The below case studies are illustrative of the transactions that Stern typically evaluates:<\/p>\n
\u25cf Scrap Metal Trader<\/u>.\u00a0 A U.S.-based scrap metal trader, the beneficiary of 90-day deferred letters of credit (\u201cLC(s)<\/u>\u201d) from his Pakistan and Bangladesh-based buyers, needed assistance paying his U.S.-based suppliers who, in turn, demanded payment on delivery.<\/p>\n
Stern offered a financing line of $1 million \u2013 which would have allowed the scrap metal trader to pay his supplier \u2013 while also discounting the Pakistani and Bangladeshi LCs.\u00a0 This would have solved the trader\u2019s problem by removing the funding gap between the time he had to pay his supplier and the time he received payment from his buyer.\u00a0 Additionally, by discounting the inbound LCs, Stern could remove the risk of non-payment by the buyers.\u00a0 At the same time, Stern \u2013 leveraging its network of freight forwarders \u2013 planned to arrange for the shipment of the scrap metal between the U.S. and South Asia.<\/p>\n
\u25cf Coffee Seller<\/u>.\u00a0 An Australian-based coffee trader had a well-established business in his home country and wanted to expand abroad.\u00a0\u00a0 While his suppliers were paid on delivery, the trader nonetheless sought to provide 90-day credit terms to his U.S. buyer.<\/p>\n
Stern offered a $150,000 standby letter of credit (\u201cSBLC<\/u>\u201d) facility for the coffee trader\u2019s buyer, under which funds were to be advanced to the trader. The trader would then receive funds on delivery, and the buyer would be provided a 90-day window to make payment.\u00a0 As this was a re-occurring transaction, the SBLC was proposed as a revolving facility.\u00a0 This would free up critical cash for the trader, enabling him to expand his business and seek other buyers across the world.<\/p>\n
\u25cf Equipment<\/u>.\u00a0 A U.S.-based equipment manufacturer had a contract with an agency of a foreign government.\u00a0 In order to fulfil the contract, the agency required the manufacturer to provide a performance guarantee (\u201cPG<\/u>\u201d) \u2013 but the PG could only be issued by a bank in that foreign country.<\/p>\n
Through Stern\u2019s network of correspondent bank relationships, Stern was able to effectuate what is commonly referred to as a \u201ccounter\u201d performance guarantee, whereby the PG would ultimately be issued by a bank in that foreign country.\u00a0 This solution enabled the manufacture to fulfil the contract and to maintain his relationship with the foreign government agency.\u00a0 Stern also extended the customer credit terms so that he had the liquidity to facilitate transactions with other clients.<\/p>\n
\u25cf Plastic<\/u>.\u00a0 A UK-based trader sourced plastic products from East Asia and sold them to a Uganda-based company, which paid 180 days after delivery.<\/p>\n
Stern assisted in structuring the deal, using bills of exchange avalized (or guaranteed) by a Ugandan bank.\u00a0 Stern then planned to discount the bills, pay funds in advance to the supplier, and remove the non-payment risk to the supplier. The trader would receive funds immediately, and the buyer would still be able to receive the 180 day-credit term he required.<\/p>\n","protected":false},"excerpt":{"rendered":"
The below case studies are illustrative of the transactions that Stern typically evaluates: \u25cf Scrap Metal Trader.\u00a0 A U.S.-based scrap metal trader, the beneficiary of 90-day deferred letters of credit (\u201cLC(s)\u201d) from his Pakistan and Bangladesh-based buyers, needed assistance paying his U.S.-based suppliers who, in turn, demanded payment on delivery. Stern offered a financing line […]<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-543","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/sternbank.com\/ru\/wp-json\/wp\/v2\/pages\/543","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sternbank.com\/ru\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/sternbank.com\/ru\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/sternbank.com\/ru\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/sternbank.com\/ru\/wp-json\/wp\/v2\/comments?post=543"}],"version-history":[{"count":9,"href":"https:\/\/sternbank.com\/ru\/wp-json\/wp\/v2\/pages\/543\/revisions"}],"predecessor-version":[{"id":1866,"href":"https:\/\/sternbank.com\/ru\/wp-json\/wp\/v2\/pages\/543\/revisions\/1866"}],"wp:attachment":[{"href":"https:\/\/sternbank.com\/ru\/wp-json\/wp\/v2\/media?parent=543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}