Trade Finance and Political Risk Insurance
PRM Brokers Limited is part of the PRM Group which has been in existence since 1990, with the formation of Political Risk (Managers) Limited, and is an established specialist company dealing in Trade Finance and Political Risk Insurance focusing on dealing in the most difficult of markets. It presents an innovative new approach to securing non-recourse trade finance and political risk insurance facilities for manufacturers/traders/overseas investors and multinational companies trading in volatile areas of the world. In response to market demands PRM is focusing on the depressed markets in Africa , Middle East , South America, Far East and the markets of the states of the Former Soviet Union (FSU) / Eastern Europe. PRM provides first class, professional and comprehensive facilities utilizing banking and insurance packages sourced in the London and worldwide market.
PRM only deals in International Trade Finance and Political Risk Insurance , and not in other classes of finance or insurance (marine, property insurance etc.) however we are happy to arrange introductions.
For companies entering newly emerging markets the opportunities are considerable but the path towards them and establishing solid and predictable relations with partners in those territories is often characterised by unexpected difficulties and uncertainty. Unfortunately all too frequently exporters are discouraged from developing their operations by concerns about the associated risks involved, particularly the fear that the buyer will default on payment, or that the government will introduce adverse legislation.
The typical solution of most companies is to deal only on a cash up front basis. Such trading methods lead to long delays or can even result in the planned project falling through entirely, as the foreign company cannot meet the advance payment requirement. However the determined, strategically thinking company committed to establishing a trading relationship or market presence can succeed, if it is prepared to be more flexible in payment methods. PRM's expertise consist in finding secure banks / insurance companies to provide support so as to enable the transaction / project to be without recourse to the supplier.
In addition to securing non-recourse trade finance, PRM can secure credit insurance policies covering against non- payment or insolvency of the buyer, and political risk insurance policies to minimize the financial blow in the event of contract frustration, nationalization or expropriation
PRM is able to deal with either specific transactions or total turnover arrangements. Coverage of specific transactions is on a case by case basis. With newly emerging trading relationships we recognise that an individualistic approach has to be taken; consequently each situation is carefully analyzed on its own merit. In cases where PRM arranges financial support, if required, PRM can act for the supplier in the execution of the necessary documentation to obtain the facilities. We are therefore able to provide individually tailored services for each client geared towards maximizing the profits and security for trade, and minimizing the potential hazards.
We firmly believe that PRM offers a unique service in the field of non-recourse trade finance and political risk insurance for difficult markets. Our small size is our greatest asset. Unlike large broking firms, we give every proposal our full consideration and will do our utmost to make every project work in some form. Consequently we have in the past been able to facilitate transactions other brokers have not been able to place in the banking and insurance markets (Lloyds, NCM and other big names).
We believe that companies can potentially have a lot to gain from our flexible structures and expertise and would suggest you contact us on any cross border transactions requiring financial support.
Mr G J P ABBOTT is a banker by qualification and has headed the UK and European treasury operations for two multinational companies. He is experienced in foreign exchange and short term asset/liability management, bank operations. Following the Ryder Report he was headhunted into British Leyland to take charge of international finance operations. Mr Abbott has established three finance companies in Europe and now is the director of PRM Brokers Limited, responsible for International Trade Finance and Political Risk Insurance. Mr Abbott has spoken at financial conferences in various parts of the world.