Category: News

LETTER TO FRIENDS, CLIENTS AND COUNTERPARTIES

Dear Friends, Clients and Counterparties,

MINIMIZE THE UNKNOWNS TO MAXIMISE PROFIT IN 2018

The Unknowns inherent to our professional lives are staggering; naturally they can cause a lot of stress. Scenario planning is a logical stress mitigation tool-identifying the “worst case scenario” and strategizing a rebound can add great peace of mind. But as the global economy continues to shift and shake , we’re constantly reminded that we can’t have a plan for every possible outcome. And this reality is what stress me the most. And not the temporary “good stress” – as when you’re watching a sport or giving a presentation, or proposing to your girlfriend – I’m talking about chronic stress.

The kind that will kill you faster than lack of sleep, smoking, a sedentary lifestyle and alcohol abuse combined.

Everyone reading this can relate, because as business people it’s our job to be prepared for the unexpected, to have answers when the unforeseen arrives. Not having those answers is well….stressful.

Unfortunately, we can’t change the ebb and flow of geopolitics and the global economy. The best we can do is to identify the necessary resources to weather an unforeseen loss of revenue or a drastic increase in costs. Nine out of ten times, cash is that necessary resource. The most successful businesses know this well: the single best defense against an unpredictable business environment is a cash position which remains strong throughout the business cycle.

The preceding has not been pulled from thin air. A primary reason traditional financing isn’t available to those who most need it is that banks are stockpiling cash in anticipation of the next unforeseen economic catastrophe.

In doing so, banks are able to protect shareholder value and preserve financial stability; for various reasons (not the least, common sense), we expect this strategy to continue.

Small and medium import businesses need to know they can implement the exact same strategy to protect their livelihood as global banks do for their shareholders.

They need to know there are tools designed specifically for them to achieve this end; tools that give even startup businesses (among the least credit-worthy) the power to hedge against their worst case scenario by keeping cash reserves strong.

Since 1999, we have been laser-focused on helping importers by maximizing available resources throughout the business cycle.

WESTCAP has relieved a lot of stress over the years, and we can do it for you.

One of our experienced professional would be happy to help you strategize for future success.

Call, write, or stop by anytime; there’s no reason not to say Hi!

Yours in Prosperity,

WestCap Inc – West Capital Markets

 

Business Finance – Problems & Solutions

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BUSINESS FINANCE PROBLEMS AND SOLUTIONS.
Greetings!

You may have gotten the impression by now that we deal with Letters of Credit in all shapes and sizes. It’s true.  One particular type of LC we do a lot of work in is a niche product but very useful in some industries.  We’re referring to a documentary letter of credit which can be issued without collateral. Issuers of such letters of credit structure the LC in a way to manage their own capital risk and hold the shipment as collateral pending payment by the client needing the LC.This type of LC is useful to importers who may not want to draw down their bank lines for the month or two it takes for the supplier to get ready to ship the goods, but who are able to pay for the shipment when it is on the water.

It’s commonly used in the garment industry and is easily accepted in many spots in Southeast Asia, and often for CONSUMER PRODUCTS.

Our Indian clients may recognize this by another name, as it is sometimes called an accommodation letter of credit.

Continue reading “Business Finance – Problems & Solutions”

An LC Problem Solved

 

Greetings!   westcap_0001_Layer 6                                                              We perform a number of tasks related to letters of credit. Last month we assisted a client in getting paid immediately against a Documentary Letter of Credit that was due to have funds released four months after the necessary documents were presented. In the industry that’s called a usance LC. (When dictated into the phone, it came up “useless Elsie”. There are still a few bugs in voice recognition).The issuing bank was in a non-European country with Mediterranean beaches and the client was here in the US. To complicate things further our client was providing services, not goods, to his Middle East customer and the letter of credit was to pay for those services.We and our partners made certain the correct documents were required in the letter of credit to satisfy LC requirements so that the bank could advance the money.  This is trickier than you might think; banks are a lot more comfortable with LC’s related to goods rather than services.After that part, the last bit was much easier: getting the client paid immediately (at sight, in LC parlance), even though the LC specified payment in four months from date of document submission.  As it happens, the interbank rates in such cases are usually much less than normal bank interest charges to customers, so the customer saved money here too when those lower charges were passed through by the bank.

Continue reading “An LC Problem Solved”

20% of the people who receive our regular letter are from the United States or Canada

Greetings!

If the country profile of our website traffic is an indicator, about 20% of the people who receive our regular letter are from the United States or Canada, and 40% are from the United Kingdom and Europe. The rest of our readers are from everywhere else in the world.  We do attempt to be global as well as local.   Fortunately, human character and motivation tend to be similar no matter the country or language.  And to the best of our knowledge, our readers are all members of the same species.

Your Company’s Success!!

What Is the Difference Between “Discreet” and “Discrete”?
NUANCE!!

What’s the difference between our dedicated Trade Finance Team and everyone else?

Your Company’s Success!

Don’t Use YOUR import credit line to import goods.

Use OURS instead!

Talk to Us

It’s a Pretty Active World That We live in. New needs, New Products developing all the time.
Talk to Us about your financing needs. Contact Us Today

NEWSLETTER – MAKE YOUR DEAL FIT THE FINANCE

Greetings!

We begin 2013 with our continuing update on points of interest in our world, which happens to be largely your world too. During the last year we were starting work on the platform for a business component that works hand in glove with the trade finance business. We refer to the ability to combine finance with providing products for which there is continuing demand in many parts of the world.

Continue reading “NEWSLETTER – MAKE YOUR DEAL FIT THE FINANCE”

Alternative Finance: Using Your Available Capital Most Efficiently

Greetings!

It’s a new year.  One month gone!! But it may seem surprisingly like the old year when you deal with your banker trying to handle Letters of Credit or any form of Finance.

We begin 2015 with our continuing update on points of interest in our world, which happens to be largely your world too.

Continue reading “Alternative Finance: Using Your Available Capital Most Efficiently”

NEWSLETTER – The most successful businesses understand risk management.

Import businesses are particularly susceptible to liquidity and QA/QC risk.

A very common scenario:

1) An importer works hard over the years to build rapport and eventually suppliers are willing to extend open terms.

2) The supplier encounters financial hardship and is forced to ask the importer for a deposit.

3) The importer must now come up with a deposit (damaging liquidity), and their money is now at risk in the event goods arrive in poor condition (as cost cutting can affect QA/QC standards).

What can an importer do to mitigate liquidity and QA/QC risk?

The Answer: offer their supplier a letter of credit from WESTCAP instead of sending a deposit. Our LCs are backed by OUR cash, NOT YOURS! Your cash is your livelihood–don’t sent it overseas until your goods arrive and you are sure you’re getting exactly what you want. We help hundreds of businesses grow by mitigating liquidity and QA/QC risk,  and we can do it for you.