One of the conditions of a successful bid contractor is not only their expertise in the area being bid on but as well that the contractor has the financial capability to perform the work being bid on.

5 Key Steps that can be accessed to win the Bid.

Find a trade finance provider.  We have the experience and contacts that specialize in construction finance.  To succeed in a bid, getting to know your business and the terms of the bid is smart so that we can provide you with the right financing solution or options to succeed on your Bid.

Use a letter of credit (LOC): A letter of credit is a type of trade finance instrument that can be used to demonstrate financial strength when bidding for a tender. A LOC acts as a guarantee from the bank to the seller that payment will be made as long as the seller meets the terms and conditions of the contract. This can be used to demonstrate to the tender authority that the company has the financial capability to complete the project, even if the funds are not yet available.

Offer a performance bond: A performance bond is another type of trade finance instrument that can be used to demonstrate financial strength. A performance bond is a guarantee from a bank that the company will complete the project as specified in the contract. This can give the tender authority confidence that the company will fulfill its obligations even if the funds are not yet available.

Build a relationship with the bank: It’s important to build a strong relationship with the trade finance provider to ensure that the financing solution is in place when the company needs it. This can also help to ensure that the process of securing construction financing is as smooth as possible.

Provide all required documentation: The trade finance provider will require a variety of documentation to assess the company’s financial strength and to issue the LOC or performance bond. This may include financial statements, project plans, and other information related to the project. Make sure all documentation is complete and accurate to avoid any delays or issues with the financing process.

By following these steps, a company can use trade finance to demonstrate financial strength and win a tender, even if the company does not have the financial capability to do so until the construction financing is in place.

It’s important to note that these options should be used in conjunction with a strong business plan and evidence of the company’s expertise and ability to fulfill the contract. They should not be relied on solely to demonstrate financial strength. Additionally, it’s always a good idea to consult with a financial advisor to determine the best financing options for your company.

Under a Bid timeline crunch.  We can help work through solutions for you.   

 

Your Opportunity and Trade Banking

You are looking to expand your product line and supply chain options.  Covid wreaked havoc in your existing supply chain and now post-Covid demand is strong and you are needing to find more supply options.

After doing extensive research you have sourced options for your supply chain however a problem exists is that either you or your supplier is in or gets its product from a country that is politically unstable.

Everyone wants to do the deal however there is an advantage to you if you can find a finance solution way to mitigate the perceived risk of the instability so you can  conclude your company finance and trade funding for your deal.  What types of solutions are there?

Trade Finance Solutions

Trade finance can secure your deal from or into politically unstable countries by reducing the risk of non-or delayed payment. How, by engaging trade finance funding options to finance supply chain, your company can get access to the following:

 

4 Different Trade Finance and Trade Credit Instruments

 

There are 4 different common types of financial products, instruments, and practices that will provide the trade finance solutions for your company financing of your new deal.

 1. Letters of Credit

A letter of credit (L/C) is a commitment by a bank to pay the seller if the buyer fails to do so.  The L/C ensures that the seller receives payment even if the buyer is unable to pay due to political unrest or other issues.  Thus if you are operating in a politically unstable country, sourcing a L/C will give comfort to suppliers to supply you and/or doing so at a better price.

2. Trade Guarantees

A trade guarantee is a type of financial instrument that provides assurance to one party in a trade transaction that the other party will fulfill its obligations. Trade guarantees are often used in international trade to mitigate the risks associated with cross-border transactions, particularly when one of the parties is located in a different country and has limited financial stability.

There are several types of trade guarantees, including performance guarantees, advance payment guarantees, and shipment guarantees. Performance guarantees are used to ensure that the seller will deliver the goods or services as specified in the contract. Advance payment guarantees protect the buyer’s advance payment in the event that the seller fails to perform. Shipment guarantees provide assurance that the shipment of goods will take place as agreed upon in the contract.  Depending on your business criteria, using trade guarantees can be more cost effective than letters of credit.

3. Trade Insurance

Trade insurance is insurance that protects your business against financial loss which could occur from non-payment, fraud, shipping delays, or other circumstances such as political instability creating delay in performance.

The industry can provide credit insurance, political risk insurance, and marine insurance where credit insurance protects against non-payment by a buyer, political risk insurance covers losses resulting from events such as expropriation, currency inconvertibility, or political violence and marine insurance protects against loss during the shipping of goods.

Trade insurance covers off-risk in new cross-border transactions which if provided can create a better price point in the trade itself.

4. Performance Bonds

A performance bond is a form of guarantee provided by a third-party financial institution that underwrites that the seller/principal will fulfill its obligations under a contract to deliver the goods of the specified quality, on time, and at the agreed price and if not, then to provide compensation to the buyer.

In international trade finance, performance bonds mitigate risk and ensure contracts are performed especially where there are large contracts or complex supply chains which make it difficult for a buyer to assess the creditworthiness of a prospective supplier.

How we at International Trade Finance Solutions find your best solution!

Each transaction is unique and our team listens and investigates the best product solution for you at the best price.  To find that solution we invoke the following strategies designed for international trade financing:

Smart Strategies we use in Trade Finance Solutions

Once your needs are clearly outlined, we

1. Engage and pursue our contacts with reputable banks and well-known financial institutions whose stability gives comfort to the other party in your transaction to reduce the risk of default and ensure the stability of your trade finance arrangements.
2. In certain cases we also can engage multilateral development banks such as the World Bank, the African Development Bank or the Export-Import Bank as they provide trade financing and investment guarantees that can help mitigate political risk and increase access to finance for companies engaged in international trade.

Need a Solution Right Now?

We are ready to assist and bring our team and contacts to finalize your contract with the best trade finance solution.  What to know more or apply.

 

We have found that many businesses when looking to expand their business have hit a roadblock with their bank and or other lenders due to the ratios that are being imposed by the lenders.

Trade Finance Helps Businesses

How Trade Finance helps you deal with Inflation, Recession and Government adjustments to monetary policy
After Covid, goverments have reacted to their loose monetary policy that generated inflation to tightening monetary policy to now tame inflation.

Tighter monetary policy pushes local banks to be more strict in their lending by demanding higher net worth and tighter Debt Service Coverage, Capital Gearing and Debt to Asset Ratios.  This tightening makes it more difficult to borrow funds which can slow down your business even if you can.

legitimately cover a new loan to expand your company but if can’t fit within your bank’s loan ratios loans are thus are denied the loan you need.

This is where a Trade Finance company can often come in and save the day. We can legally and properly provide credit enhancement to boost a your company’s balance sheet and get your local lending requirements approved.

If you have any need for this service or questions please feel free to reach out to us.

Contact World Trade Finance:

We will respond within 24 hours with a specialist to assist you.

Many of our clients have found that by using trade finance services they have been able to greatly expand their business, company finance and enhance their annual bottom line profits. Instead of putting the full value of their purchase order up out of company funds they acquire a bank instrument which backs their purchase order for a fraction of the total cost of goods.

Called Trade Funding

There are many types of bank instruments including letters of credit, export finance instruments, import finance instruments, other finance facilities and other trade finance solutions and trade credit.

Supply chain financing allows companies to keep the bulk of your capital liquid for running the day to day operations of their business. The bank instrument acts as a guarantee to the seller and allows them to ship the goods with confidence that they will be paid in full for them.

Trade Finance

By using trade finance most companies find that they can get more product delivered during the course of a year than they could if they used their own funds. These extra orders allow them to negotiate better volume pricing of their sellers. These extra volume discounts alone often far than cover all costs for the trade finance services, without taking in consideration the extra profits from more orders over the year as well! Using Trade Finance to grow your business and your net profits is the way to go!

Do you have a great deal you want to do and your bank is not following suit?  Try our company finance and trade bank for your local and international trade finance needs and finance solution.

Want to know more.  Click here  https://worldtradefinancesolutions.com/contact/

 

 

 

 

 

International World Trade Financing Solutions can open up new trade funding and finance solutions opportunities for your products.  To do that you need a finance supply-chain partner, World Trade Finance Solutions.  We excel at the following critical items you will need to create your solution. 

7 things that make a great trade finance company

In investigating great trade finance companies, the following characteristics are key to you getting the best solution for your trade needs:

1. Strong financial stability: Our funding arm is based in Europe and has $14 billion in trading finance available to secure your company’s financing of goods through trade funding or trade credit facilities.

2. Wide range of products and services: Our team manages the deployment of trade funds for multiple products and services that we tailor to your needs. Our funding resources are set for export finance, import finance, bridge finance, letters of credit, and supply chain finance.

3. Experienced and knowledgeable staff: We bring to your transaction experience having worked and funded international trade finance transactions throughout countries with different legal systems. We take our experience to make your funding and trade banking go smoothly.

4. Should you proceed, we take time to understand your company finance needs, transaction and timelines so that we can mitigate currency fluctuations, credit risk, and timelines.

5. Our 30 years of experience has provided us with strong valued relationships and reputation with our clients, other trade finance companies, and regulators who value our strong compliance and regulatory standards to ensure that all of our trade financings is in line with local and international laws, regulations, and ethical practices.

6. With our main funding source being in Europe, we have created a strong network of relationships in trade banking, trade finance companies, and other relevant parties throughout Europe that allows us to meet the international needs of customers in many countries through trade credit, bank letters of credit, export finance and financing supply chain solutions.

In 2023 our world became a lot more complicated with the war tensions and inflation. With our European network and North American contacts, we have been able to quickly adapt to changing market conditions allowing us to provide innovative trade and company finance solutions to meet your needs.

 

Let’s Engage

So, you have found the deal that makes sense for your business.  You need trade financing.  Whether trade credit, supply chain financing, trade banking, letters of credit, or export financing, be it complex, time-sensitive or complicated, we are your company finance solutions provider to make it happen.

Next steps click here https://worldtradefinancesolutions.com/contact/