RE:RE:RE:No certain who is more cluless on this one... You KON grat you are absolutely clueless. YOu want to believe the answer to financing and finalizing a contract is a letter of Credit WHEN It has NOTHING TO DO WITH Reality. I do not like letters of credit because there are far better ways to structure deals that end up BUILDING relationships between buyer and seller.
This Sale should be done with a manufacturing purchase and sale agreement that would be done as follows:
PYR sets out the timeline and cost structure for completion of each unit being sold.
the saudis agree to pay the specified portion of their ( retail price ) contract at various intervals through the build
They start with the deposit which gets the process in motion.
PYR then provides updated specified cost details to the financer who then in turn uses this as the basis for releasing funds on the project ot PYR thru the son's company.
at each pre determined stage the financial institution reviews the info ensures they are on schedule and within budget and with that confirmation are able to procure the staged funds from the saudis or their bank as set forth in the agreement.
the final draw would be roughly for a total of 75 % of the RETAIL contract which means the cost should be fully covered and the line of credit - which is really only needed to Bridge costs between draws would be back ot zero or close to it.
at this poiint the tiltle for the asset is transferred to the sons company which arranges the final shipment. Once confirned as on board and insured for shipping the saudis pay the final amount or up to 90 % of retail withholding 10 for set up and training on the other end possibly. This also ensures that the FI has full knowledge and control over the final price to the son's company and any potential issue is identified immediately throughout the project and dealt with immediately.
DOne this way there is NO worry for the buyer or their bank and the funds would flow in direct relation to the stage of the project. If you looked at a builder mortgage it is a similar structure with the use of a built asset in place. Easy to monitor and definitely at a very minimal risk to the buyer in particular. Each party benefits and is paid on time so the whole process is solid and easy to implement and follow
So with this basic description of how this deal can be structured without much of an issue to either party why has it taken this long to figure it out or something similar ? Makes you wonder if you know how these things work.