the purpose of trade finance is primarily to assist import/export transactions to bridge the gap in cash flow. On the one hand, there is the production of the goods/commodities and delivery of them, to receipt of the proceeds for the order. On the other hand, there is the purchase of the goods/commodities and receipt of the proceeds following their sale.
1. Commodity Assistance Program (CAP) – The program is designed for traders whose equity is not sufficient to execute the transaction. However, the trader has an Exit Buyer, i.e., the Foundation will purchase the commodities/goods/products on behalf of the trader and sell directly to the End Buyer, after which the profits will be distributed in accordance with the Funding Agreement.
In order to get an offer to CAP Program, the following documents need to be submitted for review and due diligence:
- Application/Letter of Request.
- KYC on Corporations letterhead.
Once the full package submitted, the R.M.G Capital Compliance to review, within about five business days, on green lite and decided to continue the process, the client accepts the offer of funding, the procedure, and schedules for performance.
2. Issuing and Receiving and Transfer of Documentary Credit (LC/DLC) from the top Bank.