FOREIGN TRADE FINANCING

We offer support to our clients in the administration of financing lines for their foreign trade transactions.

To this end, we put at their disposal an important network of Institutional Investors whom, throughout the years, have trusted us as business originators and structuring agents.

 

The financing transactions’ options commonly used for this purpose are:

 

IMPORT FINANCE: It comprises the funding (domestic or foreign) of imported products and supplies. The range of this kind of financing structure can, even, reach up to end of the commercial process, including sale and collection. (1).

 

PRE-EXPORT FINANCE: Oriented to the funding of the process previous to the sale and/or dispatch of the products to the foreign buyer. In this case, there are different legal structures, execution terms, guarantees, that can be used.

SUDAFI has specialized in this type of funding, structuring complex transactions that combine different funding options, so that they can be adapted to the needs of every industry and client in particular. It is internationally known as Structured Trade Finance.
Although the characteristics of each type of transaction is very particular to every client, it is common to find two kinds of structures:
             Pre-financing of Export Products where there exists a CONTRACT OF SALE ALREADY CLOSED with a commitment of a future delivery. This structure can be applied on finished products or products still in the customer´s production line (1).
             Pre-financing of inventories where is not requested a CONTRACT OF SALE ALREADY CLOSED. In this case, it is simply called a STOCK FINANCING. As in the previous example, it can also be applied to finished products or products in the production line (1).


EXPORT FINANCE: This type of financing structure is applicable to the period before shipment. Commonly it implies the early collection of the export, since the moment of shipping documents are negociated. It is common to combine this type of structure with the Post-Export Financing in order to cover whole export process (1).



POST-EXPORT FINANCE: Under this structure, the financing occurs once the products have been shipped to destiny. It can even implies the domestic negociation of shipment documents (Export Financing). A typical transaction in which we have been participated is the Financing of Foreign Documented Receivables (1).

 

(1) Learn more about the implementation of these funding schemes