BUYING GOODS FROM ASIA AND SELLING THEM TO EUROPE
The company MASSPROD, based in Shanghai, has received an order from a new client based in France. The buyer is a fast growing company with a constant need for cashflow to support its growing demand in manufactured goods. In order to cut its costs, the French buyer has contacted MASSPROD to produce several references of its catalogue. MASSPROD would in other times be happy to take on new business, but its lack of information on that new collaborate and the slippery state of world economics advise for caution.
Lea Trade Finance can help the French buyer fulfill its payment by purchasing the order on its behalf. In order to do so, MASSPROD will label its proforma to Lea Trade Finance, in exchange of which a Letter of Credit will be opened between banks of both parties. MASSPROD will then be able to launch the production with the guarantee to get the funds within the validity of the Letter of Credit. On its side, Lea Trade Finance gets the guarantee to be debited against proof of shipment of the goods. The French buyer is less involved during the process, which gives it time to focus on its commercial activity. The buyer is solely asked to acknowledge receipt of the goods for which it will be invoiced by Lea Trade Finance within its local payment terms. Its cashflow remains unharmed and its trading relation with MASSPROD has started off on the right tracks, making future orders easier and faster to process.
BUYING GOODS FROM EUROPE AND SELLING THEM TO ASIA
ASIATRADE is a Trading company based in Hong Kong. It is planning on importing luxury goods from Europe to sell in various Asian cities where people have grown wealthier and are showing interest in products of exception. In order to take full advantage of this niche market, ASIATRADE wants to make sure it deals with the right suppliers and in the best conditions.
Lea Trade Finance can help ASIATRADE by sourcing a list of the best suppliers in Europe for its specific needs, and can offer some financial solutions to pay for the goods and their freight without risking to delay deliveries. Lea Trade Finance can serve as a guarantee on the local ground to convince producers to fulfill the orders in exchange of local bank deposits.
|