Import and Export Finance

Through the financial strength and resources now available, starting January 2020 we introduce new trade finance facilities for qualified companies, financing any legal cross boarder transaction between selective countries. You will find our list of more than 100 countries acceptable under this financial model HERE.

This facility provides any exporter a very competitive edge since he can offer his export products or services on a low cost credit basis.

TRADEFINANCE2020 enables exporters to grant credit facilities to their importers/buyers of up to 5 years, and still receive the immediate Non Recourse payment upon executed shipment and verification of the transaction underplaying paperwork.

As an incentive to buyers, an exporter can offer the sale of commodities, merchandize, machinery, equipment or services on a credit basis. Typically the tenor is 180 to 365 days. For selected transactions the tenor can be up to 5 years. The importer does not have to pay upon shipment, but only after the agreed time (credit term). The exporter can get paid right after shipment and verified paperwork.

For the TRADEFINANCE2020 facility to work, it has to be backed up by a financial guarantee, usually a documentary letter of credit issued by the buyer’s bank.

Under TRADEFINANCE2020 it is essential that (1) the importer’s bank is willing to issue a Letter of Credit, a DLC or an SBLC for the client. This is the basis for this non-recourse funding model. (2) The importer and his bank have to be located in one of the countries which are on “our list”. (3) The issuing bank does not have to be TIER 1, but acceptable. If the bank is not acceptable, possibly due to country risk, their European counterpart might have to endorse the instrument. (4) The exporter/seller and the importer/buyer will have to be established companies with a track record of at least 3 years. (5) Tenor can be up to 5 years and rates are generally in the low 6% per annum with a set-up fee of around 0,5% all depending upon the credit risk evaluation of the exporter and the importer. To find out if and how your transaction qualifies and under which final terms, please submit the Evaluation Form which you can download HERE.

Wishing you a very Merry Christmas surrounded by your precious family, and sending you all the best Irish blessings for the coming year. We are at your service again starting from January 2, 2020 bringing you the very best structured trade finance solutions.

Categories: Trade Finance