One of the greatest hurdles facing exporters and importers is finding sufficient financing for their foreign transactions. Although basically similar to domestice trade, the financing of international business often involves methods and instruments which are decidedly different. Traditional commercial bankers concentrate on balance sheets and apply rigid capitalization and collateral security requirements before lending money. They often use a formula approach to finance which may be inappropriate to the deal at hand.

Global Trading Partners is a financier with a different perspective. It focuses primarily on the underlying transaction's economic and commercial viability in determining its eligibility for financing. Global Trading Partners assists exporters and importers by acting as an expeditor and financier for their profitable international trade transactions; helping clients to complete transactions which they might not otherwise be able to undertake due to a lack of sufficient internal capital or credit facilities.

Global Trading Partners designs the financing to fit the transaction; it doesn't require the transaction or the customer to fit a predetermined product and credit structure. This flexibility allows Global Trading Partners to completely aid a client from raw material acquisition, through international shipment of the goods, to the receipt of funds from the ultimate buyer. Global Trading Partners does not lend money. Rather, it finances trade on a transaction-by-transaction basis. If the transaction warrants, Global Trading Partners will finance 100% of the costs, often without outside collateral. Our transaction specific facilities help the client buy or assemble the merchandise. Then, together with the client, we assist, if necessary, for the merchandise to be delivered to the buyer and collect the funds under whatever payment mechanism is in place.

For our services, Global Trading Partners charges a Participation Fee that is calculated as a percentage of total Global Trading Partners funds expended on each transaction. In addition, Global Trading Partners charges interest on the actual amount of funds outstanding during the transaction period, typically at Prime Rate plus 4.0% (annualized).

The Participation Fee is determined based on the following factors:

1. Gross trading profit in the transaction;
2. Anticipated volume;
3. Perceived risk (including payment, product, inventory, cancellation,     currency exchange, and performance);
4. Estimated field work and monitoring;
5. Term of transaction;
6. Special conditions, if any (i.e., manufacturing, warehousing, etc.).

Global Trading Partners finances products which have been pre-sold and does not finance speculative inventory positions.

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Global Trading Partners offers customers several advantages:

- The transaction's financing is usually "off" balance sheet. Thus, the customer's financial statements do not reflect a potentially undesirable level of debt which might concern their existing bank and trade creditors.

- Participation and financing do not interfere with the client's current lines of credit, which can be reserved for more traditional requirements.

- Unlike venture capital investors who demand an equity stake in the company, Global Trading Partners participates only on a transaction-by-transaction basis. Therefore, the customer need not be concerned about the long term effects of reduced ownership and loss of management control.

- Customers benefit from the staff's extensive experience in international trade finance and procedures.

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Export Transaction Description

1.	Client is awarded a contract to supply spare parts to a foreign buyer with payment terms of sight letter of credit.
2.	Client will submit a request for financing of the order to Global Trading Partners (Global) accompanied by:
	a.	A copy of the purchase order or sale contract;
	b.	A copy of the Letter of Credit issued which names Client as beneficiary;
	c.	A transaction profit and loss pro-forma statement, showing sales price, all costs (including product cost, inisurance, freight, inland transportation, third party fees - i.e. freight forwarder services, inspection companies, etc.) and gross profit;
	d.	A purchase order listing identifying all supplies and associated purchase orders;
	e.	A project schedule;
3.	Global will review the transaction, and upon approval, issue a Secured Promissory Note to be reviewed and signed by Client. The Note will identify the Buyer, form of payment, total amount to be financed and term.
4.	Client will assign the proceeds of the Letter of Credit to Global. This can be completed by having the confirming or paying bank confirm an assignment to Global. In cases where open account terms are approved, Client will instruct the buyer to remit all proceeds to Global and such instructions must be acknowledged by the Buyer in writing.
5.	Client will notify Global when a supplier invoice is ready for review and payment. At the option of Global, confirmation of delivery of the product by the supplier may be required. Client will additionally provide payment instructions for direct payment to suppliers or request reimbursement for payments made directly by Client.
6.	Global will review the request to confirm terms and dollar amounts are within the previously approved budget. Upon approval by Global, payment will be made as requested.
7.	Upon completion of the purchase of all product, Client will inform Global that shipment is scheduled and that the product has been released to the freight forwarder for shipment.
8.	Client will instruct the freight forwarder to deliver the bill of lading and any other forwarder prepared documents to Client and Client will prepare the remaining documents for presentation under the Letter of Credit and deliver them to the appropriate bank for negotiation. Client will additionally submit one copy of each document to Global.
9.	Upon receipt of the Letter of Credit proceeds from the bank or open account payment, Global will prepare a Settlement Statement for Client itemizing amounts funded plus all fees and interest due. Amounts due Global will be deducted from the proceeds and the balance will be remitted to Client.

Import Transaction Description

1.	Client will establish credit terms and limits for each proposed buyer and submit to Global a request for approval of each credit limit. The request will include:
	a.	an agency report, if available (i.e. Dun & Bradstreet);
	b.	documented trade checkings;
	c.	any other documents requred by Client (i.e. financial statements, annual reports, etc.) to recommend the level of credit requested.
2.	On the basis of the information submitted by Client, Global will review for approval a buyer for the credit terms and amount requested.
3.	Upon credit approval by Global, Client will provide the buyer with irrevocable instructions to pay Client invoices to Client at Global. These instructions must be acknowledged by the buyer in writing.
4.	To initiate the transaction, Client will present to Global a request for funding (specifically identifying all costs to be paid by Global), plus the following;
	a.	the relevant buyer Purchase Order;
	b.	the Client Purchase Order and/or letter of credit to the supplier;
	c.	a transaction profit and loss pro-forma statement itemizing all direct costs (i.e., cost of goods, freight, duty, brokerage, agent's fee, insurance, inland transportation, etc.) and projected profit.
5.	Global will review the request and confirm that the buyer is credit approved and within limits and that the product is from an approved suppliers. If buyer and suppliers are approved, Global will prepare a Secured Promissory Note for Client's approval and signature.
6.	Upon Client's approval of the Secured Promissory Note, Global will instruct its bank to wire the requested funds to the supplier showing Client as remitter or issue the letter of credit as per Client's request.
7.	Client will provide irrecvocable instructions to its customs broker to receive goods on behalf of Client in the name and custody of Global. The broker must agree in writing to take instructions from Global.
8.	Upon arrival and clearance of the goods, Client will prepare an invoice and request a release from Global for delivery of the goods to the intended buyer. Global will release the goods for shipment upon receipt of a faxed copy of the invoice, unless shipment is delayed beyond cancellation date or the buyer's credit condition has materially changed.
9.	Upon receipt of confirmation of shipment, Client will mail their invoice to the buyer instructing them to pay Client at Global.
10.	Upon receipt of buyer payment, Global will deduct all costs, fees and interest from the payment and remit the balance to Client.