09-19-2011, 14:58 PM
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#1 (permalink)
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Administrator
Join Date: Jun 2009
Posts: 481
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Structured Commodity Finance
Metals and mining, energy and soft commodities (crops): Structured Commodity Finance (SCF), such as trade finance is covered divided into three main groups of goods. It is a financing technique used by commodity producers and trading companies in the emerging markets business.
SCF offers liquidity management and risk minimization for the production, sale and purchase of goods and materials. This is done by isolating assets that are relatively predictable cash flows attached to it by pricing the prediction of corporate borrowers and to use them to have done to mitigate risk and secure credit from a lender. A corporate culture that borrows from a commodity that is expected value.
If you are planning then all proceeds to the lender is reimbursed by the sale of assets. If not, then the lender has recourse to some or all of the assets. The volatility of commodity prices may SCF a delicate matter. Lenders Interest Fund and any fees paid for processing the transaction.
SCF financing techniques include pre-export financing, countertrade, barter, and inventory financing. These solutions can be a part or all of the merchandise trade value chain can be applied: from producers to distributors to the physical processor and distributor, the purchase and supply raw materials.
As a financing technique is based on the performance of partner risk, it is particularly important for emerging economies such as higher risk environments suitable as well.
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