A bank guarantee occurs when a company wants to protect their product in case their buyer does not have the money to pay for the shipment. Global Project Funding clients take a bank guarantee out in case they do not receive international payments for their shipments. They agree on a set amount before the shipment takes place.
Commodity trade finance is also structured trade finance. The commodity trade finance uses tools to finance a company if they are in the commodity or goods industry. This tool helps importers to export their products easily. Companies use commodity trade financing to pay their suppliers later so their business runs efficiently.
This financing helps businesses who do not manufacture their products, but contract the services out to another company. Companies use contract financing in the export and import business. This is not a type of financing to build a company’s inventory, but to fulfill it. Contract financing has higher fees, and the advances are lower than other types of financing.
A hard money loan is also a short-term bridge loan. When a client wants a hard money loan, they will use their property as collateral. Hard money loans do not go off credit ratings. These loans often have a high interest rate. Traditional financial institutions do not do hard money loans. Many borrowers who have poor credit ratings will choose this type of financing.
A letter of credit is a legal document that buyers request from one of our Global Project Funding financial institutions to guarantee they will receive payment for their products. The seller needs to produce shipping documents to receive payment. Clients use a letter of credit when they ship their products internationally.