Third-Party Trade Clearing And Settlement

The facility undertaking is funded by a qualified lender who secures the commodity supplier on behalf of the trader through the issuance of a bank payment guarantee. This facility is secured through the assignment of the ultimate buyer’s bank payment guarantee and future cash settlement. Feasibility is dependent upon the reality of the transaction, the parties involved, and the terms of the letter of credit, including the credit rating of the issuing institution and general risk assessment.