Minimum Guarantee (Pre-Sales)
Minimum Guarantee or Pre-sales are distribution agreements providing advances or minimum guarantees (MGs) against the likely revenues in individual territories. Pre-sales are not generally paid in advance but they provide guarantees of future revenues which the producer can take to a finance source like TriStar, where these contracts can cash flow the production. There are many factors that must be taken into consideration in determining the amount that can be financed, such as the “bankability” and “creditability”of the distributors and the likelihood of collecting on this future sale.
TriStar has the experience and ability to insure that these receivables are insured against the possible reluctance or inability of the distributor in paying.
TriStar's has several corporate alliances with Distributors Globally who are well equipped to provide the services with reputable distributors both domestically and worldwide.