Floor Financing

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For capital equipment and machinery inventory.
Up to 21 months of credit
For the first 3 quarters only interest is paid (no principal payments)
During the last 4 quarters interest and principle is paid
Minimum amount US$500,000
12 months to use the credit line
If the equipment or machinery is sold prior to 21 months, the borrower pays the principle and interest amount of the loan only up to the payment date for the equipment sold.
80% financed of the total invoice amount.

Equipment and machinery from diverse manufacturers and industries.
Accessories to said equipment and machinery.
Local costs: CIF value, taxes and duties, the dealer can finance the servicing of the equipment for the end customer for up to a year

The equipment must be manufactured in the USAwith a preponderance of US components and value added.
The equipment must be new, and exported from the USA.
The Dealer (Borrower) must have at least 3 years of audited financial statements.
Borrower must be located in a country that is not barred from working with Ex-Im Bank

The Eximbank Country Risk premium is integrated into the financing. This cost is derived from Exim, and is for the lenders coverage over the financed amount. It varies from country to country.
Approval fee: There is an approval fee. It is charged when the credit is approved or it can be integrated into the financing.
Interest Rate: indexed to the 3-Month LIBOR plus a spread. This is most likely between 2.5%-4% per year in total

Much more competitive than local financing.
Local financing may only provide working capital loans. This does not benefit the borrower.
TNo payments of principal for the first 3 quarters.