Cross-border leasing can be considered as an alternative to equipment loans in some emerging foreign markets. Where finance leases are treated as conditional sales agreements, the only difference between international leasing and loans will be the documentation, with downpayments, payment streams, and lease-end options the same as offered under Equipment Loans to Foreign Buyers. The myriad kinds of leasing arrangements available in the U.S. market are not yet feasible in most cases for cross-border leasing transactions. Meridian is working with U.S. and foreign leasing companies to develop more flexible international leasing structures for export financing. Operating leases may be feasible for exports of large equipment with a long economic life relative to the lease term (i.e. consistent with FASB 13 guidelines for operating leases).

Meridian can customize Equipment Loans to Foreign Buyers to address the requirements of turnkey installations, technology transfers, infrastructure programs, franchise operations, maintenance contracts, and other kinds of projects. Progress payment financing may be available in some cases, particularly for projects involving foreign government buyers or end-users. International trade finance is more difficult to arrange for projects where the primary source of repayment will be the cash flows generated by the project itself. When there is no existing equity position, revenue stream, or satisfactory guarantor behind a new project, Meridian will get involved in trying to arrange project finance on a retainer basis only.

While Meridian does not provide purchase-order or pre-shipment financing, we are very familiar with all of the federal and state export loan guarantee programs and we maintain relationships with the banks and asset-based lenders who extend these kinds of loans and revolving lines of credit. We are always pleased to refer creditworthy exporters to these resources. Export purchase order financing is available only when the foreign buyer will be paying by letter of credit, or on open-account terms if the exporter has Export Credit Insurance, or with longer terms such as when using Meridian's Equipment Loans to Foreign Buyers.

Meridian is often approached with proposed deal structures which we have neither seen before nor even could have imagined, yet we have gone on to arrange financing for them. Call, fax, or e-mail Meridian with the highlights of your prospective transaction. We will respond quickly with a proposal or suggestions of how to restructure the deal to make international trade finance more feasible. If Meridian cannot do the job, we may know who can and we will be pleased to refer you to other resources.