FAQ

No. Partner banks provide the finance. VSM controls the goods that secure it.

We hold goods worth three to five times the loan value, and report stock positions to the bank throughout the facility, so a fall is seen early.

Stored goods carry all-risk insurance against fire, burglary and flood with the bank as loss payee, and VSM holds professional indemnity cover.

Staff training, spot audits, job rotation, written procedures, consequence management and professional indemnity cover.

For import facilities, non-perishable goods with a shelf life beyond six months.

Yes. The bank sends a pledge instruction to the depository for at least one full lot. The receipt is then marked pledged and cannot be sold or transferred until the bank releases it.

VSM, as the collateral manager designated by the USE Commodities Exchange, verifies and approves each request before the receipt is created.

Only VSM, and only against the bank’s written release order.

Yes. The client sells a portion, the bank confirms the funds and issues a release order for that quantity. Cover is recalculated on the stock that remains.

The bank issues a notice. If the default is not cured, VSM freezes the stock, values it and sells it on the bank’s instruction at or above a reserve price. The proceeds pay the sale and storage costs first, then the bank, and any surplus goes to the client.

Import facilities typically run 90 to 120 days.

Fees are agreed after the site inspection and depend on the goods, location and type of control.

In Uganda, from our office at Plot 19, AD House 9, Kyadondo Road, Nakasero, Kampala.