01
Sale with extra income
12% a year and more
In currency equivalent
We buy your products at an agreed fixed price and pay extra income for the deferral period. The company earns more for the batch sold — through the extra income.
AL PARI INDUSTRIES · Programme
Your finished products are an asset that can earn more
We buy large batches of products from producers and product owners.
For mining and processing companies and owners of large product batches. Batch value from $1M equivalent.
12%
a year and more — extra income for deferred payment, in currency equivalent
from 90 days
deferral period
up to 20%
initial payment for contracts from $2M
Products
What products we buy
Examples of sectors for large product batches.
- Mining and beneficiation
- Ore, concentrate, kaolin, crushed stone
- Metallurgy and metalworking
- Rolled metal, steel structures, finished metal products
- Mechanical engineering
- Railcars, equipment, components
- Woodworking and furniture
- Sawn timber, wood-based panels, furniture
- Food industry
- Sugar, flour, oil, canned products
The list is open: we consider products from other sectors when there is a large batch ready for sale.
Market situation
The products are ready, but sales conditions are unpredictable: logistics can get harder and the price can fall below production cost
The programme offers ways to sell finished products, earn extra income and build a steady sales channel.
Problem
Products in the warehouse, no buyer yet
AL PARI GROUP solution
We buy the agreed batch. We fix the price, pay extra income for the deferral when you sell with extra income, and secure payment with a mortgage.
Problem
Export or the domestic market won’t give an acceptable price
AL PARI GROUP solution
We buy the products in Ukraine at an agreed ex-works price above production cost.
Problem
You need steady sales for the next batches
AL PARI GROUP solution
We become a regular buyer of your products, so you don’t have to look for a new one every time.
Problem
You need money before final settlement
AL PARI GROUP solution
We provide for an initial payment and bank financing, subject to the bank’s decision.
Whatever the market conditions, the programme gets your products sold.
Different market conditions — a solution for each
We buy your products with deferred payment: with extra income, or at an ex-works price above production cost
Mining and processing companies need to sell finished products for as much as possible. But when domestic prices or export conditions won’t give an acceptable price above cost, getting the products sold becomes the priority. The programme has a solution for each of these situations.
The programme offers two independent options. Choose the one that fits your market situation.
Both options — part of the payment when the batch is handed over
Up to 20% initial payment
For contracts from $2MFor large deals the initial payment can be increased by agreement of the parties.
An initial payment can be made when the batch is handed over. By the agreed date we pay the rest of the batch value and, for a sale with extra income, the agreed income for the deferral.
Money sooner — in both options
Bank financing that keeps the programme terms — an extra way to receive funds before final settlement.
Subject to bank approval
Deal sequence
From handing over the products to full settlement
- Stage 1
Batch handover
You hand over the batch. Its price is agreed in advance and fixed in the contract. Once ownership passes, product and logistics risks pass to the buyer.
- Stage 2
Deferral period
The deferral is 90 days or more. The payment amount can be pegged to a currency equivalent.
- Stage 3
Payments under the chosen option
For a sale with extra income we pay the batch value and the agreed income for the deferral period. For a sale in Ukraine without export, the agreed ex-works value of the batch. Both options can include interim payments.
Part of the price can be received when the batch is handed over. If you need funds before final settlement, a further option is bank financing on agreed terms, subject to the bank’s decision.
- Stage 4
Final settlement
By the date set in the contract we pay the rest of the deal amount, net of payments already made.
Mortgage security
Mortgage drawn up and registered Batch handed over
We draw up and register a mortgage on real estate, and you hand over the batch at the same time.
Examples
Two market situations, two good solutions
The programme solves two problems: at acceptable market prices it lets you sell for more and make more profit; at prices below production cost it lets you sell to AL PARI INDUSTRIES above cost and keep production going.
Sale with extra income
Get more for a finished batch
UAH 100M Agreed batch price
+UAH 6M 12% a year over 6 months
UAH 106M Total paid after 6 months
We buy the batch with a six-month deferral and pay extra income on top of its agreed value. Example without an initial payment or interim payments.
Sale in Ukraine without export
Keep an acceptable ex-works price
UAH 94M World price
UAH 100M Agreed ex-works price under the programme
When exporting yourself doesn’t pay, we buy the batch in Ukraine at an agreed ex-works price. Payment is deferred.
Two independent options — a way to sell finished products on terms that work for the company.
Finished batch
Selling with deferred payment
To run the company and plan the next production cycle, you need to know the price and timing of the sale, when the money will arrive, and who will buy the next batch. Compare the two options: selling through the programme or waiting for a buyer.
| What we compare | Selling through the programme | Waiting for a buyer |
|---|---|---|
| Batch sale | Buyer and sale terms agreed | A buyer still has to be found |
| Deal amount | Price fixed by contract, including the agreed extra income. Total payout known in advance | Price of a future deal unknown and depends on the market |
| Payment date | Settlement date set by contract | When the money arrives depends on when the sale happens and what the buyer offers |
| Next delivery | Can be planned on agreed purchases | Depends on future sales and whether there is a buyer for the next batch |
| Payment protection | Payment secured by a mortgage on income-producing commercial property | Before a deal is signed, the buyer has no obligation |
The programme buys your products in any market conditions. Price, payment dates and the agreed extra income are known in advance and fixed by contract. Obligations are secured by a mortgage on income-producing commercial property.
Bank financing of a deferred-payment sale
More money now — the extra income remains after the bank interest is paid
For sellers who need money sooner.
Subject to bank approval $1,000,000 Batch
6 months Term
10% a year Loan rate in the example
12% a year Extra income
| Parameter | Without the AL PARI GROUP programme | With the AL PARI GROUP programme |
|---|---|---|
| How funds are raised | Loan secured on inventory | Sale with extra income plus bank financing against agreed security |
| Bank financing in the example | 40% of batch value — $400,000 | 75% of batch value — $750,000 |
| Bank interest over 6 months | −$20,000 | −$37,500 |
| Extra income | — | +$60,000 |
| Result after interest | −$20,000 | +$22,500 |
$350,000
more funds at the start
+$22,500
extra income after bank interest
Mortgage security can widen access to bank financing.
Deal economics with a bank loan: money now, settlement in six months
1. At the start $750,000
Bank loan. Repayable funds, paid off from the buyer’s payment.
2. After six months $1,060,000
Buyer’s payment: $1,000,000 batch value + $60,000 extra income.
3. From the buyer’s payment
- loan repaid to the bank
- $750,000
- bank interest
- $37,500
- left for the company
- $272,500
Deal result
$750,000 received earlier + $272,500 after repaying the loan and interest = $1,022,500.
$350,000 more funds at the start
Compared with a loan secured on inventory in the example.
+$22,500 extra income after bank interest
$42,500 more
$1,022,500 under the programme instead of $980,000 with a loan secured on inventory in the example.
Illustrative example. The product price in 6 months is assumed unchanged; storage, fees and other costs are not included.
Finished batch · Sale without export
When export revenue after costs is below production cost
If exporting yourself leaves the company less than its production cost, the programme lets you sell the batch in Ukraine at an agreed price above cost and keep production going.
$119/t Sale price abroad
$25/t Delivery costs
$5/t Other export costs
$95/t Production cost (benchmark)
What the company keeps after export costs.
Against production cost
−$6/t $6/t below production cost.
Agreed purchase price. Settlement on an agreed schedule within 12 months Payment secured by a mortgage on real estate.
Against production cost
+$5/t $5/t above production cost (before the cost of deferral and other costs).
Under the programme $100
After export $89
Difference +$11/t
The difference between selling through the programme and exporting yourself.
Selling through the programme — $100/t: $11/t more than is left after exporting yourself, and $5/t above production cost.
Payment security
A mortgage is not a way of paying, but it creates reliable security
1.67×
coverage of the obligation in our examples
The payment obligation is secured by our own income-producing commercial property.
Property check
Before the deal you check the property documents, its value and whether the security is sufficient.
Legal security
We draw up and register the mortgage at the same time as the batch is handed over.
Protection against non-payment
If unforeseen circumstances arise, the seller can enforce against the mortgaged property. The contract provides for out-of-court enforcement by selling the property or taking ownership of it against the debt.
- Buyer fails to pay
- Out-of-court enforcement
- Sale of the property Ownership of the property
- Debt repaid
Under the terms of the contract and following the procedure set by law.
Who the buyer is
Capital, an operating business and assets
AL PARI GROUP is a financial and investment group with a long history of investment, international trade and work with real assets.
01 · Capital over $500M
invested in completed projects
Since 2008Since 2008 the Group has invested its own capital in a range of businesses. Completed projects include:
- Alpari Bank founded, grown and sold to a foreign investor
- Cash Up a microlending service, founded, scaled and sold to Ukrainian and foreign investors
- Alternative energy investment assets sold after development and reaching their target value
02 · Operating business International markets
active trading
The Group trades actively and has well-developed relationships with counterparties in Asia, Africa and the Middle East.
Current contracts → product supplies, including raw materials
Buying products is part of the Group’s existing trading business.
03 · Tangible assets over $150M
in commercial real estate
Property portfolio → a specific property → mortgage for the deal
One of the Group’s commercial properties is mortgaged to the seller as security for the deal.
Accumulated capital, active trading and the Group’s own property base work together as one foundation for its investment programmes and trade deals.
AL PARI GROUP portfolio Benefits
Benefits for the company
01
Extra income — 12% a year and more
For a sale with extra income we pay the agreed income for the deferral period. The rate is agreed individually and can exceed 12% a year.
02
Sale in Ukraine without export
We buy the products at an agreed ex-works price above production cost when the market won’t give an acceptable price.
03
A steady sales channel
AL PARI GROUP becomes a guaranteed buyer of your products, so you can plan production and the next deliveries.
04
Part of the money before final settlement
For contracts from $2M an initial payment of up to 20% is possible; for larger volumes it can be increased by agreement of the parties. A further option is bank financing.
05
Product and logistics risks pass to the buyer
Once ownership of the batch passes, the buyer takes on product and logistics risks.
06
Payment secured by a mortgage
We secure the buyer’s obligation with our own income-producing commercial property. The mortgage is drawn up and registered at the same time as the batch is handed over.
An agreed price, a guaranteed buyer and tangible payment security — the basis for keeping production going and planning ahead.
Deal steps · Five steps
From agreeing the batch to full settlement
-
Batch
We agree the volume, quality and place of handover.
-
Terms
We set the price, payment dates, initial payment and the mortgaged property.
-
Contract and mortgage
We sign the contract and draw up the mortgage security.
-
Handover and mortgage registration
We register the mortgage at the same time as the batch is handed over, confirmed by an acceptance certificate.
-
Settlement
We pay for the batch by the dates set in the contract.
Regular purchases over 12 months
The contract can provide for regular purchases. For each batch, the volume, handover date and payment schedule are agreed.
| Batch | Handover month | Settlement month |
|---|---|---|
| Batch 1 | 1 | 4 |
| Batch 2 | 2 | 5 |
| Batch 3 | 3 | 6 |
| Next batches | 4 | 7 |
Then within the volumes agreed in the contract.
Next step
Discuss sale terms We’ll work out good sale terms for your batch
We’ll discuss the batch volume and value, settlement dates, extra income, initial payment options and mortgage security. We’ll prepare an individual offer that reflects your commercial interests.