The following is a brief summary that outlines the general procedures of our involvement in a Buy/Sell transaction. I will use D2 as an example, but the basic framework applies to many different types of commodities.
1. An individual comes to us with a Buy/Sell transaction agreed to, pending financial capability/credit enhancement.
2. The individual will have an agreement in place with the supplier to purchase a certain quantity of D2, and he will have an agreement in place with the end buyer to purchase that same quantity from him, obviously at a higher dollar amount.
3. The individual generally has a fairly good understanding of the product, and solid contacts in that industry, but is not financially able to meet the requirements of the supplier.
4. We review the entire transaction. A part of this review process is a background check on all of the parties directly involved in the transaction. If everything appears to be acceptable, we determine if we would like to particiapte in the transaction.
5. If so, we will "joint venture" with the individual who brought us the project.
6. The supplier can then be furnished with a XXX () or perform a "soft probe" on the account to determine that we are indeed capable of completing this transaction.
7. On rare occassions we may provide a Bank Guaranty or a Standby Letter of Credit, but this would be very rare, and generally only in transactions where we are very familiar with all parties. Thus far, based on the significant financial capabilities of our investors, this has not been an issue.
8. Once the supplier is satisfied, they will provide a proof of product, and the framework of the actual shipment will be put in place.
9. We require complete disclosure of the entire transaction, from leaving port, to arriving, inspection, etc. Projects that are not willing to provide full disclosures will not be considered.
10. When the transaction has been completed, the fun |
