Introduction – Trade Finance for your Customer Orders

04/07/2014
Introduction – Trade Finance for your Customer Orders

Introduction – Trade Finance for your Customer Orders

Global Asset Finance Limited provides trade finance to clients involved in exporting or importing finished goods through:

Providing appropriate finance to fund the transaction;

  • Minimizing risks, particularly credit and political risks; and
  • Managing the supply chain cash flow.

GLOBAL ASSET FINANCE LIMITED comprises knowledgeable and technically proficient professionals and corporate risk managers who understand the commercial pressures and demands of cross-border risk management, finance and logistics.

GLOBAL ASSET FINANCE LIMITED originates structures and finances business where there is an underlying trade. We use a range of financial and risk mitigation solutions to help meet your exact requirements including:

  • Order Finance
  • Procurement Finance
  • Receivables discounting , as part of an overallsolution
  • Letters of Credit confirmations
  • Forfeiting
  • Pre-Exportfinance
  • CommodityFinance
  • Import finance facilities
  • Guarantees and Stand by Letters of Credit
  • Capital Goods Finance and Leasing
  • Credit Insurance

We have fundeda diverserange offinished goods, including:

BBQ’s; Children’s clothing; Commercial Batteries; Replacement Windscreens; Hi Tech cameras; Machine parts to Africa; Gift ware to major retailers; Used Vegetable Oil; Pizza boxes; Garden games and capital goods. Just to name a few.

CORE CRITERIA FOR TRADE FINANCE 

GLOBAL ASSET FINANCE LIMITED and its partners are aprovider of traditional transactional trade finance. GLOBAL ASSET FINANCE LIMITED will purchase finished goods onbehalf of their clients, against confirmed purchase orders from credit worthy end customers.

Client:-

  •        Ideally established business with 2 years track record;
  •        domiciled in most countries;
  • –     Must be a Limited Company.

      Product:-

  •        Ideally finished goods,
  •        We don’t take manufacturing risk;
  •       Trading Margin (Gross Margin) of at least 15%;
  •       At least 8 months shelf life (not perishable goods);
  •      No onerous on-going support obligation by the client.

 Transactions:-

  •          Maximum ten or of 90 days pre-shipment finance, 120 days post shipment finance;
  •          Minimum purchase quantity of £80,000 from anyone supplier over a 2 week period;
  •         Confirmed orders from end buyers (no sale or return or call off orders);
  •         End buyers must be credit insurable by our partners insurer, or offering Letter of Credit or Bank Guarantee from Investment Grade bank. Can be domiciled in most countries;
  • One off transactions only considered if quantumis in excessof £250k GBP or equivalent;
  • Maximum transaction size of £1m to any one end buyer, or £3m to multiple end buyers.
  • Larger trades considered on an Credit & Risk Basis up to £100m;
  • All trades conducted on a disclosed basis to buyer and suppliers.

 Costs and security:-

  •  Cost varies on size and tenor of trade. Typical range is 2% to 3.5% per 30 days for cash use and 1% per month pre-shipment Letters of Credit and not in product;
  • Security may include Debenture, Personal Guarantees or Warranties/Indemnities, or specific debt waivers from existing lenders relating to
  • transactions being financed. Cross guarantees maybe required for group structures or SPVs.

 

 

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