Category Archives for Credit Enhancement

Happy Easter! Creative Funding Ideas $50k to $2b, Tax Credits, Consumer Alert & More Tufo/CFSI 20170414

Greetings from the beautiful San Francisco Bay Area where, Praise God! The drought is over! Daytime temps high 60's low 70's, low humidity, constant breeze - come visit and let's get your viable projects funded!

Our LinkedIn: http://www.linkedin.com/in/joetufo and http://www.workingcapitalfast.com have hundreds of articles, thousands of endorsements and dozens of testimonials.

We have many reliable, trustworthy funding sources with every type of funding possible from:

* Bridge loans/private money/hard money - fast means very expensive rates, short term funding three to five points or more and many times cross collateral,

* PFP which requires 20% cash collateral residential, 30% cash collateral commercial loans, to 40% cash collateral foreign nationals with 3% to 5% annual rates, no call feature, 30 year amortization, 60 banking days minimum to fund, two points + closing costs, and membership required. We have dozens of client/members from CFSI with more than 5,000 total members.

* 200 year old Austrian bank $5million to many billions, 20% cash down, rates 4% USA 5% all other countries, fixed for 25 years, two points plus closing costs

minimum 30 banking days to fund, two points + closing costs

* Chris requires $100,000 to $5million down payment and funds $500,000 to $50million. You can purchase multiple slots to achieve funding goals. Funds in a minimum six months. Chris has funded 54 in the past 18 months.

* PWC has programs ranging from $50,000 to $2billion and requires $7,000 for $50,000 funding to 3% for $2billion funding. Most funding takes four to eight months.

* We have many other lenders available.

Some choose to visit me in person in San Francisco and pay monthly fees for my undivided attention. All fees are credited back against commissions. They are serious about funding and I am committed and serious about their success. Everybody wins.

As always I am available 8am to 6pm Pacific any day but Sundays and holidays at 1.925.352.6000.

Remember:

New Living Translation

But divide your investments among many places, for you do not know what risks might lie ahead.

King James Bible

Give a portion to seven, and also to eight; for thou knowest not what evil shall be upon the earth.

Put your assets in seven to eight buckets: precious metals, cash, stocks/bonds/mutual funds, your own business, income producing real estate, collectibles, retirement programs, Solomon reminds us that we don't know the future and therefore we cannot know what is certain and uncertain regarding our investments. Because of this risk, we are wise to spread our investable income across a variety of investment options. A diversified investor should have no more than 12 to 15 percent invested in any single asset or category.

I taught finance from a Biblical perspective for 17 years. I was securities licensed for 19 years. Be wise.

If you're looking for a safe (insured to $1million with Travelers Insurance), terrific returns (4.9% to 19% for accounts five years with bonuses) https://db202.isrefer.com/go/pfp/a1488/ PFP: Earn Up To 19%, REEP

WHAT I DO: I help small & mid-size business owners get all the tax credits and expense savings they are entitled to.

WHO I WORK WITH: Commercial RE investors, Manufacturers, Hotels, Restaurants, Auto Dealerships, Medical Offices, Senior Centers, Software and Startup companies, and others.

TAX INCENTIVES: Cost Segregation, Property Tax Mitigation, R&D Credit, WOTC.

EXPENSE REDUCTION: Credit Card Merchant, Waste and Work Comp Audit.

WHY IT WORKS: Our proprietary platform & 15 years of experiences guarantee quick and easy process. Since 2004 we have saved clients over $500M.

HOW IT WORKS: I provide an onsite/offsite consultation. In as little as 15 minutes, we will determine for which program you qualify. I even provide an estimate of how much benefit you may be looking at.

WHAT MAKES US DIFFERENT: Qualification is FREE. If we recover benefit and you decide to proceed, we take part of it. We handle possible IRS questioning.

CURIOUS about how much money you are entitled to?

Reach out to me directly on LinkedIn, email me at joe@joetufo.com For WOTC visit http://www.stryde.me/161424 WOTC Tax to $9,600 Per Newly Hired EE

or call direct at 925.352.6000

This will show you the possible savings for your business:

http://www.gmgsavings.net/index.cfm?id=161423 Our Average Client Receives $240,000 in Tax Benefits!

Interested in joining my team? This will show you how to become an agent for Stryde:

http://www.StrydeAdvisors.com/161424 Agent Opportunity: R&D Tax Credits, Expense Reduction

Stryde Call Recording Link Click Here

Other Services: Commercial Funding, Private Money, Asset Protection, Business Consulting

Consumer Alert! (This information could save your life)

 

In the U.S. 125,000 people die from Adverse Drug Reactions, the 4th leading cause of death, plus 2 million are hospitalized and many have lifelong issues. This is due to taking a medication that doesn't suit your body's genetic profile. A very simple DNA test to prevent this has been around for 8 years, believe it or not, however 90% of doctors still aren't using it even though major clinics like Mayo, Vanderbilt, Duke, and Stanford have incorporated it into their procedures. It's a simple Q-tip cheek swab, which is sent to the world class lab we've teamed up with. Within a few days the doctor gets a report that clearly shows what medications the patient can safely take and, most importantly, which they cannot take. Many insurance companies and Medicare* pay for this test (*see company information for full details).

 

A story shared by a Father:

The daughter of one of our representatives suffered for 15 years with medications that caused depression and changed her personality. After discovering our company, she was given this very simple test. The results came back to the doctor and showed that ALL the medications she had been on were all the wrong ones. In fact her doctor said to the father that he was surprised she was still alive. Needless to say, the doctor has corrected the medications and she is like another person today.

YOU MUST ATTEND THIS WEBINAR!(btw...no will talk to you or ask you questions, just grab a cup of coffee, glass of water and listen)

Please click on the link and register - 20 minutes could save your life or the life of a loved one. I'll call you soon but meanwhile, here's the link to register for the live webinar: https://attendee.gotowebinar.com/register/2976351967656433410

  • Monday, 6:00pm PST
  • Wednesday, 6:00pm PST
  • Thursday, 6:00pm PST
  • Saturday, 10:00am PST

Please let me know which day you will be able to attend.

https://www.medxprime.com/jptufo Learn about our MedXPrime programs and services

https://www.financialhalo.com/jptufo Learn about resolving items with the IRS, settling debt, restoring/building credit to 740+ and more

As always I am available 8am to 6pm Pacific any day but Sundays and holidays at 1.925.352.6000.

May God bless you and your family exceedingly, abundantly above whatever you may think or ask! He is Risen! he is Risen indeed!

Here to serve you and those whom you choose to refer.

Sincerely and with gratitude,

Joseph P. Tufo

Cash Flow Specialists, Inc.

Certified Cash Flow Consultant, Certified Capital Specialist

925-352-6000 Cell 800-669-2700 (USA Only)

josephptufo@gmail.com joe@joetufo.com

http://www.workingcapitalfast.com

https://db202.isrefer.com/go/pfp/a1488/ PFP: Earn Up To 19%, REEP

Skype: jptufo

LinkedIn: http://www.linkedin.com/in/joetufo

Facebook: http://www.facebook.com/joetufo

Twitter: https://twitter.com/joetufo

Commercial Loans, Business Funding, WOTC, Cost Segregation, R&D Tax Credit, Property Tax Mitigation, and More...

Providing Honest Answers in a Timely Manner No Matter How Difficult the Situation

Trust, Integrity and Service Here Today Here Tomorrow

You may schedule a visit and meet me in person in the beautiful San Francisco Bay Area

Available 8am to 6pm Pacific Any Day But Sunday And Holidays

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SBLC Procedures With Meet The Banker Option

We deal with different investors with different procedures.

SBLC procedures

With Pre-advise:

  1. 2% in escrow (For amounts $10M and up).
  2. Issuing bank send MT799 pre-advise
  3. 1% gets released
  4. Receiving bank accepts and sends RWA
  5. Issuing bank send MT760
  6. 1% gets released
  7. 5 days later the remaining 8% plus commissions gets paid

 

Without Pre-advise:

1. Client submits application, and countersigns contract.

2. Client bank Issues MT103.23 for payment

3. Issuing bank sends MT760

4. Client bank receives MT760 and releases the line 23 condition.

 

Mix

1. Client submits application, and countersigns contract.

2. Client bank Issues 2% for payment (Either escrow or MT103.23)

3. Issuing bank sends MT760 (Minimum $25M)

4. Client bank receives MT760 and releases the line 23 condition.

5. Within 5 banking days, remaining balance plus commissions get paid.

 

Needs ISIN/CUSIP.

1. Put non-refundable call option fee in escrow

2. ISIN/CUSIPS will be blocked

3. (Option Pre-advise)

4. Within 5 days 6% placed in escrow

5. MT760 delivery of BG

6. Remaining 3+2 balance due in 10 days after delivery of BG.

 

Meet the banker

1. 15% + commissions placed in escrow

2. Meet the banker at UBS NY

3. Get BG/ SBLC issued during meeting.

 

 

#1 procedure:

1) 2% in escrow.

2) We send MT799 pre-advise

3) 1% gets paid from escrow

4) Receiving bank accepts and sends RWA

5) We send MT760

6) 1% gets released

7) 5 days later the remaining 8% plus commissions gets paid

Banks in DR: Citi NA, Scotia, BP

#2

Procedure: setup account. Client verifies. $50k payment for swift. Receiving bank replies with RWA for payment (10 to 12%) plus commissions issuing bank sends swift.

Banks in JKT: SC, HSBC, DB

Bank in US: JPM?

Bank in Europe: Barclay's, CS, DB, HSBC

Top 5 world bank China: Agricultural Bank

?#3

TRUST INVESTMENT BANK LIMITED in Pakistanen or Euro-Exim Bank in UK, Soleil NY

Procedure: funds place in escrow at sending bank. Swift is sent.

#4

HSBC UK. Full 10% plus commissions placed in escrow and released upon confirmation receipt.

#5

Receiving bank sets up ICBPO via MT700 to paymaster account. Barclay's UK sends MT-760. Paymaster calls on the ICBPO. No pre-advise nor phone calls/fax / email.

Some of the important questions would be:

Verbiage?

Issuing bank? (WEB? Top 50?, rating?)

Issuing country? (OECD?)

Are the RMA's in place with receiving bank?

Receiving country? USA? Or Non-USA??

Amount?

Pre-advise?

What escrow agent?

USD or Non-USD?

USA passports involved?

We deal with different investors with different procedures.

Add 2% commissions non USA, 1% USA.

Joe Tufo

925.352.6000

joe@joetufo.com

http://www.linkedin.com/in/joetufo

http://www.workingcapitalfast.com

 

Oh, by the way

As we are embarking on our 11th year in business of providing SBLC, BG and proof of funds, we reflect back on the most common questions we fielded in 2016.

One of the most common questions is "Why does it take so long to set up credit facilities"?

Aside from the fact that our files take less time to get approved than for a regular mortgage application (at substantial lower credit amounts), we like to shed some light on what is involved in the approval process.

First of all, any time a SWIFT is sent, the 2 communicating banks need to have a Relationship Management Agreement (" RMA") in place. When that does not exist, one has to be either opened, or the message has to be communicated through a correspondent bank.

The RMA is a messaging capability enabling members of the SWIFT network to exchange messages over the network. The use of RMA is mandatory for sending and receiving SWIFT messages with the exception of certain types of messages like in the "3" or "9" series.

A RMA can be either unrestricted or, through granular authorizations, be limited to specific incoming message types (often referred to as "RMA Plus").

SWIFT’s RMA functionality replaced the former Bilateral Key Exchange (BKE) and is used to authorize communications between members of the SWIFT network.

In order for banks to use these RMA's, there are certain risks involved, if not properly monitored:

These are the areas that are of extreme importance:

Are there any sanctions in place ?

Transaction screening

Sanctions testing

List management

Name client screening

Restricted countries

Do you Know Your Customer ("KYC ")?

Financial institutions are required to have a central collection of user information.

Identification of customer, Licenses, certificates of incorporation, regulator.

Ownership structure (director info, annual reports)

Type of business and client base including revenues and geography of customers

Compliance Anti Money Laundering ("AML") : Wolfsberg Questionnaire, US Patriot Act, AML controls

Tax information (FATCA) .

Analytics / AML

Compliance Analysis (Bank to bank monitoring)

The Financial Action Task Force on Money Laundering (FATF), is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering. In 2001 the purpose expanded to act on terrorism financing. FATF 16 (FATF Recommendation 16 compliance reporting service would provide metrics to assess a bank’s own and correspondent banks adherence to FATF Recommendation 16 (former SR VII) based on information in the party fields of the FIN messages on the SWIFT network. FATF recommendation 16 requires financial institutions to include adequate and accurate originator information and beneficiary information on funds transfers and related messages, and the information should remain throughout the payment chain. The objective would be to increase transparency on the network by encouraging the industry to put correct data in party fields of transactions.

In the wake of the global financial crisis and countries’ response to it, the international community has been increasingly concerned about de-risking. The FATF understands this term to mean situations where financial institutions terminate or restrict business relationships with entire countries or classes of customer in order to avoid, rather than manage, risks in line with the FATF’s risk-based approach. This is a serious concern for the FATF and the FATF-style regional bodies (FSRBs) to the extent that de-risking may drive financial transactions into less/nonregulated channels, reducing transparency of financial flows and creating financial exclusion, thereby increasing exposure to money laundering and terrorist financing (ML/TF) risks.

A number of countries (like the USA and UK) have mandatory Suspicious Activity Report ("SAR") reporting requirements. When certain criteria are met (for example depositing more that $10,000 in a week in cash in a bank account) the bank has to file a SAR with the authorities.

All these regulatory requirements come with an extremely high price tags for banks, and can cause tremendous delays in processing files.

The days of KTT (the first SWIFT version), where messages were basically faxed / Telexed over, are gone. (Albeit, certain countries with sanctions still find them to be very useful).

The delays that we experience have not only to do with KYC, but more and more with KYCC (Know your Client's Clients) as well.

One of our associates found that out the hard way, when trying to wire his US funds in a USA bank to a prestigious USA law firm. The wire should have taken no more than a few hours for an amount under $10,000. However a few days later he got a call from Wells Fargo that the receiver was not in their Wells Fargo system, so they could not pay, until a full investigation was completed on the recipient. Aside from the fact that Wells Fargo might not have sophisticated tools like Google, or Yahoo at their disposal, it did cause major delays.

One of the services we offer is providing SBLC (USA), BG ( non-USA), SWIFT, and Proof of Funds (POF).

We deal with different investors with different procedures.

 

These five procedures have worked for 11 years on thousands of instruments transactions- some prospects have requested minor alterations.

I have 40+ years of financial services experience, thousands of endorsements and testimonials on my LinkedIn profile. Prospective and existing clients travel from all across the world to meet me in San Francisco. You are welcome too.

 

Sincerely and with gratitude,

Joseph P. Tufo
Cash Flow Specialists, Inc.
Certified Cash Flow Consultant, Certified Capital Specialist
925-352-6000 Cell 800-669-2700 (USA Only)
https://db202.isrefer.com/go/pfp/a1488/ PFP: Earn Up To 19%, REEP
Skype: jptufo
Commercial Loans, Business Funding, WOTC, Cost Segregation, R&D Tax Credit, Property Tax Mitigation, and More...
Providing Honest Answers in a Timely Manner No Matter How Difficult the Situation
Trust, Integrity and Service Here Today Here Tomorrow
You may schedule a visit and meet me in person in the beautiful San Francisco Bay Area
Available 8am to 6pm Pacific

#Money Available, #Next Generation Funding, #Funding, # Franchise Funding, #Medical Financing, #Hotel, #Motel, #Resort, #100% Funding, #Commercial Loans, #Commercial Investments, #Business Consulting, #Business Funding, #Commercial Real Estate, #Debt/Equity Funding, #SBLC, #BG, #SWIFT, #Proof of Funds, # Gold, #Silver, #Precious Metals, #Hard Assets, #Complex Trusts, #Foundations, #Private Banking, #Hard Money, #Private Money

SBLC Procedures

With Pre-advise:

  1. 2% in escrow (For amounts $10M and up).
  2. Issuing bank send MT799 pre-advise
  3. 1% gets released
  4. Receiving bank accepts and sends RWA
  5. Issuing bank send MT760
  6. 1% gets released
  7. 5 days later the remaining 8% gets paid

Without Pre-advise:

1. Client submits application, and countersigns contract.
2. Client bank Issues MT103.23 for payment
3. Issuing bank sends MT760
4. Client bank receives MT760 and releases the line 23 condition.

Mix

1. Client submits application, and countersigns contract.
2. Client bank Issues 2% for payment (Either escrow or MT103.23)
3. Issuing bank sends MT760 (Minimum $25M)
4. Client bank receives MT760 and releases the line 23 condition.
5. Within 5 banking days, remaining balance get paid.

Needs ISIN/CUSIP.

1. Put non-refundable call option fee in escrow
2. ISIN/CUSIPS will be blocked
3. (Option Pre-advise)
4. Within 5 days 6% placed in escrow
5. MT760 delivery of BG
6. Remaining 3+2 balance due in 10 days after delivery of BG.

Meet the banker

1. 15% placed in escrow
2. Meet the banker at UBS NY
3. Get BG/ SBLC issued during meeting.

 

Commissions are an additional 1% USA and 2% Outside the USA.

Sincerely and with gratitude,
Joseph P. Tufo
Certified Cash Flow Consultant, Certified Capital Specialist, Certified Trainer MedXPrime
925-352-6000 Cell 800-669-2700 (USA Only)
https://www.medxprime.com/jptufo Learn about our MedXPrime programs and services
https://www.financialhalo.com/jptufo Learn about MedXPrime/Financial Halo programs and service. Consider enrolling as a new Associate.
https://db202.isrefer.com/go/pfp/a1488/ PFP: Commercial Loans, Business Funding, REEP
http://www.StrydeAdvisors.com/161424 Agent Opportunity: R&D Tax Credits, Expense Reduction
http://www.gmgsavings.net/index.cfm?id=161423 Our Average Client Receives $240,000 in Tax Benefits!
jptufo.worldgn.comDr Helo The BEST wearable technology for health
Skype: jptufo
MedXPrime, Commercial Loans, Business Funding, Cost Segregation, R&D Tax Credit, Property Tax Mitigation, Accounts Receivable Recovery, PGX Testing, and More...
Providing Honest Answers in a Timely Manner No Matter How Difficult the Situation
Trust, Integrity and Service Here Today Here Tomorrow
You may schedule a visit and meet me in person in the beautiful San Francisco Bay Area

DISCLAIMER:

Cash Flow Specialists, Inc. does not constitute or warrants this to be a solicitation. If you are receiving this information, it is due to previous products and services you have inquired upon, which automatically places you in our systems database. The information is for the purpose of education and discussion only. If you feel you have been solicited or have no interest in this particular product however, wish to remain in our system, please provide the person you work with a list of interest, so we may tailor your financial needs accordingly as well as avoid unwanted emails. Sender is NOT a United States Securities Dealer or Broker or U.S. Investment advisor. Sender is a Consultant and makes no warranties or representations as to the Buyer, Seller or Transaction. All due diligence is the responsibility of the Buyer and Seller. This E-mail letter and the attached related documents are never to be considered a solicitation for any purpose in any form or content. Upon receipt of these documents, the Recipient hereby acknowledges this Disclaimer. If acknowledgment is not accepted, Recipient must return any and all documents in their original receipted condition to Sender. This electronic communication is covered by the Electronic Communications Privacy Act of 1986, Codified at 18 U.S.C 1367,2510-2521, 2701-2710, 3121-3126. Also see:http://www.ftc.gov/privacy/glbact/glbsub1.htm virus Gramm-Leach-Bliley Act 15 USC, Subchapter1, Sec. 6801-6809.

#Money Available, #Next Generation Funding, #Funding, # Franchise Funding, #Medical Financing, #Hotel, #Motel, #Resort, #100% Funding, #Commercial Loans, #Commercial Investments, #Business Consulting, #Business Funding, #Commercial Real Estate, #SBLC, #BG, #SWIFT, #Proof of Funds, # Gold, #Silver, #Precious Metals, #Hard Assets,

Problems With Back-To-Back Letters of Credit

Affiliated with a proof of funds provider for over 10 years, we frequently assist with letters of credit.
If you ever want to send a chill down the spine of your banker in the United States, just mention the phrase “back-to-back letters of credit.”

In a typical letter of credit (LC) arrangement, the buyer instructs their bank to issue an LC to the seller. There may be times, however, when a broker is acting as a buying or selling agent or middleman on behalf of the buyer or the seller. In this case, the broker may not want one of the parties to know that the other exists in order to protect their place in any future transactions between the two parties.

Therefore, the buyer instructs their bank to issue an LC to the broker. The broker then must be able to provide an LC to the seller. In order to do this, the broker wants the bank to accept the letter of credit provided by the buyer as collateral to enable them to issue a second letter of credit to the seller. The broker will argue that the proceeds from the first letter of credit can be used to fund the second letter of credit that the broker is trying to get issued.

Most banks in the U.S. will refuse to issue an LC under these circumstances for a number of reasons. First, most banks require that the applicant—in this case the broker—have a line of credit in place. Holding a letter of credit to be used as collateral probably wouldn’t be enough. The bank is going to want to see more, such as a current balance sheet, a record of earnings for three or more years, cash flow projections, a business plan, and a credit rating. The list could go on and on.

Second, the bank won’t want to rely on another LC as their source of funding. The risk is just too high. When documents are presented against the LC that the buyer applied for, discrepancies could very likely be found. Once a discrepancy is found, there is a chance that payment could be refused. If this happens and then compliant documents are presented against the second LC that the broker wants issued, the bank is now in a position where they must make payment, but they don’t have a source for funding that payment. Banks don’t like to find themselves in a position like this.

Third, timing could be an issue. It’s very likely that the seller would present documents against the LC that the broker is trying to get issued before documents are presented against the LC that the buyer issued. Using the one LC as a source of funding for the other could definitely require some type of interim financing, which takes us back to the line of credit issue.

Of course the best course of action is to check with your bank to find out what their policy is regarding back-to-back letters of credit. Just don’t be surprised if they don’t have an appetite for the business.

 

Solutions?
A Transferable Letter of Credit

Let’s just assume that we have a buyer, a broker or middle man, and a manufacturer. At the request of the broker, the buyer applies for a letter of credit. The broker has instructed the buyer that the letter of credit must be transferable. Hopefully the buyer follows these instructions and indicates on the LC application that the LC must be transferable.

The issuing bank, following the instructions of their customer the buyer, issues the LC that contains the clause: “This letter of credit is transferable.” Just what does this mean, and how does it work?

When a letter of credit is transferable, the original or first beneficiary is allowed to transfer all or a part of the value of the letter of credit to a third party, otherwise known as the second beneficiary. In our example mentioned above, the beneficiary is a broker, and they now have the ability to transfer either all or a part of the value of the letter of credit to the actual manufacturer of the goods and can do so without using any of their own line of credit.

The transferring bank, which typically would be either the issuing or advising bank, will actually issue a Transferred Letter of Credit (TLC) and advise it to the second beneficiary. The TLC will look identical to the original LC, with a few exceptions. If the original LC required four documents—a bill of lading, commercial invoice, packing list and certificate of origin—the transferred LC will also contain those same documents and only those same documents.

There are a few things that can differ between the two credits:

  • the value,
  • the unit price if there is one,
  • the expiration date,
  • the period for presentation of documents,
  • the shipment period, and
  • The percentage of insurance coverage if required by the original LC.

In addition, the applicant on the TLC may be shown as the first beneficiary.

If the entire value of the original LC is transferred to the second beneficiary, one could assume that some type of payment was made directly to the original/first beneficiary to compensate them for the transaction. If only a partial transfer was made to the second beneficiary, the original beneficiary retains the right to present their invoice and draft to the bank at the time the second beneficiary is making their document presentation.

The second beneficiary (in our example, the manufacturer) now holds a Transferable Letter of Credit and can anticipate payment if and when they present compliant documents. The second beneficiary is responsible for making the shipment, following the shipping instructions contained in the TLC, and for presenting the required documents to the bank for payment. They are very much in control of the transaction.

Once it is determined that the documents comply, the second beneficiary will receive payment for the value of their invoice less any banking charges. In the event of a partial transfer, the original beneficiary will receive payment for the difference between their invoice and the second beneficiary’s invoice.

This appears to be the perfect solution for a three-party transaction, or is it?

Remember, the second beneficiary has a lot of control. If the shipping documents they present have discrepancies, payment could be refused. Maybe even greater danger, when the second beneficiary is loading the crate and preparing for shipment, they could include a copy of their invoice with a notation that for future shipments please contact them directly, thus cutting the first beneficiary out of any future dealings.

An Assignment of Proceeds

Again, let’s assume that we have a buyer, a broker/middleman, and a supplier/manufacturer. At the request of the broker, a buyer applies for a letter of credit, but this time there is no mention of the letter of credit needing to be transferable. The letter of credit is issued, sent to the advising bank who in turn advises it to the beneficiary, also known as the broker or middle man.

The beneficiary knows that their supplier wants some type of assurance that they will be paid, but the beneficiary wants to maintain a maximum amount of control over the transaction. An Assignment of Proceeds might just be the answer.

Once the letter of credit is received, the beneficiary would approach their bank with the original letter of credit in hand and ask that a specific value of the original letter of credit be assigned to the supplier. For example, if the LC was issued for $45,000, the request for the assignment might be $30,000.

The bank will require the original letter of credit be presented along with the written request for the assignment. The bank needs the original LC so it can endorse the backside of the LC indicating that an assignment has been made to the named party and the value of the assignment. Remember, most letters of credit are freely negotiable, meaning that the beneficiary could present documents to any bank. By endorsing the LC, any bank that might receive documents will know that an assignment has been made.

Once the endorsement is taken care of, the bank will issue a document or letter titled Assignment of Proceeds addressed, in this case, to the supplier. The content of this document will indicate that an assignment of proceeds has been made in their favor with a stated value. It will also indicate that if and when payment is made under the letter of credit, payment will automatically be made under the assignment.

Now that the supplier is holding the Assignment of Proceeds they may feel confident that they will receive payment and release the merchandise to the middleman/beneficiary. If all goes according to plan, the beneficiary arranges shipment, obtains the documents necessary to draw against the LC, presents these documents to the bank, and the bank makes payment to both the beneficiary and to the holder of the assignment of proceeds.

Again, this may sound like the perfect solution for the buyer, broker/middleman and supplier, but could something go wrong with this approach? Unfortunately, yes.

With the Assignment in place, once the supplier turns over the merchandise to the broker/middleman, the supplier does lose control of the transaction. Worst case scenario would be that the supplier goes ahead and ships the merchandise to the buyer but also contacts them proposing that they not use the LC as the method of payment. They might even suggest that instead of the LC, they would be happy to offer open account terms. They may propose that after the buyer has received the merchandise, they could wire transfer payment.

The buyer, not knowing that an assignment of proceeds has been issued, may be thrilled at the prospect of not having to pay their bank an examination fee under the LC and embrace the open account proposal.

Meanwhile, we have the supplier sitting back patiently waiting for payment. After two or three weeks, they may contact the bank asking about the status of payment against the assignment only to hear that documents have yet to be presented against the letter of credit. The supplier will be referred to the line in the assignment of proceeds that payment will be made to them if and when payment under the letter of credit is made.

The supplier then tries to contact the broker/middleman only to find out that the phone has been disconnected, and they appear to have left town. The supplier’s prospect for payment at this point isn’t very good.
For this very reason, suppliers or manufacturers may shy away from this arrangement.

It’s never a perfect world!

We offer these educational articles to help our customers understand the complicated nature of financial industry transactions. If you need help obtaining a SWIFT for a commodity trade transaction, perhaps we can help you. Call us at 1.925.352.6000

 

Sincerely and with gratitude,
Joseph P. Tufo
Certified Cash Flow Consultant, Certified Capital Specialist, Certified Trainer MedXPrime
925-352-6000 Cell 800-669-2700 (USA Only)
https://www.medxprime.com/jptufo Learn about our MedXPrime programs and services
https://www.financialhalo.com/jptufo Learn about MedXPrime/Financial Halo programs and service. Consider enrolling as a new Associate.
https://db202.isrefer.com/go/pfp/a1488/ PFP: Commercial Loans, Business Funding, REEP
http://www.StrydeAdvisors.com/161424 Agent Opportunity: R&D Tax Credits, Expense Reduction
http://www.gmgsavings.net/index.cfm?id=161423 Our Average Client Receives $240,000 in Tax Benefits!
jptufo.worldgn.com Dr Helo The BEST wearable technology for health
Skype: jptufo
MedXPrime, Commercial Loans, Business Funding, Cost Segregation, R&D Tax Credit, Property Tax Mitigation, Accounts Receivable Recovery, PGX Testing, and More...
Providing Honest Answers in a Timely Manner No Matter How Difficult the Situation
Trust, Integrity and Service Here Today Here Tomorrow
You may schedule a visit and meet me in person in the beautiful San Francisco Bay Area

DISCLAIMER:

Cash Flow Specialists, Inc. does not constitute or warrants this to be a solicitation. If you are receiving this information, it is due to previous products and services you have inquired upon, which automatically places you in our systems database. The information is for the purpose of education and discussion only. If you feel you have been solicited or have no interest in this particular product however, wish to remain in our system, please provide the person you work with a list of interest, so we may tailor your financial needs accordingly as well as avoid unwanted emails. Sender is NOT a United States Securities Dealer or Broker or U.S. Investment advisor. Sender is a Consultant and makes no warranties or representations as to the Buyer, Seller or Transaction. All due diligence is the responsibility of the Buyer and Seller. This E-mail letter and the attached related documents are never to be considered a solicitation for any purpose in any form or content. Upon receipt of these documents, the Recipient hereby acknowledges this Disclaimer. If acknowledgment is not accepted, Recipient must return any and all documents in their original receipted condition to Sender. This electronic communication is covered by the Electronic Communications Privacy Act of 1986, Codified at 18 U.S.C 1367,2510-2521, 2701-2710, 3121-3126. Also see:http://www.ftc.gov/privacy/glbact/glbsub1.htm virus Gramm-Leach-Bliley Act 15 USC, Subchapter1, Sec. 6801-6809.

 

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Looking for proof of funds for your next (commodity) trade?

Looking for proof of funds for your next (commodity) trade?

You can have access to amounts between $100,000 to $2 Billion
World Wide, Funds are in a bank account with your name or company name.

CASH FLOW SPECIALISTS, INC. through our business relationships provides Proof of Funds to our clients for credit enhancement purpose. Blocked funds are in an account with the client listed as the funds owner for a pre-determined amount of time.

These can be:

  • Bank Comfort Letters (BCL)
  • Bank statements
  • SWIFT MT799
  • SWIFT MT760
  • SWIFT MT199
  • Bank Guarantees
  • Stand By Letter of Credit (SBLC)
  • VOD (1006)
  • Escrow Accounts (with major escrow companies)

It is important to understand that this is not a loan and the money will never move from the account. It is blocked, but free and clear.

You receive Verification of the funds and proof that the funds are yours (for verification purpose only). There are different ways to verify those funds. Some banks or financial institutions let you go to your local bank or branch. Some have a dedicated National 800 number, while others use online services.

The cost for this service varies according to the POF amount, the type of account as well as the length of time needed to show the funds.

We must be satisfied with your capacity to pay the up front fee for providing Proof of Funds (known as the Arrangement Fee).

Payment of the Arrangement Fee in the form of a “success fee” is not acceptable.

Any use including:

  • Net worth Requirement
  • Facilitate buy / sell arrangements
  • Show of Down payment to get REO offers accepted
  • Bond Requirement
  • Proof of Liquidity
  • Proof of Collateral
  • Reserved or Blocked funds for investments

Minimum of only 1 month with discounts for multiple months.
Brokers paid for referrals!

Proof of Funds Program Highlights:

  • Accounts available from $100K to $2 billion
  • Money Market funds seasoned for six (6) months
  • No Credit Check or Financial Statements Required
  • Funds in an account under client’s name and signature
FAQ:

  • 30 & 60 day accounts, with discounts provided for renewal terms
  • Standard bank Verification of Deposit provided for all accounts
  • Bank accounts opened and confirmed in writing by bank officers
  • SWIFT MT799/760 confirmation option available in Offshore Banks
  • Brokers paid for referrals
Because of our work with leased instruments, we have frequent contact with commodity traders, Private Placement Platform Facilitators and buyers / sellers of “paper”. Since we work directly with these numerous sellers of SBLC, BG, Bonds and MTN’s, we are happy to introduce you to these sources.

Program Highlights

Proof of Funds Program Highlights:

  • amount available ranging from $100K to $2 + billion.
  • Funds seasoned for up to six (6) months.
  • Rates starting at 2% per month.
  • 30, 60 & 90 day accounts, with discounts provided for renewal terms.
  • You have access to the paperwork in less than 24 hours after confirmation.
  • Funds in an account under your name and signature.

Types of accounts:

  • Domestic Brokerage Firm:
  • Domestic Banks:
  • Brokerage Accounts
  • Prime Western Europe Banks:
  • Domestic Hedge Investment (NON BANK)


Types of confirmation

  • Standard verification of deposit (VOD): the customer faxes over a form to the financial institution. They then look up the account information, and fill out a standard form.
  • Bank-to-bank electronic confirmation.
All accounts require full client disclosure and are opened in strict compliance with the provisions of the International Money Laundering Regulations and the US Patriot Act.
Sincerely and with gratitude,
Joseph P. Tufo
Certified Cash Flow Consultant, Certified Capital Specialist, Certified Trainer MedXPrime
925-352-6000 Cell 800-669-2700 (USA Only)
https://www.medxprime.com/jptufo Learn about our MedXPrime programs and services
https://www.financialhalo.net/jptufo Learn about MedXPrime/FH and enroll as a new Associate
https://db202.isrefer.com/go/pfp/a1488/ PFP: Commercial Loans, Business Funding, REEP
http://www.StrydeAdvisors.com/161424 Agent Opportunity: R&D Tax Credits, Expense Reduction
http://www.gmgsavings.net/index.cfm?id=161423 Our Average Client Receives $240,000 in Tax Benefits!
jptufo.worldgn.comDr Helo wearable technology for health
Skype: jptufo
MedXPrime, Commercial Loans, Business Funding, Cost Segregation, R&D Tax Credit, Property Tax Mitigation, Accounts Receivable Recovery, PGX Testing, and More...
Providing Honest Answers in a Timely Manner No Matter How Difficult the Situation
Trust, Integrity and Service Here Today Here Tomorrow
You may schedule a visit and meet me in person in the beautiful San Francisco Bay Area

#Money Available, #Next Generation Funding, #Funding, # Franchise Funding, #Medical Financing, #Hotel, #Motel, #Resort, #100% Funding, #Commercial Loans, #Commercial Investments, #Business Consulting, #Business Funding, #Commercial Real Estate,

MyTaxHalo Business Summary Get The IRS Off Your Back!

MyTaxHalo Business Summary

Every year, more and more people are targeted by the IRS for audits and liens against their assets and income. For Financial Halo Associates, this represents an opportunity to help people take on the one government agency that is most feared by Americans, the Internal Revenue Service. Helping people resolve IRS challenges is not only emotionally very satisfying but can be very financially rewarding as well.

https://www.financialhalo.net/jptufo Learn about MedXPrime/FH and enroll as a new Associate

The market for helping people with IRS problems is growing as the agency becomes more aggressive than ever in taking action against U.S. citizens. IRS liens filed against taxpayers jumped 60% since the start of the national recession, according to a new federal annual report by the National Taxpayer Advocate, part of the Taxpayer Advocate Service, an independent organization within the IRS. The increase in lien filings continued a longer trend in which the report said the 2010 total soared 553% higher than the number filed previously.

https://www.financialhalo.net/jptufo Learn about MedXPrime/FH and enroll as a new Associate

The IRS filed more than 1 million liens in federal fiscal year 2010, the highest in nearly two decades and a spike from the nearly 684,000 filed in the year ahead of the recession's December 2007 start.

The taxpayer advocate report concluded, "The IRS has continued the trend toward more lien filings despite the worst economy in at least a generation" — with serious financial impact on some of those unable to pay.

https://www.financialhalo.net/jptufo Learn about MedXPrime/FH and enroll as a new Associate

Nina Olson, who heads the Taxpayer Advocate's office, stated that "Lien filings can badly damage or destroy a taxpayer's creditworthiness because they are picked up by the credit-rating agencies and retained on the taxpayer's credit reports for seven years from the date the tax liability is resolved, or longer if it is not resolved,". For those with IRS liens filed against their property, that can mean it's harder to get a job, find affordable housing or buy insurance.

https://www.financialhalo.net/jptufo Learn about MedXPrime/FH and enroll as a new Associate

This is where you come in. As a Financial Halo business Associate, there are hundreds of thousands of people who need help in finding a way to defend themselves from the IRS. You can be a beacon of light in a sea of financial despair, helping people who have nowhere to turn find answers. You can literally save them not just tens of thousands but hundreds of thousands of dollars by referring them to MyTaxHalo. Remember, Nina Olson with the Taxpayer Advocate Service? She said, "If you do not know your rights, it can feel like you are being run over.”

https://www.financialhalo.net/jptufo Learn about MedXPrime/FH and enroll as a new Associate

Be a part of the solution by building your Financial Halo business helping people save themselves from financial ruin and the aggressive, bullying tactics that are often used by the IRS against people. You will feel like a hero because that is exactly what they need. Someone who simply cares enough to reach out and steer them in the right direction. You get to do that AND get paid exceedingly well. That is about as good as it gets when it comes to earning a living.

https://www.financialhalo.net/jptufo Learn about MedXPrime/FH and enroll as a new Associate

Sincerely and with gratitude,

Joseph P. Tufo

Certified Cash Flow Consultant, Certified Capital Specialist, Certified Trainer MedXPrime

925-352-6000 Cell 800-669-2700 (USA Only)

josephptufo@gmail.com jptufo@icloud.com joe@joetufo.com

http://www.workingcapitalfast.com

https://www.medxprime.com/jptufo Learn about our MedXPrime programs and services

https://www.financialhalo.net/jptufo Learn about MedXPrime/FH and enroll as a new Associate

https://db202.isrefer.com/go/pfp/a1488/ PFP: Commercial Loans, Business Funding, REEP

http://www.StrydeAdvisors.com/161424 Agent Opportunity: R&D Tax Credits, Expense Reduction

http://www.gmgsavings.net/index.cfm?id=161423 Our Average Client Receives $240,000 in Tax Benefits!

https://about.me/jptufo/

Skype: jptufo

LinkedIn: http://www.linkedin.com/in/joetufo

Referral Key: http://www.referralkey.com/joetufo

Facebook: http://www.facebook.com/joetufo

Twitter: https://twitter.com/joetufo

Social Media Ideas: http://www.TopLinked.com/a/?a=141714

MedXPrime, Commercial Loans, Business Funding, Cost Segregation, R&D Tax Credit, Property Tax Mitigation, Accounts Receivable Recovery, PGX Testing, and More…

Providing Honest Answers in a Timely Manner No Matter How Difficult the Situation

Trust, Integrity and Service Here Today Here Tomorrow

You may schedule a visit and meet me in person in the beautiful San Francisco Bay Area

Disclaimer

“Financial Halo, LLC has entered into agreements with providers of the services and products represented on this website. These providers are authorized by Financial Halo to enroll any Financial Halo client on behalf of Financial Halo Associates who may wish their services. Financial Halo encourages its clients and customers to do their full diligence prior to engaging the services of its provider companies. Financial Halo, LLC reserves the right, at its discretion, to change, modify, add or remove any service program or provider at any time in order to improve the services offered. Financial Halo LLC, its representatives, agents and employees do not provide personal, medical, health-related, business, legal, financial or tax advice.”

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