Growing Business, Securing Success
One Source provides significant expertise and a devoted focus to the Energy Industry with a proven track record of delivering complex and custom solutions to leading companies within the industry.
Our Suite of Services:
Insurance
- Credit, Structured Credit, and Political Risk Insurance
- Industry-Specific Program Customization
- Ongoing Service and Support with Policy, Claims, and Credit Limits
- Supply/Market Area Mark-to Market
Risk Management
- Risk Metric Enhancement
- Credit Management Support
- Credit & Collections Policy Procedure Development, Support and Consulting
- Commercial Collections
Working Capital
- Clearing of Physical Credit
- On-Demand Payment Bonds to replace Letters of Credit
- Alternative Financing Structures
- Enhance Funding Rate for Receivables Purchase Programs funding rate
FEATURED SOLUTION: On-Demand Payment Bonds
On-Demand Payment Bonds are a viable alternative to Letters of Credit (LC) in the Energy Industry and deployed to secure Pipeline Precedent Agreements, Pipeline Transportation Agreements, Commodity Supply Transactions and ISO Posting obligations.
On-Demand Payment Bonds offer several key advantages:
- 100% Indemnity provided to recipient (Obligee)
- Bond facility frees up capacity under LC structure to support growth and/or peak opportunities
- Callability, Payment Structure, Process and Timing closely replicate LC conditions/terms
- Program facilitates/eliminates internal economic hurdle rates associated with deploying traditional LC capacity
- Priced competitively to LC cost, with benefits at rates up to and exceeding current LC costs
- Premium paid by Principal for the benefit of Obligee
- Provides alternative within a suite of securitization methods based on commercial opportunity