Amaacon Global Consulting - Import & Export Financing Options
Choosing the right import & export financing arrangement and the right terms can mean the difference between profit and loss on each transaction. Amaacon Global Export Import Consulting Services assists UK & EUROPEAN exporters and their foreign importers with a range of trade export financing services.
» UK & EUROPEAN Exporter Financing Services
» Foreign Importer Financing Services
Amaacon Global Consulting is in the business of linking foreign buyers with UK & EUROPEAN suppliers and assisting in the export financing of UK & EUROPEAN suppliers, and their corresponding importers in foreign countries, with guaranteed insurance for the lenders and working capital for the exporters through our network of Export-Import Bank, UK & EUROPEAN Commercial Banks and BCCI. A brief breakdown on the types of export financing and foreign importer financing is listed below. If you are not sure if export financing is right for you, please call or email UK today.
Why UK Export Financing?
- Expansion- Assists your business in increasing its market share with limited risk.
- Simplicity- Fast turnaround time & less paperwork. With Export financing there usually is no importer underwriting.
- Increase Sales- Export Financing allows flexible credit terms to international buyers which can increase your export sales. Export Financing can be arranged for up to 65% with a
- promissory note from the Importer - or 98% with a Letter of Credit. This can provide you with sufficient financial strength to sell larger orders than you normally would.
- Options- Allows a funding option for companies which may not qualify for traditional financial backing of its foreign receivables. Exporting financing may be on an OPEN Invoice (with 65% coverage) for your international buyers - allowing your customers to increase their purchasing power with only a promissory note.
UK & EUROPEAN Exporter Financing Services
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- Pre-Export Working Capital Loan Program can be Used for the purchase of services, labour and materials to fulfil an export sales purchase order/invoice.
- Accounts Receivable Factoring assists UK & EUROPEAN exporters with immediate cash against the value of a company's foreign accounts receivable.
- Purchase Order Financing for UK & EUROPEAN Exporters is a short-term solution to finance the purchase or manufacture of goods that have been presold to a creditworthy international buyers
- Forfeit Financing is an effective, low risk, non-recourse export financing solution for medium and long-term export sales.
- Term Finance for International Buyers provides medium-term loans directly to International buyers of UK & EUROPEAN-sourced goods. UK & EUROPEAN Supplier Credit Financing assists with non-recourse, medium-term export financing for UK & EUROPEAN exporters of UK & EUROPEAN sourced goods and services.
Foreign Importer Financing Services via ECGD
Medium- and Long-Term Financing
(ECGD will support up to 85% of the contract amount (depending upon UK & EUROPEAN content) after a cash payment of at least 15%)
Benefits:
Amaacon Global Export Import Consulting can help international buyers to obtain financing from commercial lenders for the purchases of UK & EUROPEAN capital goods and services.
- Floating interest rate negotiated between international buyer, with Amaacon Global Export Import Consulting assistance, 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 UK & EUROPEAN dollars or in select foreign currencies.
Loan Guarantees
ECGD loan guarantee 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 international buyer, with Amaacon Global Export Import Consulting assistance, and the lender.
Insurance
ECGD also offers medium-term insurance with similar eligibility requirements. Amaacon Global Consulting can handle paperwork and assist your company meet ECGD requirements.
Direct Loans:
In some cases, ECGD 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 UK & EUROPEAN. Treasury rate.
Joint Venture and Project Financing
ECGD also offers guarantees and direct loans to finance the foreign construction and operation of projects thru structured finance transactions, including limited recourse project finance in which project cash flows are used for repayment of the export financing.
Benefits:
- Financing available for purchases of UK & EUROPEAN capital goods and services for international projects, including projects in countries where ECGD 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, building, labour or technical consultation fees) may be financed
Transportation
ECGD’s medium- and long-term financing products can assist UK & EUROPEAN manufacturers in selling transportation equipment to international buyers. ECGD will support the export of both new and used UK & EUROPEAN 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.
Benefits:
- Export Financing available for purchases of UK & EUROPEAN transportation equipment, including in countries where ECGD is not opened for routine transaction.
- Long-term financing is available on terms up to 14 years
Short-Term Financing
In addition to medium-term insurance, ECGD also provides UK & EUROPEAN 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. Amaacon Global Export Import Consulting can assist the exporter or lender to submit the applications.
Benefits:
- Enables UK & EUROPEAN 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: ECGD works closely with foreign export credit counterparts to establish co-financing arrangements. Under this structure, ECGD guarantees the UK & EUROPEAN 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: ECGD’s sub-sovereign initiative allows a local or regional government to serve as a borrower or guarantor for the purchase of UK & EUROPEAN. goods and services. Eligible sub-sovereign entities mUKt be rated by an internationally recognized credit rating organization and meet ECGD’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 UK & EUROPEAN goods and services
Some Alternative Financing Options:
· Pre-Export Financing
· Guaranteeing Term Financing
· Export Credit Insurance
· Invoice Factoring