Contract financing is a business loan provided to a signed contract, and money must use to complete the contract. The loan amount covers the cost of raw materials, equipment, and logistic. The repayment period matches the contract’s due date. Usually, a personal guarantee by a director is required but not collateral security.
Our industry-specialized credit risk experts carefully study the project’s risk, reward, and costs and recommend tailored credit solutions (i.e., credit terms, limit, and interest rate). The credibility of the contract and the client’s capability to complete the task are the keys to the loan approval.
The client represents one of the world-leading full-line hydropower equipment and services suppliers. They awarded a contract to provide the “Major Overhaul Repair and Maintenance Service” for one of the largest hydropower plants in Myanmar. Pluses provided a non-collateralized loan of 572 million MMK for eight months to the client for supplier invoice payment.
The client contracted with a multinational company to manage a bridge construction project’s marine navigation and control services. The client’s responsibility were manage 24 hours monitoring and marine traffic control services. Pluses provided a non-collateralized loan of 270 million MMK for eight months to purchase necessary equipment such as Buoy, Patrol Boats, Communication, and Monitoring Equipment.
