Collateral Management
We secure the stock that secures the loan.
A bank lends against commodities only when it can trust three things: the stock exists, the stock is what the borrower says it is, and the stock won’t move without the bank’s permission.
Confirming those three things — every day, on every transaction — is the work of a collateral manager.
AFIKY operates as that independent third party between banks and their commodity-financed borrowers. We control the warehouse, verify the goods, maintain the records, and release the stock only on the bank’s documented instruction.
How a Collateral Management Engagement Works
The agreement. Before any commodity is received, the bank, the borrower, and AFIKY sign a tripartite Collateral Management Agreement. The document defines the warehouse, the commodity, the storage period, the bank’s security interest, the release conditions, and the responsibilities of each party.
Receipt and verification. When the borrower delivers stock, our team receives it at the agreed warehouse. Each consignment is weighed, sampled, graded against the agreed quality standards, and counted bag by bag. Discrepancies are recorded and resolved before goods are accepted.
Documentation. Once accepted, the stock is recorded against the loan file. The borrower receives a receipt. The bank receives confirmation that its security is in place. The book copy stays with us.
Custody and reporting. Throughout the life of the loan, the stock stays under our control. We report to the bank at the frequency the agreement requires — typically weekly stock statements, with immediate notification of any incident. Stock counts can be requested at any time.
Release. When the borrower repays the loan or completes a sale that satisfies the bank, the bank issues a release instruction. Only then do we authorise the goods to leave the warehouse. Without that instruction, the stock does not move.
Commodities We Handle Under Collateral Management
We take operational responsibility for the storage and handling of your commodity, from the moment it arrives at the warehouse to the moment it leaves under your instruction.
Maize
Rice
Coffee
Cashew nuts
Sesame seeds
Sunflower seeds
Cotton
Wheat
Maize, Rice, Coffee, Cashew nuts, Sesame seeds, Sunflower seeds, Cotton, Pigeon peas, Beans, Groundnuts, Wheat
*For commodities not listed, we’ll tell you honestly whether we have the experience to manage them.