to provide the liquidity and support SMEs’ need to thrive in global markets, and we are committed to being a reliable partner in their growth journey.”