What Projects Will Interlink Accept or Deny
There are no minimum requirements for Interlink to accept or deny a project. Instead, we consult with potential clients and conduct a thorough inspection to understand the value that Interlink can add. Interlink will generally accept a project where it feels that it can make a significant and valuable contribution to the client.
What is Interlink's Process
The Interlink process is straightforward and simple:
- Submission of introductory information to Interlink. (Links to the appropriate forms can be found in the related Services page.)
- An initial review of the business opportunity-by phone or in person. (no charge)
- Upon submission of additional information (as needed), an initial financing and/or marketing development plan will be formulated. (no charge)
- Formal proposal, after a survey of the market to determine success. (no charge)
- Implementation of the plan. (retainer/milestone fee plus success compensation on results achieved)
What is Trade Finance
Trade finance relates to the process of financing certain activities related to commerce and international trade. Trade finance includes such activities as lending, issuing letters of credit, factoring, export credit and insurance. Companies involved with trade finance include importers and exporters, banks and financiers, insurers and export credit agencies, and other service providers. In its simplest form, trade finance works by reconciling the divergent needs of an exporter and importer. While an exporter would prefer to be paid upfront by the importer for an export shipment, the risk to the importer is that the exporter may simply pocket the payment and refuse shipment. Conversely, if the exporter extends credit to the importer, the latter may refuse to make payment or delay it inordinately.
What is Term Financing
Term Financing is a credit option for companies that can guarantee a loan with an existing balance sheet, or with the balance sheet of a guarantor. In general, this is an option available to large companies with balance sheets that are large enough to back the loan, or a company with a bank or government guarantee.
What is Project Finance
Project finance is the financing of long-term infrastructure, industrial projects and public services based upon a non-recourse or limited recourse financial structure, in which project debt and equity used to finance the project are paid back from the cash flow generated by the project. Project financing is a loan structure that relies primarily on the project's cash flow for repayment, with the project's assets, rights and interests held as secondary security or collateral. Project finance is especially attractive to the private sector because companies can fund major projects off balance sheet. A simplified project financing structure for a build, operate and transfer (BOT) project includes multiple key elements.
What are Emerging Markets
An emerging market, or emerging market economy is a nation's economy that is progressing toward becoming advanced, as shown by some liquidity in local debt and equity markets and the existence of some form of market exchange and regulatory body. Emerging markets are not as advanced as developed countries but maintain economies and infrastructures that are more advanced than frontier market countries. Emerging markets generally do not have the level of market efficiency and strict standards in accounting and securities regulation to be on par with advanced economies (such as the United States, Europe and Japan), but emerging markets do typically have a physical financial infrastructure, including banks, a stock exchange and a unified currency. Investors seek out emerging markets for the prospect of high returns, as they often experience faster economic growth as measured by GDP. Investments in emerging markets come with much greater risk due to political instability, domestic infrastructure problems, currency volatility and limited equity opportunities, as many large companies may still be "state-run" or private. Also, local stock exchanges may not offer liquid markets for outside investors.
What are Frontier Markets
Less advanced capital markets from the developing world. Frontier markets are countries with investable stock markets that are less established than those in the emerging markets. They are also known as "pre-emerging markets". The frontier, or pre-emerging, equity markets are pursued by investors seeking potentially high returns who are able to accept the higher risks these type of markets would be exposed to. Some of the risks investors face in these frontier markets are political instability, poor liquidity, inadequate regulation, substandard financial reporting and large currency fluctuations. In addition, many markets are overly dependent on volatile commodities. Frontier market investments can have a low correlation to developed markets and thus can provide additional diversification to an equity portfolio.
Who is Ex-Im Bank
The Export-Import Bank of the United States (EXIM) is the official export credit agency of the United States. EXIM is an independent, self-sustaining Executive Branch agency with a mission of supporting American jobs by facilitating the export of U.S. goods and services. When private sector lenders are unable or unwilling to provide financing, EXIM fills in the gap for American businesses by equipping them with the financing tools necessary to compete for global sales. In doing so, the Bank levels the playing field for U.S. goods and services going up against foreign competition in overseas markets, so that American companies can create more good-paying American jobs. Because it is backed by the full faith and credit of the United States, EXIM assumes credit and country risks that the private sector is unable or unwilling to accept. The Bank’s charter requires that all transactions it authorizes demonstrate a reasonable assurance of repayment; the Bank consistently maintains a low default rate, and closely monitors credit and other risks in its portfolio.
What is an ECA
An export credit agency (ECA) is a financial institution that offers financing to domestic companies for international export operations and other activities. ECAs offer loans and insurance to such companies to help remove the risk of uncertainty of exporting to other countries and underwrite political risks and commercial risks of overseas investments, thus encouraging exportation and international trade. There is not a mold for a typical export credit agency; some operate from government departments, and others operate as private companies. ECAs act as intermediaries between a nation’s government and an exporter in order to provide some type of financing. Financing can take one or more forms, depending upon the exporter’s needs and the mandates that have been given to the ECA. An ECA may provide credit insurance; financial guarantees, which are referred to as pure cover; or both. As an example, in the United States, the official ECA is the Export-Import Bank of the United States (EXIM), an independent executive branch agency.
Who is OPIC
he Overseas Private Investment Corporation (OPIC), the U.S. Government's development finance institution, mobilizes private capital to help solve critical development challenges and in doing so, advances U.S. foreign policy. Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets, catalyzing revenues, jobs and growth opportunities both at home and abroad. OPIC achieves its mission by providing investors with financing, political risk insurance, and support for private equity funds.
What is a DFI
A development finance institution (DFI) is an alternative financial institution which includes microfinance institutions, community development financial institution and revolving loan funds. These institutions provide a crucial role in providing credit in the form of higher risk loans, equity positions and risk guarantee instruments to private sector investments in developing countries. DFIs are backed by states with developed economies. In 2005, total commitments (as loans, equity, guarantees and debt securities) of the major regional, multilateral and bilateral DFIs totaled US$45 billion (US$21.3 billion of which went to support the private sector). DFIs provide finance to the private sector for investments that promote development and to help companies to invest, especially in countries with various restrictions on the market.