Commodity trade finance

Pine logs from USA to China

Alternative Financier, Trade Finance Partners (TFP) has provided a trade finance for a US company that was about to enter into a contract to supply multiple vessel loads of timber to a Chinese client.

The client was faced with several challenges including; an inability to fund the aggregation of up to 50,000mt of timber which was estimated to take two months and cost $3m per vessel. On top of this it was unable to fund the charter of the cargo ship which was likely to be up to $2.5m per vessel
Whilst the company was experienced in the logging industry it was less well versed with the complexities of the international logistics required to successfully deliver a project with so many moving parts.

TFP was able to analyse the trade through its detailed knowledge of cross border trade finance and where required bring in specialist knowledge in shipping, maritime law and timber trading to ensure the trade was successfully completed.

In addition, through the strong relationship with Macquarie Bank limited TFP was able to secure advantageous terms on the ship charter which might not have been available to other trade finance companies.

Following the departure of the vessel TFP and its client commenced work on the next vessel utilising and sharing the lessons learnt from the first trade.