Political risk insurance coverage is purchased by lenders who extend term loans, revolving credit lines, project finance, debt/equity investment, or other financing to borrowers or projects located in high risk foreign countries. These policies can also cover loans to U.S. companies for their international operations. Payment defaults are covered if caused by expropriation, political violence, currency inconvertibility, or other government actions or political risks.

Financial institutions lending on the basis of assets located in other countries can obtain collateral deprivation insurance to protect against the inability to exercise their legal rights over their collateral following a default.

International trade finance insurance is purchased by U.S. lenders making loans and leases to companies in emerging foreign markets for the purpose of buying capital equipment from U.S. exporters. Protection against all commercial and political non-payment risks, in some cases for up to 100% of the loan amount, can be structured with terms of up to five years.

Letter of credit insurance is purchased by U.S. banks that confirm, discount, or otherwise finance commercial letters of credit issued by banks in developing or risky economies. Banks with letter of credit insurance are protected against non-payment by the issuing bank for any reason following presentation of conforming documents.

A growing number of U.S. lenders are providing revolving short-term financing overseas, particularly for individual large foreign companies that are purchasing from multiple U.S. suppliers. These lenders can cover all commercial and political non-payment risks with short-term foreign buyer underwriting. While managing the concentration of risk associated with a single borrower, foreign buyer credit insurance also enables a lender to do business with all of the debtor's U.S. suppliers . . . some of whom may become new "relationship" prospects for the lender as well.

Meridian Finance Group does not provide any direct financing for U.S. companies. The word "Finance" in our name refers to Meridian's facilities for extending multi-year financing to equipment buyers located in other countries.

When we offer export credit insurance to our U.S. clients, they sometimes require financing for their short-term foreign receivables (and/or their domestic receivables, inventories, and other assets). We refer these exporters to local banks or other asset-based lenders. If you are interested in financing credit-insured foreign receivables, let us know your lending parameters and we would be pleased to refer prospects who fit your customer profile.

All referrals to Meridian are handled in the strictest confidence and with the greatest respect of the relationships between referring lenders and their customers.

Give Meridian a call if we can be of service to you or your customers, or feel free to have exporters contact us directly.