United States government through cooperation with US banks have developed financial program to support US manufacturers. The underlining principle behind this program is assistance in financing export contracts for US manufacturers and foreign importers. This allows foreign importers to receive necessary financing – in form of low interest credit – to purchase goods, services, and equipment produced in US.
The financing is done specifically for the contracts between the Importer and Manufacturer..Each project is considered based on your business plan, your company’s experience in the industry and its financial history. Additional factors can influence interest rate and loan terms.
Type of Equipment Financed
We offer wide range of options but to give you an idea, this short list outlines typical equipment financed through this program:
ü Construction equipment
ü Construction materials (concrete, steel, cement, etc.)
ü Sawmill Machinery
ü Factory equipment
ü Raw material and other commodities
ü Commercial transportation (buses, trucks, etc.)
ü Sea vessels, fishing equipment and processing machines
ü And more!
Benefits of Purchase Financing vs. Other Options
There are numerous benefits to this program compared to other options.
– Because US Government acts as a guarantor for the creditor bank – many “high-risk” projects can be considered. Typically, those projects were rejected in other financial institutions. Without a government guarantee those projects are typically considered outside of bank’s risk tolerance.
– You can receive equipment right away while deferring payment until business is profitable.
– Unlike in the private investor sector, you DO NOT HAVE TO GIVE UP OWNERSHIP of your company. This is major benefit of using this program. Many investors ask for half of the business ownership, most ask for controlling share.
– Equipment is not leased. Your business owns all purchased equipment.
– Many of our manufacturers have offices and plants world-wide– fast, reliable support and maintenance. Many complex equipment manufacturers will provide qualified and certified engineer on-site to assist your engineers with setup, training, and maintaining of the product.
– All of the equipment is made in United States with quality materials and comprehensive warranty coverage. Better equipment lasts longer and performs better.
– Manufacturers offer additional insurance and extended warranties.
– Each manufacturer is selectively picked and screened by the bank, our company, and third party to ensure that they can fulfill their contractual obligations to the client.
– Many manufacturers have over 10 years of solid experience in the industry while some company have 50 or more years of production.
– We work with world recognized brands like John Deere, Caterpillar (CAT), Spancrete, Reid Flemming, and many others established companies.
In order to be considered for this program you should follow several preliminary steps. Extensive overview and due diligence will be conducted on paperwork presented to us: business plan, financial projections, balance sheets, industry overview, and other documents from you. Typically, we ask that our potential client:
ü Has been in business for over a year
ü Has positive or neutral financial history (cash flow/net) for his business
ü Has at least 10-20% of capital for purchase of equipment (down-payment)
ü Is NOT a start up business seeking 100% financing
ü Can cover the costs of operation, transportation, import taxes, and other business related expanses
ü Business executive board can demonstrate expertise in different areas of the industry
Of course, each project will be considered and reviewed even if business does not meet some or many of these recommendations. If you feel you have unique position or have a different kind of strengths in your industry, we will gladly discuss your project.
Interest rates will depend on the length of the loan, size of the business, amount of down-payment, and risk factors of the business. Loan lengths can be:
– 1 – 6 years
– 7 – 9 years
– And over 10 years
Interest rate will be set by a creditor bank. Because this is Government sponsored program, banks have restrictions on how they set up this loan and interest rates are typically between 4% to 10%. Banks have to go through government screening to be participant of this lending program. We work with top banks only: Wells Fargo Bank NA, HSBC, Chase Bank, Fifth Third, and several others.
In order to be considered for equipment financing, please understand the following:
– This is low interest loan for the equipment purchase
– This is NOT a lease of equipment and this is NOT a leasing program
– Loan, despite being insured by US Government, MUST be repaid according to the loan terms
– US Bank will pay manufacturers directly
– Client must have official representative in US to be considered for this program
– This is financing for equipment, service, commodity, or raw material
– Bank does NOT enter as a business venture, partner, or investor; bank simply acts as a creditor with US Government as a guarantor.
Once you evaluate your business needs and requirement based on information provided here, please contact us with brief project overview.
Our agent and managers will study the project description, consult with appropriate experts and will schedule an introductory conference with you to discuss details.
Our company, Global Net Advantage LLC, is not the crediting bank. We perform function of representing client’s company in United States to the crediting banks. Without having representative in US, through our company, obtaining financing becomes impossible. Only business with valid tax identification in United States can represent the applicant.
Once we begin working together, non-disclosure and non-compete contracts must be signed among all parties involved. At this stage, our company will ask for complete business plan, full disclosure, and additional reports or documents needed for comprehensive evaluation prior to working with US bank.
Additional information can be obtained by directly contacting one of our representatives or any of our daughter companies (ACCEPTING BEST TRADITIONS LLC)