A company based in South Africa who is supplying urea internationally, got multiple contracts from different buyers to supply urea in Asia. As per international import & export terms & conditions, each buyer demands a Performance Guarantee from their suppliers after signing the contract. Surely, in this economic climate the urea supplier doesn’t want to lose this huge business opportunity.
To arrange trade finance they discussed various options with their bank to provide the Performance Guarantee against all the urea contracts but due their exhausted bank limit, bank refused to finance them and asked to deposit 100% cash margin in the bank account. Because of this refusal it was evident that they might lose this business. After some research on the internet to find alternate ways for trade finance, the supplier came across with Bronze Wing Trading which is a direct provider of trade finance services. On top of that Bronze Wing Trading offers these types of guarantees without obtaining the cash margin.
They have submitted Urea sales & purchase agreements with their company’s legal documents to Bronze Wing Trading in order to avail the required Performance Guarantees. Bronze Wing Trading did their due diligence on supplier & buyer companies and provided the Performance Guarantees upon receipt of documents and Performance Guarantee issuance fee charges.
As soon as the buyer companies received the required guarantee in their bank account, they initiated the process to issue the Letter of Credit in favor of the supplier as per the SPA to import the Urea. The supplier promptly supplied the Urea to their buyers as per agreed time frame and both parties were satisfied with their transaction. The Urea supplier was very appreciative of the assistance provided by Bronze Wing Trading in obtaining the contract successfully.