Monday, January 25, 2010

INOVATIVE FINANCIAL PRODUCTS TO "LEND" A HAND TO CHINA ECONOMY

{{w|Promissory note}} issued by the {{w|Second...Image via Wikipedia


Bridge Cash via Discounted AVALED P-Note are a miracle for the Chinese Banks and for the Chinese
Business-Borrower.

Resent market reports anounced that some Chinese banks have been ordered to stop lending. A Canadian Credit Enhancement and Project Funding Service, TLT Consulting, has developed an inovative and inspired method of creating Bridge funding solutions and finding operating capital for the Asian market. Representing a Financial Syndicate in Europe, a Third-Party Private Banking Entity, that lends money, typically used in Bridge Funding situations, or as Operating Capital in order to aid in the development of projects, to facilitate trade-finance, help to secure Loans, Real-Estate Development, or General Business Expansion, has designed untraditional but effective lending solutions. This type of financial wizardry will be a boon for Chinese Banks and Financiers alike.

Summary of Strategy:

Rather than via the traditional and somewhat complex “Loan Agreement Format”, the Borrower writes a Corporate Promissory Note to the Lender.

Against the Intent, by the Borrower’s supporting Bank, to add the Bank’s Endorsement with full Bank Responsibility, to the Promissory Note (to AVAL the Promissory Note), after the money is delivered at the Bank’s counters, the Lender discounts the Promissory Note and delivers the net Cash. The AVAL creates the Bank Instrument which can then be discounted.

The Cash is used until day 335, where the Promissory Note must be repurchased at its full face value – “The Repo”.

Hence, the Cost-for-Use of the money is deferred to the end of the year, including the cost for borrowing for the Cost-of-Use – effectively; the Lender loans the Cost-of-Use as well as lending the Cash, to be repaid along with the Money, at the end of the year, unless, the Borrower pays to use the funds for another year.

The question is – can a Borrower find a way to evidence, to the satisfaction of their Supporting Bank, the appreciation of Equity, or the generation of earnings, during the year, with, e.g., 84% in Cash to work with, to either be greater than the 84%, or, in terms of renewing for another year, to be greater than the 16% ? Then; re-financing could be justified, if and when required.

This funding solution can be implemented with expited speed. Contact TLT Consulting with your financial needs and have your project solutions explored forthwith.

TLT Consulting;Bridge Cash via Discounted AVALED P-Note


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