Collateral management
Collateral management is a tripartite agreement between:
- The holder of funds (bank, pledgee, financial)
- The borrower or exporter
- The third owner designated for filing, storage and preservation of the stock of goods. The goods are pledged to the holder of funds to secure a credit facility it provides to its customers
Collateral management generates a number of advantages for all parties involved:
To the holder of funds:
- Secures and guarantees the financial transaction
- Provides real-time status and tracking stocks, entry and exit of goods
For the exporter:
- Guarantee of obtaining the most economical financing
- Already stored, the goods still available at any time, to be released at the best market prices
For the fund holder and the exporter:
- The third party holder is a neutral and independent party
- Provides insurance with all the guarantees
Procedures collateral management:
1 - IMPORT:
- The seller unloads cargo (loaded by it). Goods are received by the third party holder.
- The holder of funds pays the seller.
- Emissions documents (warehouse receipts) by the third keeper to send to the holder of funds.
- The applicant shall carry out its obligations under the credit facilities granted by the financial.
- The holder of funds instructed to release the goods. 6.The third owner executes the release of the goods.
- The third owner executes the release of the goods.
2 - EXPORT:
- Goods are received by procedure collateral managment procedure.
- Emissions of warehouse receipts to the attention of holder of funds.
- The applicant pays the amount of goods on credit facilities granted by the financial.
- Holder of funds sends third holder's instructions to release the goods.
- The third holder releases the goods for shipment.
- Goods carried are paid by the buyer to the applicant through the holder of funds.
General Control offers collateral managment services for the following products:
- Minerals (steel, metals, fertilizers, phosphates)
- Agricultural products (cotton, sugar, grains, vegetable oil, wool, coffee, cocoa, rice, tobacco)