If any clients are looking for commodity financing / standby letter of credit i.e. MT799, MT760, leased funds etc then we can assist through licensed financial institutions that use top 25 merchant banks including HSBC and Deutche Bank.
CAP Programme (Commodity Assistance Programme)
Here is how it works with ANY Commodity – Gold, Diamonds, Oil, Urea, Corn, Cement, Oil etc
On one side – You need to have a VERIFIABLE SUPPLIER of a Product;
On the other side – You need to have a VERIFIABLE EXIT BUYER.
PROVIDER will validate the Supplier & the Exit Buyer on a Bank to Bank basis.
PROVIDER will then position themselves in the middle and provide full bridge trade finance.
PROVIDER will OPEN a DLC to BUY the product from your Supplier.
PROVIDER will then CONTROL the Product.
PROVIDER will then post a Performance Bond to PROCURE a DLC from your Exit Buyer.
PROVIDER will then SELL the product to your EXIT Buyer thereby‐‐‐‐‐‐ Flip the deal.
PROVIDER will SPLIT the Net Profit with the Client 50 / 50.
PROVIDER will position themselves in the middle as a FIREWALL to insure that the Supplier of the Goods and the EXIT Buyer will NOT know each other, hence securing the Client and thereby making Circumvention an IMPOSSIBILITY.
The bank instrument for the CAP Program is more cost efficient and is a revolving documentary letter of credit and of little difference to an SBLC. The CAP can of course be used for this type of transactions as many times as needed.
Client’s normally have a lot of questions, if need be we can arrange a conference call with our contact in Canada who packages everything for the bank. Prior to that we just need to ensure that the client’s requirements are realistic, whilst there are no upper limits it usually transpires that the higher the numbers involved (upper billions!) that these deals then never happen, the client should have verifiable product, buyer and seller then these guys will make the deal happen.
Once the process is started and the application and MOU returned, the client gets to see the contract and procedures/fees etc so he can ensure he is comfortable with the whole process prior to the deposit of the escrow payment.
The minimum deal size for the CAP program is 5M.
SBLC/leased funds
On the SBLC the minimum is 10M and this would include Swift confirmation bank to bank from an AA rated bank, we can obtain a hard copy only (Bank Letter) SBLC at 5M (no Swift confirmation) but this will not be from an AA rated bank.
For larger amounts on the SBLC and longer term i.e. 12 months, we can obtain a better rate if you let us know what you have been quoted we can compare and certainly improve, given the leverage on the deal sizes you have and timing over 12 months this may be an option.
For example, we can do a 275M leased funds account via HSBC - NY , Houston , Sacramento or Jacksonville . Cost 2.0% for the entire year. MT 799 verifications cost 125K as needed.
If you are looking for commodity financing then please send us your requirements and existing quotes. Please state the commodity, quantity, confirmation of seller POP and exit buyer status and type of financial instrument you are seeking. Email us at: commodx@hotmail.com ref: comassist-190210.
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