Financial Solutions

Asset Enhancement

Bonanza Links operate a private investment and asset enhancement program through our securities trading desk (of stocks and derivatives) and we follow a sharp, systematic process of continuously developing, operating, maintaining, upgrading, and disposing of assets in the most cost-effective manner. We ensure a coordinated approach to the optimization of costs, risks, service/performance and sustainability. We put investor capital to work in different investments, including stocks, bonds, real estate, commodities, oil & gas, master limited partnerships, financial instruments, derivatives trading, bridge loans, hard money loans, and private equity. We work with our client portfolios by considering several variables, including the client’s unique circumstances, risks, and preferences. We also work with investors who believe in a value investing or passive investing approach. We select positions customized for the client’s income needs, tax circumstances, and liquidity expectations. We treat transparency as a key strategic element. Our clients always know where the assets are located, how they are being put to use, and whether there are changes made to them. Consequently, the recovery of assets can be done more efficiently, hence, leading to higher returns. We identify and manage risks that arise from the utilization and ownership of certain assets rather early to help mitigate such risks.

Our Financial Analysts tirelessly research investment options, conduct due diligence on potential opportunities and determine when best to enter and exit assets. Our Economists keep a watchful eye on the current market situation and outlook. Armed with insights from financial analysts and economists, our asset managers have the final say in asset management decisions. They liaise with clients and ensure their best interests are cared for.

Our experts also undertake Derivatives Trading on clients’ behalf. Derivatives are financial contracts whose value is derived from underlying assets. Options, along with futures contracts and forward contracts, are some of the most common types of derivatives. The most common underlying assets for derivatives are stocks, bonds, commodities, currencies, interest rates, and market indexes. These assets are commonly purchased through brokerages. However, we operate on a totally independent basis from brokerage firms, mutual fund companies, insurance companies, etc. As such, our only allegiance is to our clients. We are not prejudiced to include any particular type of investment or strategy in our clients’ investment portfolios.

Our experts have studied and then researched the assets they intend to trade in, current market trends, economic data, government policies affecting prices and markets, prevailing investment sentiment, promoter company background as well as their performance track records, etc. in greatest detail possible. They also identify where your risks and your potential gains lie. Our experts have deep knowledge of market history and what one can expect from different types of assets. The best part is that our clients are always in complete control of their money. Payments are made only against assets acquired by the experts on their behalf. We understand the value of your hard earned money. It might be your life savings or the life savings you inherited from someone else. Your assets could easily represent many times your income, which is a lot of money. Do you really want to risk doing it yourself? Or would it be helpful to have access to someone who does this full time and who does this professionally? We make sure we cover your risks. This works almost like an Insurance.

We are compensated by client investment advisory fees, charged as a percentage of the assets under management. Therefore, our investment management decisions are objective. The client’s investment success is our only concern. We consider our relationship with our clients as similar to a partnership. Our Asset Enhancement Advisory team will be glad to discuss more details with clients who are on the lookout for an opportunity to get in touch with asset managers who can ensure good returns on their investments.

Project Financing

Bonanza Links, with its extensive and immaculate track record of providing authoritative as well as innovative advice on a wide range of project financing transactions worldwide combined with its global experience and local knowledge, is highly capable of delivering integrated project financing strategies and services its clients require. Since project financing is at the very core of all aspects of project development, in order to survive the close scrutiny that lenders and investors require to approve project financing, all aspects of the project must be aligned in a manner that ensures the end result of the project financing effort is a fully functioning, revenue-generating, and legally permitted project returning sufficient value to the investors. Transacting a project finance deal is not merely a negotiation of financial structuring but rather necessarily involves an analysis of real property rights, construction and development contracts, equipment warranties, concession agreements, off-taker agreements such as power purchase and interconnection agreements, cash management, environmental permissions and clearances, regulatory matters, and, of course, detailed tax analysis. Bonanza Links provides project owners/sponsors/promoters the much needed project financing solutions and support to raise capital for their projects through the developmental and operational stages. For both greenfield as well as brownfield projects, this is a gateway to reach project experts, investors and financiers. We have been at the forefront of several project financing transactions across various sectors of the economy around the globe. Our project support & financing services have benefited projects through their stages of inception through maturity. Startups, shovel-ready projects, green-shoots too have used our services at different stages of their project life cycle. We have the means as well as the necessary expertise to approach numerous Banks, Investment Bankers, Non-Banking Finance Companies (NBFCs), Financial Institutions (FIs), Venture Capitalists (VCs), Private Equity Investors (PE), Ultra High Net Worth Individuals (UHNWIs), Family Businesses, Hedge Funds, Pension Funds, Underwriters, Insurance Providers, etc. with great speed and efficiency. We understand how these fund providers and investors work and what are their main areas of interest. Targeting the right source is not just important but also crucial for achieving successful financial close.

Trade Finance

For the successful execution of a commercial transaction, financing is key. Each transaction is unique because it is tailored to meet different counterparties’ needs. Each transaction needs to be customized for the requirements of the jurisdictions involved in the transaction. Therefore, we believe it is one of our competitive advantages that we have strong relationships with first-class banks and open credit lines with them. Our team of expert finance professionals constantly tries to onboard new banks and increase our financing pool.

What is the trade finance?

Trade finance signifies financing for trade, and it concerns both domestic and international trade transactions. A trade transaction requires a seller of goods and services as well as a buyer. Various intermediaries such as banks and financial institutions can facilitate these transactions by financing the trade. The main function of trade finance is to introduce a third-party to an ongoing transaction to remove the payment risk and the supply risk while providing the exporter with receivables according to the agreement and the importer with extended credit. Suppliers, banks, syndicates, trade finance houses and buyers all provide trade financing.

While a seller (or exporter) can require the purchaser (an importer) to prepay for goods shipped, the purchaser (importer) may wish to reduce risk by requiring the seller to document the goods that have been shipped. Banks may assist by providing various forms of support. For example, the importer’s bank may provide a letter of credit to the exporter (or the exporter’s bank) providing for payment upon presentation of certain documents, such as a bill of lading. The exporter’s bank may make a loan (by advancing funds) to the exporter on the basis of the export contract.

Other forms of trade finance can include Documentary Collection, Trade Credit Insurance, Finetrading, Factoring or Forfeiting. Some forms are specifically designed to supplement traditional financing.

Banks and financial institutions offer the following products and services in their trade finance branches.

Letter of credit: It is an undertaking/promise given by a Bank/Financial Institute on behalf of the Buyer/Importer to the Seller/Exporter, that, if the Seller/Exporter presents the complying documents to the Buyer’s designated Bank/Financial Institute as specified by the Buyer/Importer in the Purchase Agreement then the Buyer’s Bank/Financial Institute will make payment to the Seller/Exporter.
Bank guarantee: It is an undertaking/promise given by a Bank on behalf of the Applicant and in favor of the Beneficiary. Whereas, the Bank has agreed and undertakes that, if the Applicant failed to fulfill his obligations either Financial or Performance as per the Agreement made between the Applicant and the Beneficiary, then the Guarantor Bank on behalf of the Applicant will make payment of the guarantee amount to the Beneficiary upon receipt of a demand or claim from the Beneficiary.

Trade finance is the financing of international trade flows. It exists to mitigate, or reduce, the risks involved in an international trade transaction.
There are two players in a trade transaction: (1) an exporter, who requires payment for their goods or services, and (2) an importer who wants to make sure they are paying for the correct quality and quantity of goods.

RISKS INVOLVED

As international trade takes place across borders, with companies that are unlikely to be familiar with one another, there are various risks to deal with. These include:

Payment risk: Will the exporter be paid in full and on time? Will the importer get the goods they wanted?
Country risk: A collection of risks associated with doing business with a foreign country, such as exchange rate risk, political risk and sovereign risk. For example, a company may not like exporting goods to certain countries because of the political situation, a deteriorating economy, the lack of legal structures, etc.
Corporate risk: The risks associated with the company (exporter/importer): what is their credit rating? Do they have a history of non-payment?

To reduce these risks, banks – and other financiers – have stepped in to provide trade finance products.

Popular methods of payment used in international trade include:

advance payment– the buyer arranges for their bank to pay the supplier around 30% of the order value upfront when ordering, and the other 70% when the goods are released or shipped.
letter of credit (L/C) – this document gives the seller two guarantees that the payment will be made by the buyer:one guarantee from the buyer’s bank and another from the seller’s bank.
bills for collection (B/E or D/C) – here a bill of exchange (B/E) is used; or documentary collection (D/C) which is a transaction whereby the exporter entrusts the collection of the payment for a sale to its bank (remitting bank), which sends the documents that its buyer needs to the importer’s bank (collecting bank), with instructions to release the documents to the buyer for payment.
open account – this method can be used by business partners who trust each other; the two partners need to have their accounts with the banks that are correspondent banks.