Purchase Order/Letter of Credit

Which PURCHASE ORDERS can be financed?

Those that come from strong US Based, Credit Worthy Customers, or are secured by an Irrevocable, Transferable Letters of Credit issued or confirmed by banks acceptable to us.

For How Long can a PURCHASE ORDER be financed?

1. In Trading Transactions, where you buy and sell a finished product, we finance from the purchase order through the customer receivable, if needed.

2. Work-In-Process Situations, where a product is produced or assembled, we finance generally up to sixty (60) days, but we will consider going longer on a case by case basis.

Where can PURCHASE ORDERS be financed?

Anywhere in the world

How Much of the Cost to produce or comply with a PURCHASE ORDER can be financed?

Up to 100%

What is the minimum or maximum transaction size to be financed?

Between $300,000 and $10,000,000

Note: We will consider financing smaller transactions, provided there is repeat business.

What is taken into consideration for the Company requesting PURCHASE ORDER financing?

The transaction (right product, produced in a timely fashion, in the right quantities to a strong customer), rather than the balance sheet

How fast can we fund PURCHASE ORDERS for new clients?

About three weeks

What is the collateral considered for PURCHASE ORDER financing?

The Purchase Order and its Proceeds (inventory and receivables).

What is the Cost?

Trading Business:

The Cost of Purchase Order Financing varies depending on a number of factors such as the risk of the transaction, projected volume, the length, detail and repetitiveness of each transaction. The cost, however, is generally between 3-5% per month of our exposure.

Work-In-Process Situations:

The Cost of Purchase Order Financing will generally fluctuate between 5 to 6% of the sale price of the goods for the first 60 days. Fees will increase, if the transaction is extended.

Letter of Credit:

If a Letter of Credit is required, a fee of ½% will be charged for the first 60 days.