Short & Medium Term
Foreign Receivable Financing
Confirmed Purchase Order
Whether you're a buyer or a seller, domestic or international, importer or exporter, you're probably looking for a new way to transact business with minimal risk, cost or hassle. And First American has the solution - with our exclusive Confirmed Purchase Order (CPO) program.
With a First American Bank CPO you get the best of all possible worlds - a security of a letter of credit, combined with the freedom and convenience of open account terms. Some of the key benefits are:
- The seller has First American's promise to cover the cost of goods.
- The bank approves the buyers and administers all transactions.
- There are fewer administrative costs to pay and fewer bank fees.
- The buyer does not have to make a down payment and the seller does not need to tap into a local line of credit to carry the receivables.
- Foreign buyers have access to U.S. market lending rates.
- The document review is expedited and document ownership is protected.
- The transaction is facilitated more quickly and without hassles. Advances against the invoices can be made within a day or two of shipment.
STAR (Short Term Accounts Receivable) Financing
STAR is a more flexible short term financing product that provides up to 80% advance rates against a pool of acceptable insured foreign receivables. Export credit insured receivables are eligible in a borrowing base that can be submitted as frequently as needed. The line of credit is prime based and is established based upon a Borrower's financial position and credit insurance policy. A yearly audit of accounts receivable management is required.
Purchase Order Finance
SBA Export Working Capital Program
The Export Working Capital (EWCP) loan provides advances for up to $5 million to fund export transactions from purchase order to collections. This loan has a low guaranty fee and quick processing time.
With an approved EWCP loan in place, you have greater flexibility in negotiating export payment terms. However, disbursements can only be made against firm purchase orders from a foreign buyer or to support foreign accounts receivable.
Use of Proceeds
- Financing for suppliers, inventory, WIP, or production of export goods or services
- Working capital to support foreign accounts receivable during long payment cycles
- Financing for stand-by letters of credit used as bid or performance bonds or as down payment guarantees
Medium Term Financing
For transactions requiring repayment terms longer than one year, First American Bank may be able to provide medium term financing solutions based upon insuring the foreign buyer under either a private or public sector export credit insurance policy. Preliminary financing quotes, for bidding/negotiating purposes, covering the cost of the insurance and financing terms can be provided by contacting a Trade Finance Officer. Medium term repayment terms are generally quarterly or semi annual for up to five year terms. Interested exporters should be able to provide financial information and trade/bank references on the buyer for firm quotations.