In message , at 19:13:41 on
Thu, 22 Jan 2009, D1039 remarked:
Escrow accounts against which the supplier could borrow? Bombardier
would pay cash into an account that both sides need to agree that it
is released, Bombardier to agree to release on delivery, with
mediation built in in case of disputes, and the banks could lend as
secured borrowings.

Isn't that in effect what a "letter of credit" is, used for a great deal
of international trade.

Except no-one would take the risk.

The risk of what?

Sorry Roland, I didn't make myself clear. I meant that if there is a risk
that in the event of a dispute the mediator/arbitrator ruled against the
supplier, then the bank will find their loan has gone but they don't get
paid, ergo in current conditions the bank probably wouldn't loan against it.

It would be unlikely that the shipment was rejected (and in effect sent
back to the factory), rather than some "snagging" done and paid for.
--
Roland Perry