NEW YORK, March 11 /PRNewswire/ -- ...discussing the impact of the new
financing, Actrade International Chief Operating Officer and Chief
Financial Officer Alexander C. Stonkus said, ''Actrade views this credit
facility as a major factor in its plans to expand the scope of the Trade
Acceptance Draft Program. With reliable, flexible financing such as that
provided by this new facility, Actrade can make the TAD Program available
on a larger scale to existing and future customers.''
On the issue of whether Actrade could facilitate larger transactions over
and above the $25 million revolving credit facility, Mr. Stonkus
acknowledged ING Baring's willingness to evaluate special account
transactions on a case-by-case basis, whereby such special projects would
be in addition to the $25 million.
Mr. Stonkus pointed out that the revolving credit facility actually
increases Actrade's ability to earn a higher return on capital. ''For
example, when the capital used to fund a $100,000 TAD transaction becomes
available after the TADs are sold at the end of a 30 day period, it allows
another $100,000 transaction to be financed. Over a 90-day period, capital
tends to be turned over three times. After Actrade discounts its cost of
money, the return on capital increases significantly with no additional
risk to the Company.''
Based in New York City, Actrade International Ltd., through its wholly
owned subsidiaries, provides innovative domestic and international trade
finance services. The Company's TAD Program and other services are marketed
to businesses in the United States and abroad through offices in Atlanta,
Fort Lauderdale, Los Angeles and New York. A newly established
international division, Actrade Resources, Inc., based in the Bahamas, will
develop and provide financing tools for companies trading outside the
United States and for American exporters. Actrade Capital Canada, Inc.,
based in Toronto, focuses on the financing and trading needs of
Canadian-based companies. |
