Financing Growth
for Entrepreneurs

 

 

Industrial Plant :

A client with a contract to supply a pharmaceutical plant to an African country approached Gateway. With a letter of credit that allowed for multiple shipments, an extended time frame and a guarantee of payment by a major US bank, the client looked to Gateway for the procurement of a qualified freight forwarder to help expedite deliveries and for additional letters of credit that allowed for the purchase of the equipment needed to construct the entire plant.

Gateway coordinated closely with the client and the freight forwarder to ensure proper shipment and compliance with the conditions of the purchaser’s letter of credit.

After 15 shipments were successfully completed, the plant was installed.

Industrial Products

A lot of exporters are traders and brokers. Some have found a niche in the international marketplace for used industrial equipment.

Gateway's client from West Texas was selling agriculture equipment around the world. He had a $900,000 letter of credit from Argentina to purchase a used cotton gin, but not the funding to buy it. The West Texan needed a quick turnaround. Gateway stepped in and quickly completed our evaluation of the client's background and transaction. This process typically includes the client's background in the type of goods involved. Our client's 20+ years experience in used agricultural equipment was an important aspect in ensuring proper valuation of the equipment being bought and sold.

Gateway reviewed the conditions of the export letter of credit to determine if they could be met. Our people read letters of credit like lawyers read legal documents because letters of credit regulations and bank interpretation of the letters of credit are an important part of getting paid. Our people talk the language, and can therefore eliminate discrepancies, which can create risk and slow down payment to the exporter.

With Gateway funding, our client quickly dismantled the cotton gin and shipped it to the buyer. Working together, Gateway and the client completed a profitable transaction in just 45 days.

Industrial Plant

A client with a contract to supply a pharmaceutical plant to an African country approached Gateway. The client had a letter of credit, confirmed by a major US bank to guarantee the payment for the plant. The letter of credit allowed multiple shipments and provided the client firm with an extended time in which to deliver the required components.

The client firm was required to source parts for the plant in both the US and in some European countries. Gateway consulted with the client on the selection of a qualified international freight forwarder to expedite deliveries. Gateway also provided letters of credit in order to facilitate the purchase of the various pieces of equipment required to construct the entire plant.

Gateway coordinated closely with both the client and the freight forwarder to ensure proper shipment and compliance with the conditions of the purchaser’s letter of credit. After 15 shipments were successfully completed, the plant was installed and the client moved on to new transactions.

Specialty Oils

Gateway's client was dealing in specialty oils and selling to prime companies in India. Although the foreign buyers were creditworthy, it didn't make sense for a small company to take price risk when selling a price sensitive product overseas. Gateway's answer was to properly structure letters of credit, the payment mecha- nism between the parties, to mitigate this risk. The letter of credit allowed the foreign buyer to have deferred payment terms, while our client was paid based upon the presentation of simple documents that demonstrated that goods had been shipped.

Knowing how to structure a transaction is the key to success in international dealing.  Gateway has the background and knowledge, and of course the funding capability, to complement your export sales.