I am supposed to be updating my firm's website and am having trouble wording one of our activities.
Does anyone know what the technical term would be for the following transaction;
Say you are a commodity
A mine operator wants to invest in a new mine.
Rather than taking out a loan, they pledge to supply you with X amount of tonnes of product at a discount (say some CME coal contract minus 2 dollars) for the next three years, in exchange for the cash to carry out their investments now.
Likewise, does anyone know what the technical term for the following, simpler, transaction would be?
Commodity trading firm lends cash to mine operator, mine operator pledges to supply trader with X amount of tonnes for FREE for the following 3 years.
Also, I am not sure if this is the appropriate forum, so any advice as to where I should post this instead would be very much appreciated/...