US Steel Scrap Metal Asset Based Loan

Business is a commodity trade finance lender/arranger based in New York, USA.
Business is seeking a senior secured lender, to co-lend with Business, on $3 million short-term asset based loan facility for a steel scrap metal trader based in Houston.
The borrower specializes in various steel scrap products such as frac block, forging drops scrap, rail wheel scrap, prepared rebar scrap, shredded scrap, etc.
Below is a summary of a $3 million credit facility.

$3 million asset based loan facility to provide 30 to 60 day, goods-in-transit financing of frac blocks or other scrap steel metals (in containers).
Shipments are from the US, Houston (or Detroit) scrap yard to India discharge port.
Established in 2023 in Houston, the borrower is a US frac block scrap metal exporter.
Borrower’s principal has over 15 years of experience in this niche business.
Frac blocks are used in oil & gas fracking industry and contain chrome, nickel and copper.
Borrower pays domestic US suppliers 3 days after delivery of scrap metal at scrap yard near Houston.
Borrower receives repayment from end buyer on Cash-against-Documents basis at an Indian discharge port (receives payment prior to title release).
Back-to-back transactional finance with frac blocs (ie metal goods) pledged as collateral.
Each advance (“Deal”) is up to 60 days for $200,000 - $2 million per shipment.
Up to 5 Deals may overlap.
Total aggregate outstanding amount of the 5 Deals at any point in time cannot exceed the $3 million credit facility amount.
Each Deal shall be funded 20% by Borrower and 80% Unitranche Loan.
The secured Unitranche Loan is comprised of 85% senior loan tranche and 15% junior loan tranche (Business)
Business will document the agreements and book/administer the loans.
Business junior tranche is subordinated to senior tranche.
Upon a default, Business receives repayment only after senior lender is fully repaid.
Senior Lender interest rate at SOFR + 10%pa with a floor SOFR of 3.5%pa. Current SOFR is 5.3%pa.