Welcome...

Collateral Provider, Inc. is the preeminent provider of specialized business and bank facilitative services, worldwide. Our years of experience and extensive network of institutional and other top-shelf counter party relationships combine to ensure timely, professional performance. Fairness and integrity is our mantra. Client satisfaction is our mission. Repeat business and new clients referred by previous clients are the basis of our existence.

DOCUMENTARY LETTERS OF CREDIT
Short-Term (Bridge) Collateral for international export-import EXIM, etc.

CASH PROOF OF FUNDS TO USD $500-M
Cash Deposited into Existing or New Client Designated Bank Account; Use to Evidence Financial Capacity for Delivery Versus Purchase (DVP) Financial Transactions, etc.

CAPITAL LIQUIDITY FOR FINANCIAL TRANSACTIONS
Funds-First Purchase Capital for Depository Acceptable Financial Instruments.

TRANSACTION FACILITIES - TRADING PLATFORM
Global Debt-Markets Securities; Introduction to major European banks (bond & note issuers/sellers); assistance with establishment of European/Domestic clearing & settlement facilities; obtainment of institutional forward purchase (exit) commitment(s) upon request.

Documentary Letters of Credit

Collateral Provider, Inc. (CPi) arranges DLC issues on behalf of our clients for various transactions to which they are party; usually employed as a strategic short-term bridging mechanism against contracts they have or can obtain for buying/selling goods and commodities, as in export/import transactions.

Banks require cash or cash equivalent collateral and establishment of a credit line as a precursor to issuing a LOC. But Credit or collateral placement by CPi clients is not required. Collateral and credit lines are already in place with representative issuing banks.

LOC may be issued with our client named as the beneficiary or to any third party beneficiary at the client's discretion. And, clients can elect a U.S. or European bank as the issuer. Our LOC instruments are issued "irrevocable and transferable". Once issued the instrument is delivered by SWIFT to any bank our client designates. Delivery occurs 5-7 banking days from the date upon which the client confirms their order.

Construction Finance Solution

Developing a high-rise condo or other common wall project? Need a construction loan but your bank won't budge until you pre-sell a certain percentage of the units you plan to build? Provide CPi with evidence that your proposed development is commercially viable - demographics, geography, economics, e.g. feasibility and we can arrange to purchase up to 100% of your required presales ($5 million to $100 million or more). Moreover, we won't attempt to take advantage of you on your sales prices. Contact CPi for details.

About CPi

CPi provides the most comprehensive facilitative and international business & financial consultancy services available. Innovative access solutions provided by CPi give our clients the flexibility they need to initiate their transactions with utmost confidence and convenience.

Working with clients to develop individual workflow solutions that respond to their specific needs, CPi's experientially based service applications are designed to interact seamlessly with client requirements, regardless of intricacy or range.

From initial planning through each phase of our client nominated service mission, CPi protocols are calculated expressly to perform client assigned tasks in the most efficient manner. This means that our business model is ordered deliberately to perform even the smallest tasks with the highest level of priority.

CPi's determination to provide timely, professional service along with our broad range of acumen's and pre-existing relationships with business and financial counter parties worldwide combine to provide added value to every CPi client.

When reliable, expedient, professional service and performance is required CPi has no peers.

Letters of Credit (LOC)

Letters of Credit CPi arranges are documentary (a.k.a. commercial, or DLC). The instruments are normally written on terms of 90, 180, 270 and 360 days, respectively.

A limited number of our issuing banks offer LOC duration terms less than 90 days. Provision of 30, 45 or 60 day LOC is, therefore, subject to (credit-line) availability with those specific banks at the time a client has the requirement.

We do not normally facilitate LOC issues with Face Values (FV) less than USD $250,000, or greater than USD $10 million.

When the client must have a face value less than USD $250,000, however, the issue can be arranged at a surcharge to our normal pricing. Should the client require a larger FV than our stated maximum there is no surcharge but the issues must be split into two or more with each carrying an issue date at least five (5) international banking days apart.

Issuing Banks

Banks that issue our LOC are located in New York, Chicago, London, Belgium, Portugal, and North Cyprus. Some are top-tier, some are mid-size and some are comparatively small. All are valued with assets in billions and listed in the Bankers Almanac, however.

A list of the specific banks that provide the issues we arrange are provided to prospective clients in advance. From there, a selection is made and we attempt to accommodate.

As we do deal with numbers of instruments concurrently, however, credit line availability at any given time varies from bank-to-bank. Therefore, while the client may still specify which country their LOC is to be issued from, the specific bank that will issue and SWIFT the instrument must remain at CPi's discretion. The client is always informed in advance, however, as to which specific bank(s) will be available to accommodate their issue during the time-frame they specify.

Important Note: The LOC we help our clients obtain are NOT for sale or lease. Specifically, the same may be used only in support of contractual financial obligations to which either our direct client and/or their designated beneficiary is/are party. As such, the LOC we offer/arrange are not offered or issued with intent for use by any client or their designated beneficiary(s) for the sole purpose of capital raising as a stand-alone activity.

LOC Specimens (Previously Issued)

Examine the details of your LOC in advance

One must be prudent in all nature of business, but globally based transactions demand a particularly careful approach. Caveat Emptor is the rule.

Along this line, perhaps you'll appreciate the following as we did when we first heard it: In the throws of a particularly frustrating situation some years back, one of our principals commented; "this business would be great, but for so many with no money trying to buy things that don't exist from so many others willing to sell it to them anyway". This pretty much says it all from both client and provider perspectives.

It would take an encyclopedic volume to even begin scratching the surface in terms of describing circumstances to be wary of in our business. But at least where LOC issues are concerned, perhaps we can lend a hand toward helping to distinguish the wheat from the chaff.

When someone claims they're capable of causing a live LOC instrument to be delivered, simply ask them for sanitized copies of an LOC they've SWIFTED. (Bank to bank electronic transmission is the only way live LOC are delivered.) Most will offer you specimen document language instead. Do NOT accept this. If they are unable to produce redacted copies of previously SWIFTED documents you are likely headed down a road to nowhere.

Asking lots of well thought out questions before proceeding could save you valuable time and money, not to mention disappointment and frustration.

For informational purposes, here are several sanitized copies of formerly SWIFTED LOC instruments. Compare these genuine examples of what the end product should look like in form and substance to other specimens you might receive:

FV: USD $1,903,125.00.pdf | USD $3,875,000.00.pdf | USD $440,424.00.pdf

If you have an interest in obtaining one of our LOC simply complete our application forms and return them to us. Afterward we'll advise you as to which specific bank(s) would issue your instruments and provide you with a SWIFT copy of a previously issued LOC from that/those specific bank(s). You can then forward a copy to your own bank and/or your seller to verify with them that the issuing bank and proposed instrument language will be generally acceptable to them. If you discover your bank or seller would prefer alternative language we'll work with you through our banks to modify the language of your instrument to suit their specifications. Our procedure allows you to verify everything before you pay us anything.

Apply for an LOC Now

Bank Proof of Funds (POF) Service

This service is provided most often in support of large, usually global debt-market securities transactions.

A seller of financial instruments agrees to deliver their instruments to a buyer on a Delivery Versus Purchase (DVP) basis. But before the seller will deliver, the buyer must show a proof of funds, e.g. evidence of the buyer's capacity to settle against the instruments within a specified time frame following delivery, as agreed in advance by the transacting parties.

While the contracted purchaser (seller counter party) may also have arranged in advance with a secondary (exit) buyer to immediately resell (exit) the instruments to be received from the initial seller, the initial seller needs assurance that its counter party (the initial buyer) can itself, in the event of failure by the counter party's secondary (exit) buyer, take and pay for the delivered instruments within the agreed time-frame.

CPi can assist seller counter parties (buyers) by arranging proof of funds USD $5 million (min.) to USD $500 million.

Note: Derivation of funds CPi arranges for its clients is institutional; compliant with KYC regs, the Patriot Act and anti money-laundering statutes.

POF service is provided on a 30-calender-day basis only but remains renewable for as many months as the client requires access to the funds.

Following execution of documents:

1. Client remits costs and fees as agreed.
2. A funding account is established in the client's name with a financial institution located in either the U.S., W. Europe or other as directed by the client.
3. The agreed funding amount is deposited therein.
4. Client begins instructing bank services; transmit MT Series SWIFT to seller's bank, etc.
   

The client can choose one of the top-tier banks (either domestic or European) with CPi or our funders already have a relationship, or; instruct us to cause a new account to be opened the client's or his designee's name in any other acceptable bank, domiciled in any free-trading nation.

Only in the most unusual circumstances would a relationship with a preeminent domestic or European institution which the client would find suitable to their purpose(s) not already be in existence. If the client's does require this, however, note that opening new accounts with financial institutions alternative to those with which existing relationships do previously exist triggers a surcharge to CPi quoted rates. The alternatively elected bank and country of its domiciliation will determine this charge.

Trading Capital

When, how & why availability could come in handy

What do you do if you come across a lucrative commitment contract or a good spot-buy on a block of financial instruments, but the transaction requires "funds-first" and you lack either all or part of the purchase funds? In the same vein, what if you take a DVP delivery against your POF and your exit buyer does fail for some reason?

Without a back-up plan, in the first instance you're simply forced to pass on the deal; no harm, no foul. All you've lost is a profit opportunity. In the second instance, however, since it was you that contracted with your seller (not your failed exit buyer), failing to perform can land you in a lot of hot-water.

Aside from a civil breach of contract with your seller, in such case you've also violated any number of federal, state and international banking and
securities regulations.

Liquidity

CPi clients that need funds to close a profitable funds-first transaction or to back-up a DVP exit failure can get help immediately by simply picking-up the telephone and dialing our number. We can cause delivery of funds within 24 hours after receiving details on the transaction and documents execution.

CPi can provide immediate access to purchase capital of $5-$500 million for the purpose of settling against depository acceptable financial instruments, so long as the same are quantifiable in terms of offering structure, status, e.g. lien/encumbrance, offer to market pricing and legal ownership.

Added Value: When you come across what appears to be an interesting prospective client, seller or financial instrument but you are unsure, you can request to have us perform due-diligence on your behalf.

Perhaps you'll get some out-of-mainstream instrument against which someone would like to establish a credit line and you'll need some assistance with
valuation or verifying it's ownership or efficacy. Perhaps you'll receive an offer of some kind, or run into a prospective client you need a thorough due-diligence report on. CPi can help.

For a list of common "Depository Acceptable Instruments", i.e. nomenclatures of financial instruments against which CPi would consider arranging Funds-
First Acquisition (Purchase) Capital see Depository Acceptable Instruments.pdf

Instruments not listed in this document may also be considered for acquisition funding or as collateral for a credit line but only on a deal-by-deal (submission) basis.

NOTE: CPi specializes in provision of advice and services at virtually all levels within recognized communities of business and finance on a global scale. However, CPi advises and performs services only on behalf of approved Agents and established CPi clients.

Become a CPi Client | Apply to become an Authorized CPi Agent

Trading Platform

Transaction Support Services - Infrastructure Planning & Implementation | Top 25 W. European Banking & Broker-Dealer Services

In addition to its ability to arrange POF and funding for various client transactions, CPi also assists clients with requisite trading infrastructure (platform) planning, design & implementation.

Front to Back Institutional Handling

Domestic and international transactions; Bloomberg, CEDEL, Clearstream, DTC-EUC screening/settlement; introduction to one or more Top 25 W. European bank bond/note issuers/sellers; transactional, fiduciary/custodial trust account set-up; lending assistance to clients in establishment of their own banking/trading facilities; introduction to international solicitors/law firms, taxation and other specialists in global (project) financing & international debt market securities issues as required.

Here, CPi provides introductions and assistance leading to the client's receipt of their own product provision (commitment) contract(s) from one or more top-25 W. European issuing/selling bank(s). Prior to proceeding with our first step toward provision of this service, however, conduction of thorough due-diligence on the client is required. This includes, but is not limited to an international criminal background check and provision by the client of personal and professional reference letters. (These documents and reports are required by European selling banks prior to beginning negotiations.)

CPi can provide the rest, including fully compliant funds. If the client does not already have their own exit buyers we can even help them become established with other world-class financial institutions that will provide forward purchase commitments (exit contracts).

In addition to providing major bank proof/confirmation of funds via SWIFT and liquidity for buy/sell transactions we can arrange the following:

• Institutional Custodial Services for Deposits of Cash or Securities
• Forward Purchase Commitments from major institutions to acquire quantified financial instruments
• Funds for Compensating Balance Deposits
• Financial Formula Funds and other financial operations
• Purchase of Future Payment Obligations
• Commercial Loans when secured by credit enhancement or collateralized by negotiable financial instruments
• Funds for *Arbitrage Transactions

*Fixed income, credit spread (options) trading and volatility arbitrage, basis (cash vs. futures), yield-curve, relative value and more. Arbitrage is a
financial hedge in itself: Spreads from mis-pricings and other price anomalies between related classes of debt and other securities are captured with a
controlled risk approach. Utilize capital we can arrange for you to leverage and obtain significant returns.

Pricing & Protocols

CPi Documentary Letters of Credit - Terms and Pricing

Issue Term (Days)	Price = % FV	Mo. Extension (Ea.)
90	4.95	1.94
180	9.40	1.85
270	13.65	1.80
360	17.60	1.725

Monthly extension, ea = %FV ÷ issue term (mos.) + 0.15

Note: Pricing is subject to change without notice

Variables in interest and exchange rates per jurisdiction dictate that LOC pricing is contingent on our cost of funds at the time of application. Posted pricing should therefore be viewed only as an indication.

Apply for LOC

Proof of Funds & Other Services

As individual client needs are diverse in depth, scope and level of complexity a more individualized approach to service and price modeling is required. As such, services not quoted here are provided independently, based on the proposed transaction.

POF Example: Funds with existing institutional relationship or new account requirement; escrow/no escrow; cash, or cash equivalent financial instrument; foreign or domestic facility requirement; top 25, medium or smaller facility acceptable; amount/term requirement; possibility of need for liquidity; full disclosure to CPI or client requirement for a blind transaction?

As you can see with just this short list of variables in client requirements for POF alone, publishing standard rates would be virtually impossible.

Contact CPi to discuss your specific requirements. Once we understand where you'd like to go we'll be better able to help you identify the best, most cost effective route.

Apply for POF or Other Services

Complete and fax or e-mail us the following two (2) initial documents. Our fax and e-mail coordinates are posted in the sidebar, the footer below, or here: Contact CPi

Client LOI.pdf (Letter of Interest Format) + General Data Form.pdf

 

 

Client Applications

Procedures for LOC (Application & Issue)

Complete and fax or e-mail us the following three (3) initial documents. Our fax and e-mail coordinates can be found in the sidebar, the footer below, or here: Contact CPi

1. LOC Applicant Compliance Questionaire.pdf + 2. LOC Client Application Form.pdf + 3. LOC Applicant Data Form.pdf (Letter of Interest Format)

• Following your submission, we will complete and provide you with our Trade Finance Agreement (TFA) as pursuant to causing issue of your LOC.
• With your return to us of the executed TFA we will issue a draft of your Letter of Credit and provide an invoice setting out the total fees payable for issuance and SWIFT delivery of your live LOC instrument.
• Your receipt of our first draft affords you the opportunity to review the document language in advance. You may request modification of the language thereafter or simply sign-off and send it back to us for issue.
• Following mutual acceptance of the final instrument language, payment of our invoice is made to our corporate account in the U.S.
• Following CPi's receipt and clearing of your funds, SWIFT delivery of your LOC will occur within 5-7 banking days.
• Your funds will remain available for immediate return to you without offset or protest in the unlikely event delivery shall not occur as agreed.

Procedures for POF & all other Services

Complete and fax or e-mail us the following two (2) initial documents. Our fax and e-mail coordinates are posted in the footer below, or here: Contact CPi

Client LOI (Letter of Interest Format) + General Data Form

1. Upon our receipt and review of the above we will contact you at the coordinates you provide to discuss your requirements in more depth, and to answer any questions you may have.
   1. Should you decide to proceed at that time we will confirm to you our fee structure and request that you provide us with evidence of your financial capability in an amount sufficient to cover the fees specific to the service(s) you elect.
2. Upon receipt CPi will draft and forward to you a Memorandum of Understanding (MOU) which will detail the services we will undertake on your behalf, along with terms and conditions specific to that/those specific service(s).
3. After you approve our MOU (or modifications of any subsequent drafts) a formal agreement will be presented for your approval.
4. With your approval at that time a request will be made of you to remit payment of our fees to our corporate account.
5. Your funds will remain available for immediate return to you without offset or protest in the unlikely event we do not provide the service you order as agreed.
6. Once the service(s) you contract for are provided as agreed, our fees are considered earned.

Broker Application

WANTED: Good & Experienced | Team Players ONLY

We'll begin here by again quoting a phrase one of our principals coined a few years ago: "This business would be great, but for so many with no money trying to buy things that don't exist from so many others willing to sell it to them anyway"!

Of course, we appreciate having new business referred to us by good, experienced brokers. Unfortunately, in this business even more than others, they are few and far between.

A good broker is one that is honest. No fluff, no puffery, no made-up stories. No answering questions they don't "really" know the answer to: Things are what they are, and that's the way they're conveyed to a prospective client.

A good broker is one that keeps his (or her) word. If they say a thing, they take steps to ensure that the thing they said, is or will be as conveyed. They say what they'll do, and do what they say. Okay, so sometimes a thing that is said turns out not possible by way of circumstances beyond the sayer's control. But it's always possible to contact the person that has some expectation based on what the sayer said, if only to explain that the thing that was said will not be as stated..

A good broker is one that knows when to listen. Most are speaking at the time.

Experienced brokers have had direct involvement in cross-border transactions for 3 years or more, minimally on a quasi full-time basis. They were usually professionals before entering the field, coming from backgrounds like law and accounting, commercial lending, real estate brokering and banking. They were formerly company CEO's or CFO's, securities traders or insurance executives, etc. They are educated and attempt to conduct all business professionally and ethically.

They understand that while they can earn an unlimited income working in this industry; greed kills. Therefore, they understand they're likely not going to be able to retire on a single transaction. They don't try to do side-deals that their clients are unaware of. They don't try to charge prices for services or products far-and-away above their "dealer rates" and they don't try to joint-venture with clients when they're offering to bring zip-to the-table but a business referral.

They understand that such behavior is unethical and looses them and the entities they represent credibility (thus income); that such behavior can only lead to their clients' and their own economic and emotional disappointment.

Again, we appreciate having new business referred to us by "good, experienced" brokers. Given all of the above if you feel you fit the bill and would like to become a CPi Agent, by all means complete and forward to us the initial application docs (.pdf links) below. We'll look very much forward to hearing from and working with you.

If you're the average we've run into over the years or just starting out (sorry, we don't give classes), however, please don't waste your time or ours.

If you are qualified as described in the preceding please complete and fax or e-mail us the following two (2) initial documents. Our fax and e-mail coordinates are posted in the sidebar, the footer below, or here: Contact CPi

Agent LOI (Letter of Intent Format) General Data Form

We'll review your application and telephone you thereafter as a matter of courtesy, regardless of the outcome of our initial review.

Note: As you've probably already surmised we're selective in choosing who we wish to work with. Thus, as concerns the documents you submit the more complete picture you can paint with regard to yourself and your experience, the better.

AGENT APPLICANTS: THIS PROTOCOL MUST BE ADHEARED TO. PLEASE DO NOT MAKE YOUR INITIAL CONTACT WITH CPi BY TELEPHONE OR E-MAIL. COMPLETE AND FORWARD THE ABOVE DOCUMENTS FIRST. WE WILL CONTACT YOU THEREAFTER. THIS APPLIES EVEN IF YOU HAVE A TRANSACTION READY TO CLOSE NOW!

Frequently Asked Questions

Combine the generally multifarious nature of global business with its subjectivism in terms of proper strategy and consider the broad spectrum of required acumen's and capabilities (ability or capital that parties purporting to, may or may not actually have). Once doing so it becomes clear that CPi could not begin to address every possible question within the limited parameters of this web site. This said, however, please see the following questions we tend to be asked most often and our answers following.

What assurance is there that CPi can/will perform?
A: Unfortunately, the only thing in life that is truly guaranteed is that one day it will end. Short of an untimely demise, however, the number of proven business relationships CPi principals have developed over decades with institutional and other counter parties makes CPi an odds-on favorite to succeed with our clients in bringing about successful conclusions to their transactions. This said, there are several things to consider where concerns CPi's credibility. 1.) We don't spend any money we collect from any client unless and until we've completed our assigned task. 2.) We are headquartered and conduct our business inside U.S. legal jurisdictions. If we took someone's money without doing what we contracted to (without returning it), we'd not only be taking on civil liability but we'd knowingly be taking on criminal liability as well, i.e. opening ourselves to fraud charges. 3.) Any service or product we bind ourselves to provide is contracted for completion within a certain time frame. Any provision of any agreement we do not reach as agreed by the "drop dead" date we impose upon ourselves therein, entitles our client to demand a no questions asked return of their funds without offset or protest. 4.) The most comfort can be taken in the fact that while we accept broker submitted business, WE DO NOT DEAL WITH UPSTREAM BROKERS. Said another way, whatever client transaction we take-on is either dealt with exclusively in house, or with other well-known, proven institutions and/or principal counter party investors. 5.) ALL CPi transactions are fully transparent, start to finish! 6.) Our own lawyers and accountants are involved at some level in every transaction we undertake.

Why does CPi not work through escrows to provide its services?
A: Whether it's banks, lawyers, investment banks independently or all at once; every client service we undertake begins with "our own" advancement of fees. There's also a consideration toward our intangibles; our credibility with the institutions and others we deal with are also put on the line with every deal we become involved with. On the cash side; if, for instance an entity were to order, say, an LOC: Before we could commit to them to have their instrument issued with the certain face value they want, with their required language, within a certain time-frame, by any one of the particular banks we may work with; the very first thing that must be done is set-aside (block) which part of the existing credit line(s) will be used to back the issue. This is the only way to get the banks to commit an issue, thus, it is the only way we can make any hard commitments to our clients. But what happens if before physical delivery of our instrument the individual that ordered the LOC unfortunately loses their contract with their seller (or buyer)? Or, what if they take ill, get into an accident, or their wife (or husband) finds out about the deal and threatens to divorce them if they proceed; whatever!? The first thing they'll want to do is cancel the issue. No problem, right? Not exactly. Because they haven't actually received their instrument in-hand and therefore cannot see that monies have already been expended on their issue, they will be less than cooperative regarding the idea of reimbursing CPI's and/or its counter parties out-of-pocket to that point. But, that's by far not the worst of it. The second part of the equation, as said, is our credibility with our banks and other principal counter parties. This is far more valuable to us in the long run than what out-of-pocket we might lose on some south-gone transaction. Even though an issuer might be paid for the few days work they spent on what turned out to be an upturned transaction; a.) they don't at all like having their time wasted, and; b.) the amount they do collect for their few days involvement is negligible as compared to the value of the time they lost. The bottom line is that significant capital is expended pursuant to initiating every transaction. If something happens (not our fault) within the small window of time between when a service is ordered and it is physically delivered, with funds still in escrow we are, at the very least, left with nothing but cash out-of-pocket, wasted time and a bruised reputation with our counter party. Been there, done that. Escrow companies do not get involved in others' disputes. They simply return the capital they are holding to the depositor. Then, we're forced to pursue a legal remedy, which can take years. At the end of it, we "alone" are out-of-pocket the whole way through, not even to mention the legal expenses. As said, been there, done that. No thanks. It's far better for us as a company to simply work fairly and directly with our clients. If issues do arise with a client within that short window as spoken of, we understand. Things can happen, and sometimes do; Murphy's law. So, if something does come up we'll do everything humanly possible to resolve it, up to and including returning any portion of the funds we are not directly out-of-pocket at the time of the occurrence. Of course, in such event we would be able to provide valid receipts in evidence of such expenditures to that date. If any problem arises on our end any time during the process, we return our clients' funds immediately without off-set or protest.

Does the bank where client POF proceeds are deposited also provide clearing & settlement services?
A: Perhaps. Perhaps not. At any rate, if you need such facilities they must be additionally arranged for. And, depending on your requirements, because of Sarbanes Qxley the bank holding custody of the funds backing the POF at the time may or may not be appropriate to conducting securities transactions. Establishing clearing and settlement services that are appropriate is a straight forward process, however. You can elect any major bank or securities house where you'd like to have your account opened and be assured you'll receive VIP treatment. When you proffer a large deposit along with institutional depository history, often such accounts can be opened within two-days time - anywhere in the free world.

Why is it that only your fees for LOC are posted in your web site - why not also the costs for all the services you offer?
A: CPi protocols (contracts and procedures) for LOC are virtually the same from bank to bank. The only potential variables then are our cost of money based on interst and exchange rates versus jurisdiction(s) applicable at the time of a client's order. All other services CPi offers must be customized/priced on an each basis in order to accommodate individual client requirements. Funny thing about most transactions in this business; not unlike individuals, all having similar attributes. We're all similar in some ways yet vastly different beyond the surface. Maintaining adaptability to individual client needs is paramount. Consider the inherent logistical issues alone as applicable to dealing with clients, brokers and business counter parties all over the world. Just juggling the time zones is sometimes an horrendous task. Of course there are many more significant variables from jurisdiction to jurisdiction; macro and micro economics, political stability, exchange rates and legal and compliance matters from country to country, etc. Further considerations involve everything from current and projected interest rates and market history to market approach and positioning. From qualification of borrowers and brokers (both licensed and independent) and proposed management to the degree and quality of available collateral (if any) from the paying client; from quantifiable to subjective considerations of potential equity and cash flows; from such arbitrary matters as target margins and often times even to the current mood or level of receptivity of a particular individual on a given day, many many factors are involved in setting service parameters. Therefore, fees for our other services are determinable only once we are able to identify precise client objectives.

If profits to be earned in a transaction promised to far-exceed CPi's service fees, would you consider a Joint Venture in lieu of direct payment for your assistance? Or, in exchange for a substantial premium over and above your quoted fees, would you consider allowing payment to be deferred to the closing of a client's transaction?
A: No on both counts. 1.) CPi participation in client transactions would create a significant conflict of interest. 2.) CPi is usually not the direct lender (owner of the funds or hypothecated assets provided to clients) as against either our POF service or our LOC issue. Rather, backing is usually provided by either an institution or a QIB (Qualified Institutional Buyer). Neither are we the borrower; the sole entity entitled to utilize the borrowed funds or other transaction assets. Therefore, CPi participation in such regard would additionally constitute a violation of law. Finally, anyone who can legitimately enter into a JV with you is also a direct competitor. If you are bringing the transaction to the table and your JV partner is providing all of the funds, what's to keep them from eventually becoming blind to the intrinsic value you provided by bringing the transaction? More importantly, once that happens what's to keep them from then simply, quietly leapfrogging (going around you)? While creative genius is great, money does the final talking. Unfortunately, this is the rule rather than the exception in this industry. Again, when looking for a JV partner, Caveat Emptor!

Can you advise as to any legal or tax implications or possible ramifications as concerns my proposed transactions, or as to specifically how I might handle the financial transaction I've arranged against which I am seeking a POF (or instrument)?
A: No. CPi is strictly a service provider/tactical business advisor. Under the law we are prohibited from giving legal or tax advise or any advise concerning your investment(s). Please See: Disclosures

Contact CPi

 

 

Nashville: (615) 591-7011
Fax: (615) 261-9128

 

 

Disclosures

Collateral Provider, Inc. (CPi) is a private corporation domiciled in the U.S. Our primary activity is providing consultancy services to business entities worldwide.

Nothing herein contained should be construed as a solicitation for investors or investment funds or as an offer or solicitation to buy financial securities from, or sell financial securities to, CPi or its representatives.

Nor should anything herein be construed as legal or financial advice as CPi is not a registered financial adviser, tax or legal advisor.

CPi does not solicit investors for investment funds as it does not represent investors or investments in any way.

The Letters of Credit we help to arrange for our clients are not classified as securities under the Securities Act of 1933, therefore, the handling of such instruments is in no way reliant upon or regulated under protocols for securities as defined there under.

Furthermore, the instruments we help clients obtain are for accommodation of specific client transactions. They are not for sale or lease. Client intent for use of the instruments we offer must be the support of a financial obligation of the client as pursuant to a contract or contracts to which the client and/or the client's designate beneficiary is/are party. The LOC instruments we represent may NOT be used purely as a mechanism for raising money.

Prospective CPi clients are advised to exercise caution when considering entry into any business transaction. Before going forward in any business transaction, competent legal, financial and/or other professional counsel should be obtained.