Medium-Term Financing

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    Medium-Term Financing

    • For the End-User of the equipment and Dealer Rental Fleets
    • For capital equipment and machinery
    • Up to 6 years of credit
    • Quarterly payments of principle and interest.
    • First payment is 6 months after export date or date of installation.
    • Minimum amount US$500,000
    • 6 months to use the credit.
    • 85% financed of the invoice amount.

    What Can Be Financed Under the Medium-Term Program

    • Equipment and machinery from diverse manufacturers and industries.
    • Accessories to said equipment
    • 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.

    Requirement Under the Medium-Term Program

    • The equipment must be manufactured in the USA, with a preponderance of us components and value added.
    • The equipment must be new and exported from the USA.
    • The 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 Eximbank.

    Medium-Term Finance Costs

    • The Eximbank Country Risk Premium is integrated into the financing. This cost is established by 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.

    Borrower Can Select a Fixed or Variable Interest Rate

    Fixed Interest Rate

    • Indexed to the 3-Year TreasuryNote rate + spread.
    • With today’s low interest rate, thiscan range between 2.75%-4.5%,
    • The rate stays fixed for the life ofthe loan.

    Variable Rate

    • Indexed to the 3-month LIBORrate + spread.
    • The rate in today’s market canrange between 3%-4.5%
    • The rate is adjusted every 3months according to Libor.

    Benefits of Exim Supported Medium-Term Finance

    • Much more competitive than local financing.
    • Longer finance terms than that of local financing.
    • Improves borrowers ́ credit in the international profile.

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