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| Pre-export working capital |
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While Meridian does not provide purchase-order financing or pre-shipment lines of credit directly to U.S. exporters, we do have considerable experience with Ex-Im Bank, SBA, and other federal, state, and private-sector pre-export loan and guarantee programs, and we’re pleased to refer exporters to local banks and asset-based lenders who do extend these kinds of export finance. Ex-Im Bank and SBA guarantees, as well as other kinds of pre-export purchase order financing, are available when a foreign buyer will be paying (a) via a letter of credit or (b) on open-account credit terms IF the exporter or the lender has an export credit insurance policy to protect against non-payment risks once the order has shipped. In some cases export credit insurance can even provide protection for exporters and lenders prior to shipment, for example covering against contract frustration due to the bankruptcy or insolvency of a buyer, government actions or political events in the buyer’s country, and/or other risks. Pre-shipment coverage is not available for arbitrary or capricious contract repudiation by the buyer, unless the contract involves an agency of a foreign government. |
| Custom financing structures |
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Meridian is often approached with proposed export finance deal structures which we have neither seen before nor even could have imagined, yet we’ve gone on to arrange financing for them. Call or e-mail us with the highlights of your prospective transaction. We’ll respond quickly with a proposal or suggestions of how to restructure the deal to make international trade finance more feasible. If Meridian can’t do the job we may know who can, in which case we’ll be pleased to refer you to other resources. |