Small contractor guarantee program

Small contractor guarantee program
If the contractor can be qualified as a small contractor (not among the "Fortune 1,000"), the small contractor guarantee program addresses a bane of small business—getting a guarantee for the bank to support a standby letter of credit to be used as a performance bond. In some cases, this might permit utilization of at least part of the down payment for working capital purposes instead of being held as collateral for the standby letter of credit so often necessary to validate the underlying contract.
OPIC's guarantee to eligible financial institutions covers all risks up to 75 percent of the credit and is unconditional. For further protection, the contractor can apply for the 90 percent coverage afforded by the contractor's insurance policy previously described. Presumably, this guarantee would also be available for relatively short terms.

Relative
 standby letter of credit  guarantee program  capital purposes  performance bond  letter of credit  financial institutions  insurance policy  working capital  bane  collateral  fortune  small business  insurance

Comments

Post a Comment

Popular posts from this blog

THE RELATIONSHIP OF TRADE AND FACTOR MOBILITY

THE RELATIONSHIP OF TRADE AND FACTOR MOBILITY Whether capital or some other asset is transferred abroad initially to acquire a direct investment, the asset is a type of production factor. Eventually, the direct investment usually involves the movement of various types of production factors as investors infuse capital, technology, personnel, raw materials, or components into their operating facilities abroad. Therefore, it is useful to examine the relationship of trade theory to the movement of production factors. The Trade and Factor Mobility Theory Chapter 4 explained that trade often occurs because of differences in factor endowments among countries. A country such as Canada, with abundant arable land relative to its small but educated labor force, may cultivate wheat in a highly mechanized manner. This wheat may be exchanged for handmade sweaters from Hong Kong, which require abundant semiskilled labor and little land. Historical treatises on trade assumed that the factors
Read more

FINANCING

FINANCING Why do we need financing in the import/export business? To start, expand, or take advantage of opportunities, all businesses need new money sooner or later. By new money, we mean money that we have not yet earned, but which can become the engine for growth. For the importer, financing offers the ability to pay for the overseas manufacture and shipment of foreign goods destined for the United States market. For the exporter, financing could mean working capital to pay for international travel and the marketing effort. New money also can be loans to foreign buyers so that buyers can purchase an exporter's goods. American importers seldom have problems finding financing. United States dollars are plentiful, and if you do the homework phase well and you have purchase orders for the product(s), banks or factors are waiting to assist. The Bank Commercial banking is the primary industry that supports the financing of importing and exporting. Selection of a banking partn
Read more

U.S. Travel and Tourism Administration (USTTA)

U.S. Travel and Tourism Administration (USTTA) The U.S. Travel and Tourism Administration (USTTA) promotes U.S. exports of goods and services in tourism. For more information, contact the USTTA office at (202) 377-4904. tags  tourism administration  ustta  travel and tourism  information contact  
Read more