SECTION IV: GLOBAL TRADE FINANCE

Financing Arrangements
Bank Loan for lease of building property. The reason RHIM poutine would be leased is
in case of bankruptcy, failure of profitable revenues, problems that arise through local
environment, etc. This will help RHIM be able to pull out from the lease at the end of the
term, or lease it again based on positive outcomes. Loan will cover the payments made
to gather proper equipment, extra, ingredients tox make the poutine, etc. Most of the
common expenses are to be held for a long term such as employees and material. This
will help reduce the amount spent to cook the poutine allowing us to generate a higher
gross profit margin.
No need for delivery expenses because partnering up with Uber Eats can help save
cost of getting to a wider group of consumers. There is also little to no expense on
advertising because of free and useful marketing online via social media.
Cash made by RHIM will be reinvested within the company to generate a higher profit
turn around year after year. The cash will also be split into profits amongst all partners
involved with the help of sales of poutine.

Cash Flows Estimations

There will not be intangible credit because the transactions made are on spot and cash
is always involved for short term. We have to keep in mind for credit purchases from
vendors and suppliers. Possible cash flow expectation could also depend on foreign
exchange due to high volumed tourists. The intake of cash is healthier for the company
because it is liquid asset and can help pay off many payments that decrease our cash
flow. There is a sunk cost in our cash flow because of the expenses on the equipment
each year as well as the lease of the property.
Products and Financial Risks
There are many risks when it comes to launching a product a completely new setting. At
first, the primary risk is that the product is unsuccessful. Thus resulting in all
investments to go down the drain and bankruptcy. However, despite the worst-case
scenario, many other risks come along with the process of launching. For instance,
there are risks when it comes to obtaining credit, investors, and equity. All these
potential scenarios can lead to serious dilemmas. Thus, it is essential that all aspects
are thoroughly revised and no precedent is disregarded.

Currency Exchange Rate Fluctuations

England uses the currency of Pound Sterling whereas Canada’s currency is known to
be in canadian Dollars. The current exchange rate shows that the Pound is rated at a
higher value: 1 Pound results in $1.74 Canadian. Nonetheless, the fluctuation rates
have been steadily stable throughout the past years. The only viable result in the
currency of Pounds to a rise in relation to the Canadian Dollar. This exchange rate is a
definite concern to trading companies, yet is it still an up and becoming issue on the
rise.

International Leasing and Joint Ventures

In order to bring poutine into England we plan to coincide with Butterfield Trust
(Guernsey) Limited. This trust company is known for developing relations with many
international clients to provide exceptional solutions and services. This company will be
a great asset to have in order to make our product successful within England.
Additionally, Butterfield Trust (Guernsey) Limited possess all the needed attributes to
assist in making financial decisions and various other banking operations.
Collection Procedures for International Debts
In order to obtain international debts, we will be in relations with Lovetts Solicitors, a
well renowned collections company located within the United Kingdom. This company
will help us in recovering monetary values that are owed to us. Lovetts Solicitors charge
no collection or recovery fees. They conduct specified and thorough research of the
debt and contractual agreements from which they contact the debtor company to settle
the situation. The funds are then initially transferred directly into our company bank.
This allows for little confusion and direct relations.

Commercial Disputes and Resolutions Options

Commercial disputes are the possibilities of disagreements or breaches that may occur
between partnering companies. These disputes can include, breach of contracts,
financial disputes, shareholder disagreements, etc. In order to resolve such occurrences
there are various resolution options of either negotiating the situation, going through
litigation, or mediation and arbitration. The primary resolution option will differ in regards
to the situation and intensity of the breach.