Financing is often the biggest hurdle to doing business in Frontier and Emerging Markets. Interlink offers various solutions through its own resources and those of its partners and affiliates to enable companies to access the financing required to grow business in these markets, which now represent more than half of the world's GDP.
Solutions for Exporters
- Purchasing Order and Contract Financing
- Revolving Lines of Credit
- Term loans for your Buyers
Solutions for Buyers/Importers
- Purchase Order and Contract Financing
- Term Financing
Solutions for Project Sponsors and Developers
ICS has extensive experience in structuring the financing for infrastructure, energy, agriculture, and projects in many other key sectors. Working together with key Development Finance Institutions, Interlink has successfully arranged over a billion dollars of project financing in emerging markets. Click here to tell us a little more of your project.
Solutions for Other Companies
If your needs were not discussed above, Interlink can still provide your financing needs. Let us know more about your needs Click here.
The Case for Trade Finance:
The Case for Trade Finance:Trade finance provides the mechanism that allows exporters to receive payment in advance, which is most desirable to them; while allowing importers to receive payment terms from a third party.
Cash in Advance
- Payment before shipment
- Most beneficial to exporter
- Eliminates non-payment risks
- May lose customers to competitors who offer payment terms
- Recommended for high-risk trade relations
Open Account
- Payment with terms after shipment received
- Most beneficial to importer
- Increases competitiveness
- Significant exposer to non-payment
- Additional costs associated with risk mitigation measures
Working Capital
Extend revolving lines of credit or transaction specific loans to U.S. exporters comfortably working internationally to assist them in fulfilling overseas purchase orders and/or permitting them to extend more aggressive terms to their overseas buyers. These asset-based loans will provide for advance rates of up to 75% against export purchase orders (i.e. inventory – Raw, WIP, Finished Goods) and up to 90% against accounts receivables from overseas buyers.
Uses
Extend revolving lines of credit or transaction specific loans to U.S. exporters comfortably working internationally to assist them in fulfilling overseas purchase orders and/or permitting them to extend more aggressive terms to their overseas buyers. These asset-based loans will provide for advance rates of up to 75% against export purchase orders (i.e. inventory – Raw, WIP, Finished Goods) and up to 90% against accounts receivables from overseas buyers.
Uses
- Allows funds for materials, labor, inventory, goods and services for exports.
- Used to finance receivables from export sales, which increases competitiveness with foreign customers.
- Single or multiple buyers.
- For specific short-term transaction or as a revolving line of credit.
- Exporter may get credit insurance to reduce non-payment risk.
- The ability to obtain a working capital loan is dependent on the quality and strength of he U.S. company, the foreign receivables, and export related inventory.
Export Trading Company
Many SMEs in the U.S. are still uncomfortable conducting business internationally and would prefer to outsource this function to an expert. ExWorks can handle procurement, logistics, and structuring appropriate trade terms with foreign buyers and then buy the goods from the U.S.-based SME – ex works – like any domestic customer and take all of the risk.
Many SMEs in the U.S. are still uncomfortable conducting business internationally and would prefer to outsource this function to an expert. ExWorks can handle procurement, logistics, and structuring appropriate trade terms with foreign buyers and then buy the goods from the U.S.-based SME – ex works – like any domestic customer and take all of the risk.
- We have the ability to handle procurement, logistics, and structuring appropriate trade terms with the foreign buyer.
- We can buy goods – ex works – like any domestic customer and take all the risk in selling overseas.
Term Financing to Overseas Customers
Make loans ranging from two to five years or more to overseas buyers of goods and services from a U.S. exporter. Since the ability to provide financing on capital goods or large transactions is often required to make the sale, the ability to provide this type of financing to the buyer can substantially enhance a U.S. company’s ability to compete globally.
Term Loans to Foreign Customers
Make loans ranging from two to five years or more to overseas buyers of goods and services from a U.S. exporter. Since the ability to provide financing on capital goods or large transactions is often required to make the sale, the ability to provide this type of financing to the buyer can substantially enhance a U.S. company’s ability to compete globally.
Term Loans to Foreign Customers
- Expands export opportunities to high-risk emerging markets.
- Provides medium and long-term loans directly to foreign customers, which enhances sales package of U.S. company.
- U.S. company paid in full upon loan disbursement to foreign buyer.
- Supports 85% of the U.S. contract price depending on U.S. content value.
- The ability of foreign customers to obtain a term loan is dependent on the quality and strength of its financial statements, possible county limitations, and size and nature of the goods or services purchased.