Business Finance USA offers the following financial facilities for International Trade.
Trade Finance ( Export Import Bank of America )
As an Approved Representative of EXIM, BFUSA provides financing to US Exporters and their foreign customers. The financing must comply with the guidelines established by EXIM Bank, which are that the product or equipment being shipped contain at least 51% of US manufactured materials.
There are two different types of trade credit facilities available with the EXIM bank guarantee program.
- A) Trade Credit Facility for a Foreign company
This facility is available directly to Foreign Companies who are customers of a US based exporter. Products are financed through a revolving Line of Credit. Equipment is financed as a loan for up to 3 years term.
- B) Trade Credit Facility for a US Exporter
This facility is available directly to US based Exporters and provides A/R (account receivable) financing at US bank rates in order to facilitate Foreign Company’s orders.
PURCHASE ORDER FINANCING
BFUSA offers a US government program that pre-pays suppliers to fill US Exporter’s Purchase Orders, without the restrictions of the EXIM Bank as long as the products or equipment is shipped from the US.
This gives the US exporter additional credit lines based on a Foreign company’s Purchase Orders.
Example: $1,000,000 PO is equivalent to an additional $700,000 at US Bank rates.
ACCOUNT PAYABLE CREDIT FACILITY
Through our relationship with an International Trade Fund, a supplemental credit facility is set up separate from the company’s current bank facilities. There are no UCC1s meaning the company’s bank can maintain 1st position on company assets.
This credit facility is designed to allow a company to purchase more inventory than it currently is able to because its credit lines are maxed out. More Inventory means More Sales.
Most companies get up to 30 days to pay for its products. This credit facility adds an additional 90 days and pays 100% of the Account Payable prior to shipping. With a total of 120 days for terms the company can order greater volume and receive volume discounts.
The company using this Account Payable Credit Facility must be a US or Canadian based company. The company must have excellent credit; the personal credit of the owner is not a consideration. The supplier of the product being shipped can be a US based or Foreign company.