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Finance Management Module

Finance Module "A"(Short Term Finance)Trade Commodity Finance, we have services to finance our Client's shipment of goods. Our trade finance facilities offer attractive interest rates and are available in most major currencies. Flexible short term fixed rate financing can be arranged for the shipment of goods. The advantages to both importers and exporters are: Available in US Dollars and most major currencies, Has flexible terms and currencies Acts as a useful cash management tool, available in a Fixed term to match that of the underlying trade transaction (not to exceed 180 days). Credit assessment undertaken to supply a credit limit based on your trade needs. Interest can be charged on a discount (establishment) or yield (payment) basis. Repayment is required in full at maturity. Prepayment without penalty is allowed if within a 10 calendar day period prior to maturity. Rollover of the facility is permitted as long as the term does not exceed 180 days. A minimum $200,000 loan amount limit applies, there is no maximum limit.


Finance Module"B"(Long Term Finance)We have conceptualized this module for mostly infrastructure orientation projects as like Highways, Flyovers, Railways, Airports, Bridges, Hydro Powers, Solar or Wind Mills, Rehabilitant Colonies. Build–operate–transfer (BOT) or build–own–operate–transfer (BOOT) is a form of project financing, wherein a private entity receives a concession from the private or public sector to finance, design, construct, and operate a facility stated in the concession contract. This enables the project proponent to recover its investment, operating and maintenance expenses in the project. Due to the long-term nature of the arrangement, the fees are usually raised during the concession period. The rate of increase is often tied to a combination of internal and external variables, allowing the proponent to reach a satisfactory internal rate of return for its investment.


Finance Module "C"(Private Equity Placement NU_F Module)
The Private Equity Placement NU(F) Module operates on your already-completed five-year financial forecast. The NU (F) Module's purpose is to estimate the "pre-money" and "post-money" value of your business, and the ownership splits immediately after the equity financing, based on the businesses' historical and forecasted financial performance, and the new equity investments in the business. For purposes of the NU (F) Module, equity investments include any or all of the following: investments in common stock (or contributed capital); investments in preferred stock; and investments in subordinated debt with warrants. From a processing standpoint the private equity placement NU(F) Module makes a copy of your already completed five-year forecast and uses that copy (and any changes you make to it) for projecting future operating results. As such, your original forecast is preserved. The Private Equity Placement NU (F) Module analyzes the value of your business from the point of view of a minority investor in your business. The NU (F) Module assumes that the new equity investors have investigated your business and operating plan, and believe the business will achieve the financial results forecasted. From a timing standpoint, the NU(F) Module assumes that the new equity investors invest in your business at the beginning of year two (2) of your five-year forecast; and own their investment in your business for the ensuing four (4) years, at which time the business is sold. In order to generalize the analysis across a potentially infinite range of "deal" attributes, the NU (F) Module assumes that the business is sold at the end of year five; and that the buyer buys only the assets of the business and assumes none of its liabilities. Therefore, the sellers of the business (i.e., you and your fellow investors) need to pay off all of the liabilities of the business (and in all likelihood, the income tax owed as a result of the gain realized on the sale of the assets) from purchase price paid to you by the buyer. Because additional equity capital usually supports higher growth rates than can be accomplished without additional equity capital, it is likely that your original five-year forecast (without the new equity capital infusion) will need to be adjusted to reflect increased business opportunities. The output of the Private Equity Placement NU(F) Module consists of:• Private Equity Placement Summary.• Primary financial statements - annual income statements, balance sheets and cash flow statements - showing your businesses' financial performance prior to and after the new equity financing.• Several pages of documentation detailing the key assumptions underlying the analysis, and actual and forecasted financial ratio data and statistics. You may change any or all of the first draft assumptions, including your five-year forecast, to see how the changes impact the Private Equity Placement NU (F) Module.


"Trade Credit Finance
Available in US dollars and most major currencies • Has flexible terms and currencies • Acts a useful cash management tool • Fixed term to match that of the underlying trade transaction (not to exceed 180 days) • Credit assessment undertaken to supply a credit limit based on your trade needs • Interest can be charged on a discount (establishment) or yield (payment) basis • Repayment is required in full at maturity Prepayment without penalty is allowed if within a 10 calendar day period prior to maturity Rollover of the facility is permitted as long as the term does not exceed 180 days • A minimum $200,000 loan amount limit applies, there is no maximum limit.
Benefits
The benefits for importers include the:

Attractive interest rates, Ability to obtain discount from your supplier by paying on an ‘at sight’ basis.
The benefits for exporters include the:
Attractive interest rates
Ability to obtain:
pre-shipment finance for up to 30 days, or post-shipment finance for up to a limit of 180 days including any pre-shipment commodity finance


Module of Financing


Q) What is Purchase Order Financing?
A) Purchase Order Financing is a solution for companies who have purchase orders from strong customers, but lack the cash flow to complete the sales.


Q) Is there an application fee?
A) No, there are no upfront costs to our clients. All fees are collected by International Trade Finance from the buyer’s invoice payments at the close of each transaction.


Q) What is the minimum/maximum value for Letter of Credit?
A) Technically, there is no minimum or maximum Letter of Credit amount underlined, but there is a minimum flat charges of $35,600(Thirty five Thousand USD) on Trade due deligence.


Q) Is there a term commitment?
A) No. If your company’s obligations are met, you may choose to terminate the agreement at any time. Furthermore, your company is not obligated to finance a minimum volume, nor is your company obligated to finance every purchase order.


Q) Does International Trade Finance require personal guarantees?
A) Yes. International Trade Finance will always look at the merit of the transaction first, but we will then look to the strength of your company and its principals to cover any risk we see in the transaction.


Q) Are the Letters of Credit bank-issued?
A) No. International Trade Finance issues it’s own Letters of Credit, but the Letters of Credit are advised through a bank so the beneficiary and beneficiary’s bank know the Letter of Credit is authentic. Regardless of the issuing entity, an authentic Letter of Credit is subject to the all the rules and regulations stipulated by the Uniform Customs and Practice for Documentary Credit ICC (International Chamber of Commerce), Publication No. 500.


Q) Are the Letters of Credit confirmed?
A) No. Confirming Letters of Credit would require the client to cash secure the transactions and most clients are not in the position to do this.


Q) What is the difference between a Sight Letter of Credit and a Usance Letter of Credit?
A) Sight Letters of Credit indicate that the drafts drawn are due upon presentation of the shipping documents. ICC rules allow International Trade Finance and your company 7 business days to review the documents for discrepancies before accepting or rejecting the documents. Upon acceptance, International Trade Finance makes payment to the Letter of Credit beneficiary according to the instructions on the draft. If the documents are rejected, International Trade Finance advises the beneficiary’s bank of the rejection and waits for instructions on how to dispose of the documents. The goods cannot be released if the documents are rejected. Usance Letters of Credit allow a specified number of days from the Bill of Lading date or from the presentation of the documents, before the draft matures. Again, ICC rules allow International Trade Finance and your company 7 business days to review the documents for discrepancies before accepting or rejecting the documents. Upon acceptance, International Trade Finance advises the beneficiary’s bank of the maturity date and makes payment to the Letter of Credit beneficiary accordingly. If rejected, International Trade Finance advises the beneficiary’s bank of the rejection and waits for instructions on how to dispose of the documents. The goods cannot be released if the documents are rejected.


Q) Who qualifies?
A) If you have purchase orders from a credit-worthy buyer, and your gross margins are greater than 20%, you can qualify for Purchase Order Financing. Letters of Credit work for suppliers who do not need prepayment to ship the goods. Suppliers demanding deposits or T/T payments are often will to negotiate better terms with Letter of Credit.


Q) What is Accounts Receivable Factoring?

A) Accounts Receivable Factoring is a facility many of our clients use to avoid waiting 30-45-60 days for buyers on account to pay. A Factor essentially buys your invoices at a discounted rate as soon as it can verify the completed shipment with the account debtor (your company’s buyer). For a small percentage of the invoice, your company can take advantage of immediate cash. It is not necessary to Purchase Order Finance a transaction to qualify it for factoring.


Q) What is a UCC-1 Financing Statement?
A) A UCC-1 Financing Statement is a type of lien that secures a creditor. Many equipment lease companies use a UCC-1 that specifies a machine as collateral. If the debtor defaults on payment, the UCC-1 allows the equipment lease company to repossess the machine. It is typical for banks to use blanket UCC-1s to secure lines of credit, designating the debtor’s assets as collateral, and International Trade Finance utilizes the same. UCC-1s are public records and are indicative of a debtor-creditor relationship. By itself, a UCC-1 is in no way an indication of a delinquent account.

About -
Norstar Unlimited

We are known as "Trade Facilitators" We review how procedures and controls governing the movement of goods across international borders can be improved to reduce associated cost burdens, maximize efficiency.

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