FINANCING YOUR BUYER FOR THE IMPORT OF U.S. CAPITAL GOODS.
FINANCING YOUR BUYER FOR THE IMPORT OF U.S. CAPITAL GOODS. International sales of high-value capital goods usually require medium- or long-term financing. This often poses special challenges to exporters, as commercial lenders may be reluctant to lend large sums to foreign buyers, especially those in developing countries. The solution to these challenges is foreign buyer financing offered by the U.S. Export-Import Bank (Exim Bank). As the official U.S. export credit agency, Exim Bank supports the purchases of U.S. goods and services by creditworthy foreign buyers who are unable to obtain the financing they need through traditional commercial sources. With these products Exim Bank underwrites the political and commercial risk that a commercial bank or lender would not otherwise be willing to take.
BENEFITS For the Exporter: Get paid-in-full at the moment of the sale Offer medium- and long-term financing to your buyer as part of an attractive sales package Reduce your risk exposure Increase your international sales For the Importer: Competitive interest rates, often better than those offered locally Option to select fixed or variable interest rates Grace periods for installation of the equipment Semi-annual payments Terms up to five years or longer in special cases No need for a local bank to get involved
TERMS & CONDITIOS Loan Amount From USD $250,000 and up Financed Amount 85% of the sales contract Terms Up to 5 years Longer terms for special cases Repayment Semi-annual installments of principal and interest Interest Rate Option of fixed or variable interest rate Rate based on LIBOR plus a competitive spread
ELIGIBLE IMPORTS All types of machinery and equipment, new or used, from U.S. suppliers Certain engineering and consulting services associated with the goods may be eligible for financing Local expenses such as import duties, installation costs, legal or technical expenses can be financed U.S. machinery and equipment that has previously been imported and paid for can be financed in some cases
APPLICATION PROCESS Contact an executive at Kraken Financial to discuss your financing needs and eligibility. Our team of English and Spanish speaking experts will guide you through the following process: 1. 2. 3. 4. 5. Fill out our pre-application form with the required information about your company and your importing needs. If your company is eligible, we will send you a tailor-made detailed financing proposal Once you have approved the proposal, our executives will prepare, with the assistance of your accounting department, the credit application for Exim Bank and submit it Exim Bank will review your application and decide on your case. This usually takes 5 to 8 weeks. Once the Exim Bank has approved the application, the loan origination fee specified in the proposal should be paid Kraken Financial will prepare the credit documents that must be approved and signed by the representatives of your company After receiving the documents and a confirmation that you have made the 15% payment directly with the American exporter, the goods can be sent and the exporter can present the bill of lading to the American commercial lender to receive his payment
REQUIREMENTS Commercial Requirements The U.S. content of the machinery, equipment or services to be financed must represent at least 50% of the total value of the invoice A U.S. company must issue the invoice for the machinery, equipment or services to be financed The goods must be shipped from the United States Credit Requirements The company should have at least three years operating in the same line of business The financed amount should not exceed 40% of the net worth of the company The company should have reported profit for the last two fiscal years Required Documentation Financial statements for the company s last three fiscal years in Spanish or English, including accounting notes Two bank references Two trade references Information about the project (order, pro-forma invoice, etc.)
KRAKEN FINANCIAL HSBC Tower Av Americas 1545 Col. Providencia C.P. 44630 Guadalajara, Mexico Office: +52 (33) 8000 0115 USA: 01 877 396 2953 contact@krakenfinancial.com www.krakenfinancial.com