These are just a few examples of transactions we have assisted with our Letters of Credit
Importer of specialty goods contacted ITF because they had received a large Purchase Order for cordless phones from a well-established catalog company but lacked the financial means to complete the transaction. ITF provided a Letter of Credit to the Importer’s supplier in China for the finished goods and the order was drop-shipped directly to the catalog company. The importer invoiced the catalog company and factored with its existing factoring company, which reimbursed ITF in full with a portion of the factoring advance.
A Beach Accessory Company looked to ITF for assistance with filling the company’s Purchase Orders. Its manufacturer was located in Pakistan and the goods were already on the water. The company needed to pay a local bank to obtain the shipping documents and clear the goods upon arrival. ITF wired funds to the local bank according to the D/P terms and the goods were cleared to ship directly to the End Buyer. The company invoiced the End Buyer and a Factor discounted the A/R, sending an advance directly to ITF to pay off the account. The company continued business with ITF by using Letters of Credit issued to the various manufacturers in Pakistan.
Start-up Company, whose principals had previous import experience and an established rapport with its customers, came to ITF in need of Purchase Order Financing. The company had experienced manufacturers with a positive history of producing MP3 players and purchase orders from large retailers. In its first year of PO Financing, ITF opened several L/Cs to multiple manufacturers overseas and the goods were shipped out by air to two major retailers in North America. The PO Financing accommodated customs & duties, freight, and Canada’s GST. ITF has provided this client with a Letter of Credit facility since 2005 including a recent transaction to Wal-Mart for $855,000.
A Home Furnishing Designer was referred to ITF because it was receiving large Purchase Orders from a home furnishing retail chain and needed the capital to pay the manufacturer. ITF provided Usance LCs to the manufacturer and payment to the freight company. Once the goods delivered to the end buyer and invoiced, the client’s Factor forwarded payment to ITF. ITF maintained an ongoing relationship with this client for several years until the retail chain itself started using Letters of Credit that the client was able to transfer to the manufacturer.
Entrepreneur/Inventor was interested in factoring to increase cash flow, but first needed to pay its supplier and pay off a $500,000 bank loan. A container of flashlights was waiting at the Ningbo port and could not be released until the manufacturer received payment or a Letter of Credit. ITF issued an LC to the supplier and bought out the bank, secured by inventory already enroute to the End Buyer. The Factor was soon able to purchase the client’s accounts receivable and reimburse ITF with a portion of the 90% advance.
A Factor contacted ITF because they had a new client, a High-End Clothing Designer, who had purchase orders from several large department stores and needed financial assistance to fill them. The client had a handful of manufacturers, with the majority requiring down payment to begin production. The client had already satisfied the down payments and needed ITF’s LCs to cover the balance. ITF issued the LCs, the goods were air shipped to the U.S. and delivered to the end buyers. ITF was paid off by the Factor.