production finance

An importer/wholesaler of machinery has a line of credit with a local bank or factor. However, the client needs an additional line of credit to open letters of credit to the manufacturer/supplier of the machines. Otherwise, the manufacturer would not put the machines into production for the client. In response, STAR is prepared to open letters of credit to the manufacturer/supplier, provided the client has purchase orders from good customers for the merchandise purchased under the letter of credit. When the inventory arrives from overseas, the client ships the product to his good customer. By prior agreement, the lender's initial advance against the receivables will be used to pay out STAR'S exposure.

STAR is a privately held company which has been in the production finance business since January 1999. Our typical client is a small to medium-sized company in the Import/Export, Wholesale or Manufacturing business. We finance most types of merchandise except for perishables or other products with questionable or extended terms or conditions such as consigment sales.

Our clients tend to be undercapitalized, fast-growing businesses, in a pre-sold position with their customers. We finance start-ups, provided management has a solid resume and business plan. We tend to be transaction and collateral oriented, and place less emphasis on the size and makeup ot the balance sheet compared with traditional lenders.

Our clients look to us for creative, efficient, fast and reliable production finance service. We offer a mix of talents in Letters of Credit, Logistics, Finances and Manufacturing, all of which come into play when servicing our clients' needs. We are committed to helping our clients be successful in today's competitive marketplace.

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