BUYER FINANCING FOR CAPITAL GOODS AND SERVICES
Book new sales and grow your export market share, without taking additional foreign credit risk.
Challenges
Sales opportunities can be lost when a foreign customer requests payment terms beyond your company’s credit standards. Exporters often do not want the risk of carrying long-term receivables on the company’s balance sheet. How can you manage these credit issues and build your export sales? Buyer Financing may be the solution.
Benefits
Expand Your Export Sales
By offering your customers term financing from Wachovia, your sales proposals will be more competitive.
Offer Lower Cost Financing to Your Customers
In some overseas markets, Buyer Financing loans may have interest rates below those offered in the local market.
Mitigate Your Export Risk
Under Buyer Financing,Wachovia typically issues the letter of credit (LC) on behalf of your customer directly to your company. Your company is paid when conforming shipping documents are presented to Wachovia and the loan to your customer is drawn.
Features
Exports of U.S. goods and project-related services are eligible for EX-IM Bank financing. For non-U.S. goods, Wachovia will verify if the buyer and contract are eligible for private credit insurance.
Buyers may also be eligible for financing the down payment portion of the contract.
EX-IM Bank financing may be available for used and refurbished equipment.
The loan tenor is determined by the value of the goods and their useful life.
For non-qualifying buyers, loans may be available indirectly through one of Wachovia’s 3,000 local bank relationships.
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