The ownership achieved, the reseller agent can now move forward to Proof of Product to arrange the sale of the commodity to a purchaser. (NOTE: There may be more than one reseller involved in some transactions before it reaches the end user - each usually contributes a service or sometimes an upgrade to the product/commodity until completion of the sale. The purchaser provides a bank letter of credit or other financial instrument from their bank so when the product is delivered payment is secured and released to the seller (or re-seller agent) when all conditions of sale are met. The profit difference between purchase to the final sale is then shared between the parties according to their JV participation agreement with each participant having provided a service, whether that service was providing the "financing" or otherwise. The degree of profit is determined by:a.) the difference between the purchase price and the sell price - commonly called the spread, b.) the time element that exists from point of purchase to the final delivery to the end buyer of the commodity c.) the commodity bought and sold under a succesful matched trade from producer to end buyerd.) the amount of funds placed forward to accomplish the buy/sell in the trade match dealing was accepted by the producer and their bank
BE AWARE: These opportunities for private funds participation on commodities may be set for a one spot buy/sell or have the funds standing for a longer term contract - as the long term contract stands the risk factors of consideration are minimized. However, a refinery has a preset for deliveries of their intake crude and exit refined product because they can not start and stop, they must have a steadily purchasing client making a JV participation opportunity difficult to secure for a longer period of time because they already have sales secured. The same issues apply either on crude oil supply or on refined product sales for the private participant, similar issues of risk and delays to see the return in the JV exist, but when found and sought out to be real can be lucrative.
a.) It is easier to match both buy and sell trade in tandem with full commitments by all banks involved (issuing, trade, exit) in the transaction PRIOR to executing the transaction.b.) The above commitments from all banks ensures that there is no trade risk in being unable to sell a product that is purchased.c.) The electronic nature of the transactions, allows the transaction to be conducted via a custodial transactional account. With capital under a non-depletion status in the account, the risk to capital is removed, as this is guaranteed by the bank holding the funds itself.d.)There is no delay in physical shipment, as it is not a physical product. This allows a greater number of transactions to complete within shorter time periods, and possibly more that one per day when organized appropriately. It is this speed of transaction which magnifies the margins to amounts which cannot be possible with physical product transactions.The licensed trade group to whom we make introduction with is a holder of "financiai paper" under contract with numerous issuing banks and has long standing relationships with the issuing banks having been involved in this field for many decades. In addition, exit relationships for the purchasing are already established making it easy to organize sale and buy agreements to be executed simultaneously. As such, they are in a position to utilize their relationships, to purchase "financial paper" commitments and exits with both buyer and seller using their monies and additional monies from participating JV clients. Clients place their funds forward and a new Business Venture is created with new matched trading agreements dividing the profits with the new client as a JV participant.
The Client is recognized as a business partner associate and the dealings are transparent at each stage of the buy/sell trade process, including disclosure the profit margins being made via the buy/sell contracts. This is all to establish and develop a long term relationships between the licensed trade group and the participating business partners within the JV.
The initial procedure for checking the funds/asset is very simple and varies as to procedure - different depending on the transaction being anticipated. An example ONLY, not always followed by this procedure, may not initially require any SWIFT or other such mechanism.
The simple requirements are (EXAMPLE ONLY): 1.) One email from the custodial banker confirming funds are within the bank and fully owned by the client 2.) The source of the email is checked through the trade group technical staff 3.) One phone call to custodial banker confirming they sent the email (no other questions) 4.) With certain banks, or branches of reputable banks, where a concern exists that may raise red flags; then on some occasions the trade group sends one of their licensed private bankers to the client bank itself to confirm the funds in person with the custodial banker - this is rarely required.
The client participating funds for financial commodity transactions under a JV commodity participation relationship are commonly set at a minimum of One Hundred Million USD and/or Euros. This minimum may be lowered at the discretion of the particular trade group under specific acceptable circumstances, in some cases the trade group will accept less. However, this is determined depending the circumstances. PLEASE ASK, there are other options available; sometimes as low as One Million USD/Euro are sufficient depending on the trade structure with which the trader is working. Where the client is wanting to bring forward an asset, the credit line value of the asset would be a percentage of the face value (if the asset is a bank instrument) and the credit line amount can only be determined after discussions with the trade group's trade banks that MAY provide the credit line loan depending on how the THEN lender evaluates the asset offered as collateral security. The trade group ONLY discusses the amounts after fully confirming that the asset is genuine and owned by the client. Trades are all done only with CASH FUNDS all assets must be made to cash - this is usually another party used to monetize against asset holdings.
Matched trading itself can only be executed with cash funds. Where an asset is proposed by the client, then additional steps need to be taken to monetize the asset into usable cash funds.
Requests to utilize "administrative hold" against cash only, reveals a lack of understanding of the funding process. A trade bank MAY OR MAY NOT release a credit line to the trade group secured against an "administrative hold" of the funds, as this is may not be recognized as a viable security. Any client making such a request is in fact trying to protect their capital without creating a lien on their funds by way of a blocked funds bank confirmation of the funds being able to be utilized by a confirming MT760 guarantee financial instrument. The trade group's first investment option described below achieves all of these goals for all the investment clients in a way that is both efficient and secure.
Where the client comes with cash funds from the beginning, an account structure still is needed to be agreed upon to ensure that the cash funds are both: 1.) usable by the trade group 2.) protected for the JV participation partner
Funds in an participating client's own account may fail compliance by the issuing bank when signing off on the financial paper buy contract, as the participation client is not the holder of product under contract, as is the trade group. The cash funds therefore have to be invested into a structure which allows both; 1.) the funds usable for the trade group and 2.) the funds protected for the participation partner.
Several potential strategies and funds/assets scenarios can exist to allow creating usable capital for trading. Please note that under all of the identified scenarios, the client remains as owner of the funds. The structuring of the funds to be made usable to a trade contract is discussed and consulted through Trust Management Services Inc. and/or directly with the Trade Partner of the Client.
"Your Financial Relationship Partner" Commodity Buy/Sell Joint Venture Participation in TRADE MATCHING with Challenging Returns
When the purchase of any commodity is made there are factors that apply as to the ownership and Proof of Product, which means the following in the case of most PHYSICAL commodities oil, grain, metals, diamonds, and many other PHYSICAL property commodities. In most cases the following applies as Proof of Product:
Let us review a few examples of buy/sell involving different commodities and evaluate the differring time frames from the beginning of the transaction to closing. Then follow through the anticipated profitable gain on the part of each of the JV participants. It should be noted that introduction to the persons or corporate that represent your possible PRIVATE involvement in these types of opportunities as a participant, is crucial - you must be introduced to these opportunities by those in the know in order to participate and profit from them under a JV participation arrangement - Trust Management Services Inc. is knowledgeable and capable to make these introductions and receive a pre-arranged portion of the JV participation arrangement profits for their participation in these ventures.
Example #1 - Oil and Petroleum ProductsThe sequence of events that take place from exploration to production then on to distribution and refining, to finished products is a long term investment, but as most commodities there is a consumable element that has many opportunities to profit at each stage of product deliveries.
The re-seller takes ownership as previously explained, the diamonds are brought to a "table top" meeting through the person or much simpler security measures, the assessment of value is performed on the product, the money exchanged for product as delivered on the spot, and the transaction closes. The time element is much less, number of transactions using the same participant funds more frequently occurs, so number of times to payout profit is much more frequent resulting in a better return to the JV partiipants overall. Improved cash flows make it very lucrative, but it should be understood that the diamond mines do not open to produce without knowing they have buyers in place to purchase. This being the case, to seek out a placement for JV participants with funds within the industry has its challenges as well.
Example #3 - Electronically Traded Commodities When applied to an electronic securities product, also a commodity, such as Medium Term Notes (MTNs) or mortgages, or Standby Letters of Credit instead of a physical commodity, additional benefits result, including certainty of profit commitments from all banks involved in the transaction, speed of transactions to close, and protection of capital via a secured and specified custodial security account that maintains participant funds at a initial level of deposit within the account.
a.) There must be a Request - Client must ALWAYS be the account holder and signatory and appropriate documentation is requestedb.) Confirmation of Funds - they are confirmed, compliance completed and accepted as genuine, then a contact and contract is initiated to move forward.
Once acceptance of the request is granted by the industry group chosen under recommendation, then Private JV trade agreements are issued to the signatory and account holder ONLY. Please do not ask for private contract or trade group details to be released to any third party or client representatives/intermediaries, as this is against the trade group's in house attorney's strict instructions - this is a PRIVATE introduction of a business JV arrangement. There are some items necessary to establish the JV Participation beginning with the usual bank "Know Your Client" information requirements to create a usable protected capital scenario for transactions through a custodial account with provision for non-depletion of capital funds deposited at the designated trade group recommended bank. Preparation of Sale and Buy contracts; Issuing bank compliance confirms funds are held in JV trade bank; Execution of daily transactions by providing trade bank back office with buy/sell Euroclear tickets to organize banking commitments for each transaction. Then the pay out profits as agreed weekly, bi-weekly or monthly or as underlined in the JV business agreement - this is common then to designate profits to project funding if those criteria are approved. PROCEDURE DETAIL - on the application documentation purchased from our shopping cart
a.)Trade Request - Client requests to be taken forward to a matched buy/sell trading opportunity by providing initial documentation including: 1..) Letter of Request from the Client 2..) A tear sheet of the account statement indicating cash funds available 3..) Letter of authorization to verify the funds in the bank on a bank to bank communication 4.) List of project(s) to be funded with maximum anticipated cost estimate 5.) Client Information statement providing compliance disclosure to "Know Your Client" to address the appropriate banking and finance regulations 6.) Full color copy of signatory/account holder's Passport 7.) Letter of Attestation
If the account holder client is a Corporation then the trade group will additionally require the following: 1.) Corporate Resolution naming appointment of the authorized signatory 2.) Certificate of Incorporation 3.) Passport copies of primary Directors and Shareholders of the Corporation NOTE: The draft form of these documents are available from our "Shopping Cart " identified as Trade Matching request Application documents.
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Where the potential JV business partner client does not have the One Hundred Million USD or Euro, the trade group may be able to initiate and arrange buy/sell matched commodity trading transactions for clients with a much lower minimum - although rare, it may be possible. The account would be placed through the assistance of the trade group bank with the client; this account would work under a client custodial account structure with funds deposited under non-depletion clause, thus providing comfort to the client that their capital stands safe. The trade group through their trade relationships are suited for the buy/sell matched trade activities.
The structure is very similar to the trade group buy/sell matched electronic trading, with the difference being in quantity of transactions that can be conducted per time scale, as additional real world delays of shipping and verifying needs to be taken into account. Other than the physical delays, the investment capital is again confirmed as protected by the bank itself to the participating client and returns are commonly substantial under this JV arrangement.