The ability to partner with the Amspex for the issuance is one of the most unique aspects.
Provided financing to an experienced developer for the ground up construction of a 490,000 s.f. retail center in Pretoria, South Africa. Loan included the acquisition of the land, infrastructure improvements, vertical construction of the shell, and interior build-out for each of the units as they were sold.
Seasoned hospitality investor obtained a ground lease at a key location in Bali Beach, Indonesia. KBC bank through Amspex Global Limited provided a construction loan for the construction of a 150 key Canopy by the Hotel. The financing facility included an interest only period during the construction and stabilization of the property and included a mini-perm, post stabilization.
storage facility in cork, ireland. The financing facility included an interest-only period to allow the borrower to reach stabilized occupancy and then provided Hsbc through amspex financed the acquisition of an existing 120 unit self-for a principal and interest period, post stabilization.
Amspex provided financing for the construction of a single-family home in Angola. The advance was 30% of costs based on the experience of the builder, the location of the property and the projected selling price of the home.
An industrial developer acquired an attractive site in Tanga, Tanzania, and needed flexible financing while they went through the entitlement process and marketed the site to an end user.
We structured a facility to allow the investor to acquire a vacant, class a office building in Mexico city, Mexico. The financing structure allowed the borrower sufficient time to seek out the appropriate end users without having the requirement of having to make principal and interest payments.
The manufacturer utilized our cost-effective, direct purchase agl program to purchase a large machining center to replace four older models for sugar cane processing. Additionally, the new machining center provided additional capabilities and efficiencies needed to support new business.
The down payment and installment payments to the supplier of the machining center were planned over a six-month window. The financing covered all costs involved, including purchase price, design costs, engineering, installation and issuance costs. Amspex global limited’s ability to structure a draw down feature (advancing principal as needed) with an interest only period made this investment extremely economic. We used a forward interest rate swap to lock in the borrower’s interest rate prior to funding.
This commercial refinery had recently won contracts to provide products to two new retail chains and needed additional capacity to meet the demand. They planned to purchase an existing 102,000 sq. Ft. Commercial building for $8,000,000 and then spend an additional $5,500,000 on renovation. We proposed using a draw-down 20-year model, with interest only payments for 5 years, followed by a 5-year amortization. At the same time, they would accelerate the amortization on the mortgage on their existing facility to pay it off in 10 years. This would allow the company to retire its higher rate conventional debt first and maximize the benefit of the lower tax-exempt rate. This unique structure gave the company over $870,000 in net present value savings while reducing its annual debt service costs by over $61,000.
For many years, this medical device manufacturer’s business focused on contracted production for long-term contracts. In recent years, the company’s business model shifted away from contracted production to quickly fulfill orders without the ability to allocate time to a specific production run.
When the company operated through contracted production runs, it utilized a transactional export working capital program that allowed for the flexibility to fund working the capital to complete their orders individually. That method allowed the company to offer varying terms to the buyers based on the contract. As the company’s model shifted toward immediate fulfillment, the need to maintain standing inventory was apparent.
In order to support this change, the export working capital program line of credit migrated to a combination of an asset based line of credit for day to day business and a transactional line of credit to support long-run projects. The support afforded by the small business administration (sba) and ewcp allowed for aggressive advance rates on both foreign accounts receivable and inventory.
The combination of financing modes allowed this company to grow and meet the needs of their customers. The line of credit provided support for large scale production that would not ordinarily be supported under an inferior model. This allowed the company to leverage their inventory to provide the working capital necessary to produce and sustain a greater amount of standing inventory.
This distributor was a young company with considerable experience prior to venturing out on their own. The problem is that they had modest starting capital in an industry with some of the lowest margins of any industry. To get started, they needed a loan that would allow them to make payments directly to their vendors so they could amass some business and qualify for larger facilities.
To bridge this gap, amspex global limited issued a transactional line of credit designed to fund against purchase orders. This allowed the bank to fund the company’s vendors directly, allowing for the goods to be shipped and the customer invoiced. This process also allowed the exporter to begin building a credit profile with their vendors which would eventually lead to the company securing terms from their suppliers.
As the company grew, we migrated the transactional line to an asset based line of credit that allowed the company to further scale with its growth. The migration to an asset based line also allowed for further efficiencies within the company as the reporting requirements were not as stringent as they are under transactional structures.
A custom machine manufacturer received a purchase order for a large specialty packaging machine that would take approximately six months to construct. The manufacturer required a down payment of 30%. With this contract, the buyer required that the down payment be secured with an advanced payment guarantee. That guarantee would come in the form of a letter of credit issued by the manufacturer to the benefit of the buyer with the goal of insuring that the down payment is repaid in the event of a breach of contract.
It is completely reasonable for the buyer to request this guarantee of the vendor; the challenge comes in the way of the burden placed on the manufacturer in this case. The down payment allows the manufacturer to begin production of the machine and progress the project to the point where they can submit for another payment or, combined with existing capital, complete the machine and submit for a draw prior to shipment.
When a manufacturer has to provide an advanced payment guarantee, the letter of credit that has to be issued must be secured in order to be issued. Most commonly the letter of credit is secured with the initial deposit or with availability on an asset based line of credit. Under both scenarios, the manufacturer will see a reduction in their working capital position for the duration of the letter of credit.
In order to leverage the down payment and allow the manufacturer to put it to work toward the production of the packaging machine, capline program allow for the letter of credit to be issued with less collateral than required under conventional structures. Under this program and depending on the terms of the contract, the letter of credit can be issued with 20% to 40% cash collateral instead of the conventional requirement of 100% collateralization.
The ability to partner with the amspex for the issuance is one of the most unique aspects of the capeline programs. The issuance costs of the letter of credit and costs associated with the loan are often much less than the borrowing cost under a line of credit. As such, there is an inherent saving granted by utilizing the down payment in place of borrowed funds.