Tour Operator
(Financial Innovation)
Challenge
A leading European tour operator that with low margins but high volume, took deposits by credit card for which they paid high fees and security deposits. It sought a competitively priced credit card processing facility with reduced security deposits. The company required a credible bank with a strong balance sheet.
Solution
IIG has strong relationships with leading banks in key European jurisdictions and consequently arranged a customized facility with a S&P "A" rated bank in a leading European offshore jurisdiction. This bank did not accept business from foreign entities or those it was not familiar with. Consequently
IIG established a gateway agreement with the bank and to meet operational requirements, structured a licensed local company for the client with the requisite structure stipulated by the bank. Further
IIG arranged all local client infrastructure needs.
Result
The client established an offshore licensed tour operator company with an internationally compliant banking and credit card processing facility at a reputable bank. The client enjoys a lower credit card processing expense, better cash flow and an advantageous corporate tax structure.
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