We've arranged financing in a number of categories. As you review this page, you'll find typical transactions like factoring or purchase order finance, as well as not so typical transactions like last mile financing for certain metal ores.
We've also arranged transactions based around letters of credit. In cases where we've both issued LC's without purchase orders, the shipment itself serves as security, and we won't release the shipment until the client has paid for the documents.
We are currently working on deals involving scrap metal, electronic equipment and agricultural commodities. In these cases, the buyer is issuing a documentary letter of credit. We are, in turn, causing the advising bank to issue a confirmed payment guarantee to the supplier's bank to complete the cycle. This process is an improvement over the typical transferable LC or back to back letter of credit.
We have arranged finance for one company which exports new autos from the United States to China. The process is fairly simple. The buyer opens a letter of credit. We buy the cars, obtain the title, have them shipped to the port of loading, and off they go. Once the cars are loaded onto the ship, we're able to cash the letter of credit against shipping documents, and the transaction is complete.
Factoring and Purchase Order Deals
We arranged a complete package of financing for a plus-size and missy-size designer label manufacturer based in the United States. Our client manufactures here in the US. Through separate finance partners, we arranged a line that allows our client to purchase his special fabrics and pay the local factor, and then arranged a factoring line that will take out the manufacturing loan when goods are shipped.
We arranged an international factoring line for a UK-based food importer who sells to top companies in the UK and Europe. Through this line, they are now able to boost their sales substantially over the £1,000,000 they have been selling every several months. Banks would not finance this company because of their short operating history of about one year, in spite of the experience of the principals.
Purchase order finance and factoring for a UK-based company that sells various electronic items to top retailers like Tesco. Through the finance package we set up, our client uses very little of their own cash to finance over £2 million in monthly turnover.
A major retailer gave our client a substantial order for toys for the holidays, and agreed to feature the toys prominently in the holiday catalog. But the retailer's terms included the right to return 50% of the order to our client, in case sales were disappointing. Nonetheless, we were still able to arrange payment to the supplier so that the toys would arrive timely to match catalog delivery.
Letters of Credit Opened
Various letters of credit opened to Chinese electronics suppliers on behalf of a UK-based importer
Letters of credit opened to Chinese kitchen appliance suppliers for resale into the UK
Letters of credit opened to Bangladeshi garment suppliers for import into the United States and the UK
letter of credit opened to Chinese supplier of oilfield equipment for import into the Baltics for a Baltic trading company
$7 million standby letter of credit for import of gold from Ghana to the United States, and smaller standby LC's for the same product.