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. We've both issued LC's without purchase orders in some cases, paid for goods against incoming LC's, and arranged back to back LC's.
Funding against Letters 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.
Iron Ore and Minerals Finance
Iron ore and other minerals are often exported from outside the United States. We have partnered with a finance group who will provide what's called "last mile finance" for ore transactions in Central and South America.
This has been one of the gaping holes in the finance world. There's a financing gap from the time when miners bring ore to a secure location, but there's still further transport needed to the port so that cargo can be loaded and the LC for payment can be cashed. We now have a partner who can provide this type of finance, subject, as always, to a bit of structuring of the deal to fit, and an incoming letter of credit. This is actually similar to the needs of many in the agricultural community as well, and we may be able to entertain similar needs in that marketplace. When the transaction is a bit more complex, conditions have to be just right for the deal to be funded.
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.