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Updated: 2017-10-18T12:21:06.639-07:00

 



Importance of Trade Finance & Structured Trade Finance for Importers and Exporters of Commodities?

2010-09-13T00:52:00.584-07:00

Trade finance is the method importers and exporters of commodities and goods use to finance their business. Basically, trade finance has been in existence for many thousands of years - and one can trace the roots of trade finance and structured trade finance right back to the early days of China and the silk route, Mesopotamia and Europe. Trade Finance was around long before Europeans settled in America and long before the world's stock markets were born!

Today, trade finance is a massive, multi-billion dollar business. As the world trades more and more goods and commodities are bought and sold, so more and more banks and financiers are needed to lend money to finance the purchase and sale of these goods and commodities - right across the global supply chain.

How is trade finance and structured trade finance useful?

Take an example: imagine you are a trader in cocoa beans in Cote d'Ivoire, buying beans locally and selling them to foreign buyers. To make your purchases, you will need to have money to buy the cocoa up-country in Africa, prior to their export. Where will you find money to make these purchases? And supposing you are the international buyer; the shipper, purchasing from cocoa traders all over West Africa - how will you finance your transactions, which at any one time may exceed your cash reserves? What might be supported by your bank who, if they are traditional lenders, will only lend against your balance sheet?

This is where trade finance and structured trade finance is useful - your business can grow and develop if you use the services of a specialist trade finance department who will structure trade finance structures can be tailored to your needs, using the collateral of the goods you are trading, rather than your own balance sheet or other assets.

What is the basis of trade finance and structured trade finance?

Goods and commodities have an underlying value of their own. For example, if cocoa beans are worth many hundreds or even thousands of dollars per tonne, then once a big pile of beans is accumulated in one place; in a warehouse or on a ship, it is worth a lot of money. A bank may lend money against the total value of the beans, minus some amount to take account of price and other risks
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It is the same for every commodity or trade good which is resalable. A bank will make a loan as long as the collateral "adds up" and as long as the bank is comfortable with the way the deal is structured between both the buyer and the seller. Of key importance is that if something goes wrong the bank is able to take possession of the commodities or goods and sell them to realise monies to repay any loan amounts outstanding.

Basically, when we talk of structured trade finance we are talking of deals whereby complex arrangements are put in place to ensure a bank can take possession and sell the underlying capital used for the loan; in this example, the goods and commodities themselves.

Is trade finance complicated?

No. It is a simple business although the structures used in trade finance in more complex deals require a lot of work for all of the parties involved. This is why the total loan amount of a structured trade finance loans must be high enough to warrant the involvement of highly-paid bankers, lawyers and other advisers.

Where can I find out more about trade finance and structured trade finance?

Day Robinson Group has offices in London and New Delhi and is one of the world's foremost providers of training in the trade finance sector. For more information, you can visit our site at: http:///www.dayrobinson.com or you can contact the author of this article, Dan Day-Robinson at Day Robinson International in the UK (ddr@dayrobinson.com).




Free Government Grants - 9 Reasons You Should Apply Now

2008-10-04T22:17:57.984-07:00

The solution for your financial problem is free government grants. I can think of 9 main reasons, you shouldn't wait to apply:

1. Government grant money is free. You never have to pay it back. Can't ask for more, than that.

2. There is no credit check, when you apply. It doesn't matter if you have bad credit. Even if you had bankruptcy in the past, you can still apply. That's why you should apply for grants It could be your only solution.

3. Government grants are tax free. All the money you receive goes into your pocket.

4. Everybody can receive government grants You just have to be a U.S. citizen.

5. There are billions of dollars available as government money. There are thousands of grant programs available from the federal government or from your state. There are probably several programs that apply for your situation.

6. There are many different types of government grants Probably you heard about business grants or educational grants. There are also housing grants, minority grants, woman's grants, health care grants, personal need grants to name a few. One of these grants is the one you are looking for.

7. You can apply for more than one type of government grant. For example you can apply for a housing grant and a medical grant.

8. It's easy to find these grants Some websites offer a grant directory. It guides you through your search.

9. It's easy to apply. Some websites offer bonuses, like grant writing software package.

If you are serious about finding the right free government grant click on the link below:

Click Here To Find the Right Government Grants.

Mark Sleck

Article Source: http://EzineArticles.com/?expert=Mark_Sleck



Free Government Grants - Use Online Grant Directory to Search For the Right One

2008-10-04T22:17:27.001-07:00

A lot people are searching for government grants One reason is that this type of economic aid has a lot of advantages for people like you and me with limited income. One example is the senior citizens who live on social security. Fortunately there are billions of dollars issued as grants each year. You have a very good chance to receive one or more grants.

What are the real advantages of free government grants? One of them is that every body can apply for them, you just have to be a U.S. citizen. Grants are not loans. The money is yours you never have to pay it back. Even if you have bad credit, or you had bankruptcy in the past you can still receive government grants Grants are also tax free. All the money you receive is yours.

When you search for the right grants you have to educate yourself about grants You will find out, there federal grants, state grants. There are also grants issued by private foundations. There are also different type of grants like business grants, educational grants, housing grants, medical grants, minority grants, woman's grants and personal needs grants. One ore more could apply to your situation. If you apply for one type of grant, it doesn't mean that you can't apply for an other type in the same time.

One of the tools which can speed up your search is an on-line grant directory. On-line grant directories also can assist you not only in finding the right grant, but they can guide you through the application process.

When you search for free government grants use an on-line grant directory to speed up the process. They can also help you in the application process.

If you are serious about finding the right free government grants click on the link below:

Click Here to find the right government grants with an On-line Grant Directory

Mark Sleck

Article Source: http://EzineArticles.com/?expert=Mark_Sleck



Buying Stocks From Sharebuilder

2008-10-04T22:17:00.912-07:00

Investing in stocks has become as easy as ever. You can now invest in any stock you want over the internet. There are several online investment brokerage firms available that allow you to inexpensively invest in stocks online. You just have to place your order and they buy the stock you want much cheaper than if you went with a full service brokerage firm.

My favorite online stock investment brokerage firm is Sharebuilder.com. I have been using them for the past two and a half years and I have been very pleased thus far. Sharebuilder offers stocks for $4 at any amount. This means you don't have to buy a roundlot (100 stocks) or even just one stock. Instead of putting in how many stocks you want, you can put in the amount of money worth of stock you want. For example, you can say you want $200 worth of a stock priced at $43.54. You would get approximately 4.5934 stocks.

The stocks only cost $4 for a regular trade. This means if you buy $100 of Google, you pay $4. If you buy $1,000 of Google, you still pay $4. The $4 comes out of what you put in, so you don't have tack the commission on top. This commission fee is based on each stock meaning you can't buy $100 each of Google, CVS, Johnson & Johnson, and Apple and pay a $4 commission. You would pay the $4 for each stock, so for this investment, it would cost you $16. That is still a bargain.

Another great benefit is that there's no minimum investment. A lot of other online investment firms and other brokerage firms require a minimum deposit in your investment account, usually $1,000 or more. You can start with just $10 with Sharebuilder if you really want to. It's up to you how much you want to invest, but remember the lesser you invest, the higher your commission cost is. To demonstrate, if you buy $10 of Apple, you pay $4. This would mean you are paying 28.5% commission on your investment. If you buy $100 of Apple, you still pay $4 and your investment only cost 3.8%. Just keep this in mind if you plan on buying many different stocks frequently.

Sharebuilder also offers mutual funds for those less stock savvy investors. If you feel you couldn't do a very good job investing and choosing your own stocks, choose a mutual fund instead. Signing up with Sharebuilder is very easy. Just go to the site, sign up, send in copies of the appropriate forms for verification and your own security, and then start placing trades! Click the link below to start investing with Sharebuilder.

If you still aren't sure how to buy stocks or you just want to sign up with sharebuilder.com, go to StockInvestingMadeEasy.info

Article Source: http://EzineArticles.com/?expert=Samantha_Asher



American Financial Crisis - Fiat Money

2008-10-04T22:16:34.775-07:00

What started the latest addition of the American Financial Crisis was, Fiat Money, you know what I'm talking about. Mickey Mouse money. Paper, just stand back a few yards and take a look at the stuff....

Yep, it's just paper, if they did not print so much of this paper maybe it would be worth something.

While were at it, Sit back and take a look around the room you're in at this moment in time. Do you see anything of value that you could sell or trade if you fell on hard times. Your age will dictate what is of value to you. For example, if you are a teenager you may consider your music collection to be of great value. But for this exercises we should overlook our personal preferences and concentrate on items of value and utility. You may collect stamps for example, but what makes a stamp collection valuable ?. Rarity, rarity is what makes a stamp collection valuable. By rare I mean there is very few of them in the world. And there are a lot of people who want them because there are not many of them around. After all you must remember, a stamp is just a piece of paper with a printed image on it. Paper and ink is all it is made of.

Fiat currency is paper and ink that government orders you to accept as payment for goods and services. They have their own banks (central bank) printing this paper money, money that is not backed with anything. All this paper filters through the the economy, causing more paper claims on the limited resources this world has to offer. This drives up prices and causes inflation, that means inflation is caused by the cenral banks.

Politicans and banker live high on the hog, the rest of us must make our living the hard way. I look at the USA and see bankers and politicans trying to tell the people they know best how to get the economy out of the mess it's in. The mess they created trough greed.

But central banks claim they are fighting infation, I look at their actions and think not.

I think you need silver and gold. Your house contents are not mobile, and when you need to flee the nest in hurry, traveling light is a boon.

If you have question regarding the above article, please enter a comment.

Article Source: http://EzineArticles.com/?expert=Thomas_Tobin

Thomas Tobin - EzineArticles Expert Author



Starving For Leadership - 4 Strategies to Fix U.S. Financial Collapse and Save Home Owners

2008-10-04T22:16:01.313-07:00

There is a winning strategy for this mess. It's one we know works, its one we lived. I was CEO of an FCS during the 1980's farm crisis. We secured social and political support, in the end helping the most farmers. Here's what we should consider.Today, the problem is perceived as bailing out fat, arrogant and greedy Wall Street types. While this may be true, the current solution fails to put a personal face on it. The personal face has got to be the troubled homeowner and their home mortgage....and the worried/non delinquent homeowner. The right solution should address the needs of current and non delinquent mortgagees.We have a crisis of confidence because of arrogance and greed. The first Congressional solution doesn't feel like individuals are protected. Right or wrong...that's how people feel. Unsung heroes which can be part of the solution are the thousands of community based lenders in the United States and the millions of homeowners who simply want to stay and pay.Here's what we learned from the debt crisis of the 1980's. Farmers had too much debt; regulators stepped in and said fix it. The regulator / treasury provided a 4 billion dollar line of credit...the fix was left to the local institutions. I believe the principles learned provide a "Home Run" solution now.Framework for solving the current financial crisis.Principle ...Put a face to the problem. Everyone must be incented for personal accountability which means loan restructures make perfect sense. Help everyone become winners. Define the problem in real terms for the family with a mortgage underwater. Help them. Help those who have paid on time. Here's how.Any homeowner with Fannie or Freddie with loan under appraised value can be restructured to appraised value. Interest rate may be adjusted modestly upward, e.g. ½ % as a premium for the restructure. It is better to have the existing owner on the property {same as farmers} When the loan is restructured, home owner waives normal foreclosure forbearance period and could provide lender a deed in lieu of foreclosure. In addition, the homeowner agrees to a shared appreciation mortgage in the event property is sold...agreeing to share 75% of the gain back to Treasury, or perhaps the community based lenders who helped service the loans.Benefit to homeowner...the homeowner stays in their home; they get reduced payments, and are accountable for their role in decision to borrow.Any homeowner NOT delinquent should be treated fairly. Perhaps, offer all current borrowers an incentive of ½% decrease from existing Fannie or Freddie fixed rate. Critically important is to offer all current 30 yr fixed at ½% below those who have restructured loans.Benefits to homeowner... individuals are rewarded for paying their mortgages; individuals stay in their home and get reduced payments for their personal accountability. Result of these two strategies has most, if not all of the Fannie and Freddie borrowers engaged as part of the solution. The problem's solution is now owned by all the citizens.Principle...let government provide the backstop which it does best. Managing the millions of loans is not done best from D.C.Change Treasury's role to a line of credit ...don't buy the loans...guarantee them so that the losses are covered. This prevents the mark to market write-down which overstates the losses. In about one day, the institution which I was CEO lost virtually all of its net worth because the regulators wrote assets down with a stroke of the pen. In the end, FCS only used about $1billion of the $4 billion Farm Credit bailout. Fear drove farmers, lenders and regulator overstating losses by 75%. Ten years passed before financial recovery occurred for the lender....and nearly 20 years passed before hope was renewed with farmers.Benefit...Government is limited to oversight, new regulations, and avoids the excessive and illogical write-down.Principle...put a face to the solution locally. Offer [...]