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.