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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.