FOR ICUMSA 45 WHITE REFINED SUGAR
The following will explain our need for quick timely transactions.
Having our funds tied up for extended periods during the long drawn out and expensive procedures that are required in a conventional letter of credit transaction is un-acceptable.
The economies of the world share many commonalties however the most common thread is that TIME is MONEY. Almost everything we do every day is controlled or seriously impacted by the movement of money on both a National and International level. Money gravitates toward the highest return. When and wherever those high returns exists you will most assuredly find the working capital from around the World involved.
Our focus is Money not Sugar.
We are in the Money business not the Sugar Business. We purchase large allocations of sugar for resale because sugar is in constant demand and the return on investment is very attractive. Our cost of Money and the time value of money dictate the limits of what we get involved in on an investment level.
Creating secured interests for purchasing product internationally through bank issued letters of credit is not only slow but very costly for both buyer and seller.
The time typically taken by the issuing and advising banks to agree upon the wording of the financial instrument is in most cases unreasonable, and should there be the need for a confirming bank in this process the time becomes extreme and excessive. Time lost in a transaction slows down our turn rate which seriously effects our bottom line.
The perfect transaction for us would be to sell the product the same day we purchase it. Banks procedures and policies do not lend themselves to timely transactions. The bank approach which they claim was structured to serve the needs of their depositors seeking letters of credit is seriously over priced for the simple service they provide.
The banks legal department makes certain that the bank does not get involved in the certainty and safety of the transaction and guarantees nothing except that they will pay the buyers deposited funds to the beneficiary as long as his paperwork is complete and correct.
The entity in need of a letter of credit is required to have on deposit the amount of the LC and agree to allow there bank to block these funds. A typical fee charged by banks for letters of credit would be 2.5% of the transacted amount. A 25,000 metric ton transaction of sugar would require the buyer to pay the bank a fee of approximately $400,000 U.S. dollars. Banks when confronted with the justification question sound like a fast talking politician. It is literally impossible to explain with any degree of reasoning or logic why the fees are so excessive other than common greed.
The sugar Buyer is telling the bank that they can hold his $16,250,000 for 12 months and he will pay them an additional $400,000 for that purpose.
We offer a much safer, less costly, more efficient and timely method for our buyers when depositing their funds with a third party to be held for purpose of transacting the purchase of product traded internationally.
The Insurance protection indemnifying the person or entity depositing the funds into the Escrows trust account is Starr Indemnity a 100 year old company that insures many of the top fifty world banks. The rating given Starr Indemnity is from a 91 year old rating company by the name of AM Best. The rating they give Starr Indemnity is A.
While your funds are on deposit in the Escrows trust account they are in what is called a transactional account. These funds are protected by the FDIC for 100% of the amount deposited. All Contract Purchases require the Buyer to deposit into Escrow sufficient funds to cover a 3 month period of shipped product. These funds will be used to pay for the vessels shipped on the 10th, 11th and 12th months.
It is mandatory that a buyer be at the port of Santos for the purchase of the first vessel. We do not require Buyers prescience at subsequent loadings.
JUST COME TO BRAZIL AND SEE OUR SUGAR AND IF THE BUYER BUYS FROM US WE CAN PAY FOR THE BUYER'S HOTEL AND AIR TICKETS.(PRINCIPLE BUYER ONLY).
Commissions
$3.00 commission is built into our pricing.
Overages are split with seller 50/50.
All overages must be approved before quoting price to buyer.
Escrow is our paymaster and is contractually bound and fully bonded for purpose of receiving, holding and making payment of all monies including commissions as per contract instructions by PRF Global.
All parties that are to receive commissions shall receive a irrevocable assignment of proceeds form from the Escrow. Agents, brokers, intermediaries and consultants must approve the amount they are to receive and provide banking information as requested.
All individuals receiving payment are required to sign a 1099 federal tax form.
NCND agreements are useless and unenforceable. Please discuss this with your attorney.
The popular NCND document used by all Brokers needs to be modified to comply with U.S. Law. The most obvious flaw would be that it walks all over a point of law referred to as “Restraint of Trade”. Real Estate Brokers here in the United States have an enforceable document, you may want to copy it as it has proven itself in U.S. Courts of law.
All commission payments will be made by Electronic Funds Transfer, bank to bank.
Prices are subject to change at any time.
Method of payment and the Buyers attitude have a major impact on pricing. Prices are locked in once deposit is in Escrow or point of sale which may occur at warehouse or \prior to, during or after loading at Port.
Information for Buyers
The security that using our Escrow Service brings is; we can provide a safe, secure and confidential method of buying commodities, products or services quickly and efficiently without the need for complicated Letters of Credit.
Escrow provides a totally safe and secure method for buyers ensuring that you or your business receives the goods or commodities that you have paid for with absolutely no risk of loosing your funds and endangering your business or investment.
Entering into a transaction where you have no dealings before, can carry great risk without knowing the seller has the product.
Escrow provides a totally safe and secure method of ensuring that you obtain the goods with absolutely no risk of loosing your money and endangering your business.
No letters of credit required
Letters of credit often slow down transactions or even worse, prevent them from happening. The cost of issuing any sort of financial instrument such as LC’s, BG’s and SBLC’s from the Banks these days has recently increased dramatically. Confirmation charges from a top 25 bank can add an additional financial burden to international transactions where buyers are using smaller banks. These extra costs cut into pure profit margin when buying goods. None of this matters when you pay using Escrow. Your money is sent to the escrow bank to bank via the SWIFT system and sits there pending satisfaction of the agreement between the related parties. If the contract isn’t satisfied then your money is returned in tact.
Advantages
Escrow transactions are fast, efficient and risk free. This is simply achieved by us establishing that the seller actually has the product available. Often a seller will provide past evidence of performance that may not be relevant for today. However, in these difficult economic times this may not be true for tomorrow. Using our Escrow system we can arrange for the sellers to prove product initially and once completed confirm to us all shipping or delivery documents ensuring your money is only released to the seller once successfully completed.
Speed and efficiency
We are able to complete transactions large and small within 5 working days. This helps with cash flow, use of valuable time and enables you to have certainty knowing you have a trusted 3rd party administering your transaction, leaving you to develop further business interests.
ASK YOUR BUYER TO TURN THE LETTER OF CREDIT INTO CASH AND COME DOWN TO BRAZIL AND BUY A LOADED VESSEL ON THE SPOT FROM THE BUYER´S BANK TO SELLER´S BANK (MONEY TRANSFER OPERATION).
SIMPLE AS THAT. JUST COME TO BRAZIL AND SEE OUR SUGAR AND IF THE BUYER BUYS FROM US WE CAN PAY FOR THE BUYER'S HOTEL AND AIR TICKETS.(PRINCIPLE BUYER ONLY).
IF YOU DO NOT BUY IT, NOT A PROBLEM, AS WE CAN SELL TO SOMEONE ELSE.
VERY SIMPLE ,FAST AND CLEAN WAY TO CLOSE A SUGAR DEAL.