Dear Professional !!
I need to get past all the spin on the bank sites and get some cold hard facts.
Position - HK company with China Factory ( HK / China JV ) .
Small - Not large like Ford or GM , otherwise a team of 100 lawyers and accountants would answer this !
Customer raises L/C to HK and need Trade Finace on this L/C.
Company HK has to raise on the l/c alone and not on other company asets ( none ) . Something like packing loan but transferable into China to finance the factory in the production of goods and payment of workers.
The option of using the l/c as transfereable has been tried but is not accepted for trade finance on the China side due to non controlability ( ? ) of the transfer / change of docs / need for originator to transfer money to 1st then 2nd beneficary.
We have no wish to have the customer raise direct to the factory. Even though a JV we still wish certain facts to be at arms length from the factory.
At this time have survived on " private finace initiatives " but have no wish to continue in this way.
Options needed , no spin, just cold hard facts with costs . Also which is the best one and who gives the best deals in town. Expected turnover 20077 - USD5.00 mill
On another note anyone doing business on finanance from customer PO , without L/C ? I assume this high risk for traditional banks but we do a lot of business this way.
Regards with hope !