Export Financing Overview
Trade finance, already a specialized niche in the banking and financial services sector, becomes even more specialized when it focuses on just export financing. Export financing and the broader trade finance are enormously different from commercial and mortgage lending. Trade financing and export financing have to account for extended time frames in the transaction lifecycle because buyer and seller are separated by up to two oceans and 10,000 miles. It takes longer to communicate, longer to ship, and longer to get paid than with local transactions.
Export transactions are also impacted by internationally required trade finance due diligence, know your customer CIS requirements and anti-money laundering statutes that make trade and trade finance providers do the heavy lifting. The reliability and suitability of importers and exporters are also examined. With export financing, those investigations focus entirely on the export side of the ledger.
While import-export transactions financed with cash in advance, open account and consignment purchases do take place, they almost never do, so we focus on the 80% to 90% of the industry that relies on professional, value-add export financing.
Virtual Financial LLC stands ready to extend export financing services to you today. Take a look at the grid of export financing methods below to learn more and determine if you have a strong preference as to the type of trade finance we set-up. Click the Apply for Export Financing links or buttons to get your export financing started. If you’re not ready to apply for financing, we encourage you to learn more about the Trade Finance Solutions best suited for your deal.
Export Financing Solutions
Demand for export financing continues to rise amid the growing world shortage of trade finance. As it is becoming increasingly difficult to secure adequate trade financing, especially for small to medium-sized enterprises (SME) Virtual Financial LLC truly stands out as we continue to provide an uninterrupted flow of trade financing. We also enhance every application with unparalleled underwriting expertise and every transaction with Deal Structuring and Due Diligence advisory services. If you are having difficulty securing trade financing or if you applied for financing and were turned down by other lenders, submit a Trade Finance Request now, and we’ll get the financing for your deal started today.
Letters of Credit
We provide export financing services that include drafting instructions for Letters of Credit you accept from buyers, as well as letter of credit confirming services for exporters.
Bank Guarantees
When export financing involves Bank Guarantees to guarantee the importer’s obligations, we advise the exporter and negotiate terms if the importer fails to pay pursuant to the contract.
Monetization
We monetize financial instruments to provide export financing and pre-export financing for working capital and shipping expenses with little cost and almost no risk
Factoring
We offer very low-cost non-recourse accounts receivable factoring for export financing when you offer attractive purchase terms to foreign importers to gain a competitive edge.