Free Online Course in International Business
Task
Identify and arrange medium and longterm finance for an overseas
buyer (internal/external) to allow the buyer extended terms while
providing cash payment to a seller without recourse.
Introduction
There are fewer options in the marketplace for medium and longterm
financing of international sales. These limited options have created
a need for ExIm Bank to provide guarantees for such programs because
of the importance of increasing exports. In addition to the US ExIm
Bank programs, medium and longterm financing may be available from a
variety of multilateral organizations, export credit agencies,
regional development banks, and credit insurers. Occasionally, but
not often, funding may be available in the private sector. All of
the financing options have specific qualification requirements and
may be available only for specific types of projects, or in
particular geographic regions, or based on political relationships
between the countries involved in the transactions. In this module,
you will be introduced to of the forms of medium and longterm
financing, that is, governmentsupported finance, finance provided by
banks and financial institutions, and lease financing.
|