FINANCING OF BUSINESS

Every customer is a highly valuable partner! 
Swicofil considers every customer from the first contact onwards as a partner. In a good partnership one sticks to the agreements and to the words given. This includes adhering to the agreed payment terms. 
We judge a customer by his payment performance. Customers who pay in time or even before the due date always get our unconditional priority treatment and support. 

Clients who drag the feet fulfilling their part of the entered obligations or who delay payments run the risk of loosing that support. We have set up a pre-due-date reminder system to ensure that every customer is able to pay in time. Therefore late payers expose themselves automatically to advance payment terms.

There are NO open credit terms at Swicofil AG unless we are covered by our credit insurance or by another 100 % safe financial tool - our all duty is to sell and to make sure we are paid in time. - top priority: money must be with us on due date! There are following two categories which can be applied:
 

Atradius credit insurance	Other securities
Payment terms according  to Atradius insurance policy	Prepayment CAD net (only in well organized countries) L/C irrevocable + confirmed (very costly) Bankguarantee by first class Swiss bank Avalized bank draft by first class Swiss bank ERG or BAWI coverage (very costly)

Due date
Our 'General terms of sale' - para 15 stipulates: "The place of the execution of contract for buyer is always Emmenbrücke."

This means that customers obligation to pay for the goods which we sent the place and the date of execution is Emmenbrücke - or in other words:

The payment must be in our hands on the due date.

and not that the payment must be effected on the due date by the customer at his place! Delay interest is always EURO + 3 %; currently 6 + 3 % = 9 % p.a. It is calculated from the due date.

These facts are described by the Swiss law of obligations, article 74 (which forms an integral part of all our business concluded). The same is internationally valid and is ruled by the rules of conciliation and arbitration of the International Chamber of Commerce (Paris).

In order to facilitate fast Atradius inquiries we would like you to verify following points and transmit them to us. If you provide all information we get a credit line much faster:
 

1. Full address
    
2. Name of board of directors
    
3. Legal status of company
    
4. Turnover figures (last 2 or 3 years)
   giving also the breakdown of sales to local market and sales to which major export countries
    
5. Total number of employees 
    
6. Your personal judgement of management and staff
    
7. Activity information
   such as production programme, tons or m2 produced, evolution of these activities in recent past
    
8. Industrial equipment
   What kind of machines, age of them, integration of production line downstream, capacity
    
9. Information on what rawmaterial from whom is used
    
10. Analyzis of commercial organization
    • equipment
    • sales problems
    • problems with façonneurs?
    • market knowledge
       
11. Perspectives of the future
    • capital investments
    • changes of production programmes
    • co-operations with partners
       
12. Possibilities/potential for SWICOFIL AG

Bank:
UBS Switzerland AG, Bahnhofstr. 2, Postfach, CH – 6002 Luzern / Switzerland
Contact: André Köchli, andre.koechli[at]ubs.com, Tel. 0041 / 41 / 208 24 13

Accounts:
UBS Switzerland AG, Sonnenplatz, Postfach, CH – 6021 Emmenbrücke / Switzerland 
EUR:   IBAN No. CH31 0028 8288 4808 886A B
CHF:   IBAN No. CH96 0028 8288 4808 8801 X 
USD:   IBAN No. CH97 0028 8288 4808 8861 T

SWIFT address: UBSW CH ZH 80 A


Letter of Credit to be opened only through:
Credit Suisse First Boston, Trade Finance Service Center, 
P.O. Box 357, CH-6301 Zug/Switzerland
Telefon: 0041/41/727 92 83  Telefax: 0041/41/727 92 99  
Telex 865 404 cs ch
SWIFT No. : CRESCHZZ63A

In order to avoid any amendments of credit conditions we ask all customers to consider the following points when opening an L/C:

1) The L/C must be irrevocable and confirmed by any prime Swiss Bank, preferably Credit Suisse First Boston.

2) The L/C must be payable at sight + available at the counters of the advising Swiss bank.

3) L/C amount and Quantity to read about

4) Expiry date of L/C should be at least 1 month after last shipment date. No latest date for shipment to be mentioned.

5) Goods description to be kept very simple

6) Partial shipment and transshipment must be always allowed

7) Only original documents to be legalized (only if absolutely necessary) - Legalizations are extremely costly!

8) Delivery dates never to be included in the L/C

9) All our prices are cash prices. For secured facilities of upto a maximum of 90 days please add EURO interest rate plus 3 % margin p.a. on top of price

10) All charges and commissions should be paid by applicant


Your co-operation is greatly appreciated.

NO FURTHER CONDITIONS TO BE INCLUDED
 

quote
You concluded Contract No. ...... with Swicofil AG, on .... for the supply of ....... at a price of ..... . As security for the payment of the merchandise, an indemnity by a bank shall be furnished.

At the request of ....... we, the Union Bank of Switzerland, hereby irrevocably undertake to pay you on first demand, irrespective of the validity and the effects of the above mentioned contract and waiving all rights of objection and defense arising from said contract, any amounts up to 

........................

upon receipt of your written and duly signed request for payment and your written confirmation that

    a)    You have delivered the merchandise in conformity with the contract and that

    b)    You have not received payment at maturity for the sum claimed under
        this letter of indemnity.

The total amount of this indemnity will be reduced by any payment effected by us hereunder.

For the purpose of identification, your request for payment and your confirmation hereunder have to be presented through the intermediary of a first rate bank confirming that the signatures thereon are binding for your firm.

Our undertaking is valid until

........................

and expires in full and automatically if your written request for payment and your written confirmation, together with a first rate bank's verification of your signatures, are not in our possession on or before that date.

This indemnity is governed by Swiss Law, place of jurisdication is Zürich
unquote