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Export Financing
Tradesur, Inc.'s open network of Export Financing includes agreements with highly ranked, premier financial brokers, as Meridian Finance Group, that brokers export credit insurance, arranges international trade finance, administers Ex-I B Bank programs and provides other credit and financial services for U.S. exporters. We also offer political risk insurance for international lenders and investors. Meridian has helped hundreds of exporters increase their international sales using trade finance, credit insurance, forfaiting, international leasing and other export financing alternatives. Meridian also provides international trade finance-related services directly to banks, asset-based lenders, leasing companies, and other financial institutions.
Tradesur has also established a service relationship with UPS Capital, the financial services business unit of UPS, which offers a number of products and services that can help the international buyers of machinery and equipment manufactured in the USA to finance their purchases, enhancing their cash flow and facilitating international trade; for example, short and medium-term loans are one way UPS Capital can help U.S. companies expand internationally. Funds are designated for the purchase of finished products or raw materials to produce goods and services sold to foreign customers. Export working capital loans can take the form of a revolving line of credit or a loan against receivables, inventory, or a combination of receivables and inventory. (See some current projects)
Tradesur also helps simplify the purchasing process for international buyers that already have established credit by utilizing financial tools and alternatives created for global export and trade. For example, Tradesur can arrange independent financing of turnkey supply "Projects" for qualified governmental agencies, or for corporations from eligible foreign countries.
When it comes to finance, Tradesur's open network provides unparalleled support for every aspect of your international trade objectives. As an example, Ex-Im Bank Programs are a powerful tool for international buyers of American manufactured products, i.e.:
Medium- and Long-Term Financing
Ex-Im Bank supports your purchases of U.S. capital goods and related services by guaranteeing or insuring loans to international buyers. In some cases, we also provide direct loans to buyers.
Ex-Im Bank will support up to 85% of the contract amount (depending upon U.S. content) after a cash payment of at least 15%.
Benefits:
- Enables you to obtain financing from commercial lenders for your purchases of U.S. capital goods and services
- Floating interest rate negotiated between you and the lender
- Local costs and eligible project costs, such as ancillary services (e.g., financial, legal and technical consulting fees) may be financed
- Loans may be denominated in U.S. dollars or in select foreign currencies
Loan Guarantees
Ex-Im Bank loan guarantees covers 100% of loan principal and accrued interest and is available for medium-term (up to five years) and long-term (over seven years) repayment, which is usually determined by transaction size. The interest rate charged is usually a floating rate, negotiated between the buyer and the lender.
Insurance
Ex-Im Bank also offers medium-term insurance with similar eligibility requirements.
Direct Loans
In some cases, Ex-Im Bank will extend a direct loan to an international buyer. The down payment requirements are the same as those for the loan guarantee, but direct loans have a fixed interest rate, based on the U.S. Treasury rate.
Structured and Project Finance
Ex-Im Bank also offers guarantees and direct loans to finance the construction and operation of projects through structured finance transactions, including limited resource project finance in which project cash flows are used for repayment of the financing.
Benefits:
- Financing available for purchases of U.S. capital goods and services for international projects, including projects in countries where Ex-Im Bank is not open for routine transactions
- Long-term financing is available on terms up to 14 years
- Interest during construction, local costs and ancillary services (e.g., financial, legal or technical consultation fees) may be financed
Transportation
Ex-Im Bank's medium and long-term financing products can assist U.S. manufacturers in selling transportation equipment to international buyers. Ex-Im Bank will support the export of both new and used U.S. manufactured transportation equipment such as commercial jet aircraft and engines, general aviation equipment, locomotives and other rolling stock, ships, and trucks. Special financing structures such as asset-based finance leases are available for certain exports. For more information, see Transportation Security Exports Program
Benefits:
- Financing available for purchases of U.S. transportation equipment, including in countries where Ex-Im Bank is not open for routine transactions.
- Long-term financing is available on terms up to 14 years
Short-Term Financing
In addition to medium-term insurance, Ex-Im Bank also provides U.S. exporters and lenders with a variety of short-term (generally up to 180 days) export credit insurance policies.
Short-term insurance is generally used for transactions involving consumer goods, agricultural products, spare parts and raw materials. Medium-term insurance is generally used for capital goods and services. The exporter or lender must submit the applications.
Benefits:
- Enables U.S. exporters and lenders to extend credit terms to international buyers with minimal risk
- Often more cost effective than bank financing or letters of credit
Special Initiatives
Co-Financing: Ex-Im Bank works closely with foreign export credit counterparts to establish co-financing arrangements. Under this structure, Ex-Im Bank guarantees the U.S. portion of a transaction, while the foreign export credit agency supports its respective portion.
Benefits:
Single, streamlined financing product
Greater coverage with a simplified process
Sub-Sovereign: Ex-Im Bank's sub-sovereign initiative allows a local or regional government to serve as a borrower or guarantor for the purchase of U.S. goods and services. Eligible sub-sovereign entities must be rated by an internationally recognized credit rating organization and meet Ex-Im Bank's credit criteria.
Benefits:
- Reduces need for sovereign guarantees in developing markets
- Enables sub-sovereign public sector buyers to access medium- and long-term financing for purchases of U.S. goods and services
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