Loans Against Letters Of Credit
and Other Contracts

Get cash today to meet your changing needs.

Standby Letters of Credit and other binding contracts protect buyers from the risk by not paying for goods before they are delivered. Sellers need to obtain payment so they can afford to buy raw material needed to supply those goods. We can lend you money against your contract so you can make the purchases for goods you need to supply.

Sometimes the seller needs to have the funds before he can supply goods. We bridge the gap by advanced funds guaranteed by those contracts.

We're flexible. We can lend against a SBLC, L/C, BG, MTN, CD, Bond, Treasury Bill, STRIP, Living Trust and many other contracts. The instruments can be cash backed or insurance wrapped.

Funding is also available for other contracts such as music recording, distribution, film and movie contracts. Sports-related contracts can also be financed.

We can also provide solutions for Import/Export contracts for international trade.

What type of Letter Of Credit will not work? A documentary letter of credit is unacceptable for financing. Why? Because if the shipment arrives and is not paid for, the monies are drawn against this LOC, therefore, is unacceptable collateral.

In a perfect world, the buyer exchanges money for goods rendered by the seller at the time the goods are presented. Let’s talk more about international trade. There are a number of challenges that must be overcome:

• How is the buyer protected from paying for goods prior to their delivery?

• How is the seller protected from shipping goods and not being paid?

• What if the seller needs all or part of the money prior to delivery?

The letter of credit is part of a three-party relationship in a commercial transaction:

• The contract between the parties (buyer and seller) pursuant to which the buyer is obligated to obtain the credit for the benefit of the seller

• The contract between the buyer and the issuer of credit, usually a bank or other financial institution

• The undertaking by the issuer in favor of the seller, to honor a presentation by payment or delivery of an item of value

Our Private Placement Program offers an alternative to Letter of Credit Financing.

Send a Funding Request today.