Our Export Financing Program

The Problem

Most U.S. companies that export overseas require their foreign buyers to pay for the goods either in cash or with an irrevocable Letter of Credit confirmed by a U.S. bank. Many foreign buyers may not want to disrupt their cash flow and Letters of Credit can be costly. These payment arrangement terms are problematic, they hinder the international trade transaction and are no longer competitive terms in the international marketplace.

The Solution

With Drake Finance Group’s export finance program, U.S. exporters will increase their sales by offering their foreign buyers financing terms, eliminating the requirement that foreign buyers pay in cash or with an irrevocable letter of credit. Additionally, the foreign buyer is able to obtain financing from us at very competitive interest rates, which are not available in the foreign buyer’s local market.

How It Works

Foreign buyers of all sizes are eligible to apply for our international trade finance programs, as long as the foreign company’s credit history and financial data satisfy our underwriting criteria. The underwriting process involves an analysis of the foreign buyer’s financial statements, review of credit bureau reports and other information provided, evaluation of the foreign buyer’s industry and the local economy. Our in house underwriters and lawyers begin underwriting the deal as soon as Drake Finance Group receives the information. If our underwriting criteria are met, we issue a letter of intent to the foreign buyer usually within 48 hours. Once we receive a signed the letter of intent, our team begins preparing the necessary documents to obtain approval from our financing guarantor, the U.S. Export-Import Bank. Once approved, Drake Finance Group sends the loan documents to the foreign buyer for execution, the shipment of US capital equipment or bulk agricultural products takes place, and the US exporter gets paid upon shipment.

Our Export Finance Programs Include

Medium term trade financing for end users of capital equipment in foreign countries, with repayment terms from 2 to 10 years. Rental or inventory financing for companies in foreign countries that buy then rent or sell the capital equipment to another local business. Short term trade financing for foreign importers of bulk agricultural products, with repayment terms up to 360 days.

Initial Documentation Required From Foreign Companies

A description of how the financed capital equipment will be used. Company’s annual reports or financial statements for the past 3 fiscal years, including balance sheets and income and cash flow statements. Statements must be in accordance with generally accepted accounting principles. Audited statements are required for deals over $1 Million. Interim statement are required if the last fiscal year ended more than 6 months ago.