Machinery and Equipment Import Finance

Through TRADEFINANCE2020 it is also possible to finance the import of machinery and equipment with typical tenors of 3 to 5 years. Recent transactions involved hospital equipment. In all cases of machinery or equipment import finance, re-payment will always have to be secured and guaranteed by a payment instrument. Under TRADEFINANCE2020 the participant funders always look for certainty of payment. Debt will have to be evidenced by a Bill of Exchange or a Promissory Note or a deferred payment LC.

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