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.

Gateway Clients

Gateway provides off-balance-sheet purchase order financing to importers and exporters serving a range of industries. We have substantial experience with products of all kinds. Typically, our client is a company experiencing a significant increase in demand for its products, which results in a financing strain. Gateway provides transaction-based financing in amounts from $100,000 to $20 million.

Market Demand

When a company experiences extraordinary demand for its products, sometimes it outstrips its traditional financing methods, whether they be supplier credit, investor equity, or traditional bank financing.

Gateway helps bridge the gap in these circumstances.

Initial Contact

When a potential client approaches Gateway, we discuss the client's financing requirements and learn how a potential relationship might be structured. We immediately provide a Client Business Application form and a Personal Financial Statement form.

96 Hour Commitment

Within 96 hours of receiving a completed Client Business Application and related financial information, we will provide a letter of interest to a potential client, specifically outlining how we consider structuring a relationship. If the letter of interest is acceptable to the client, Gateway commences its due diligence, which requires approximately two weeks to complete.

Final Commitment

After successful completion of due diligence, Gateway will provide the client its final commitment to provide trade finance and the associated documentation. Gateway may commit to client relationships up to $20 million.

Transaction

Issuance of letters of credit or other import or export transaction financing can be provided within 48 hours of receipt of the transaction specific documentation.

Cost & Fees

Fees are based on size, duration, and the risk associated with a transaction or series of transactions. Gateway is more expensive than bank financing, but substantially less expensive than either a lost opportunity or an owner's equity dilution. Both the client and Gateway profit from our transactions.