A commercial asset-based loan
is a debt instrument secured by a pool of assets,
which primarily includes accounts receivable and inventory, and may also
include equipment, real estate and special assets like intellectual property.
The amount generally available under the line of credit is calculated as
a percentage of each of these asset classes.
Learn more about our Asset-based Lending
offering >>
Factoring
is used to outsource a company’s credit decisions and
collections process for trade accounts receivables. The factor
is able to recommend credit
limits for the company’s customers and collect amounts due. Furthermore,
advances to the company can be made by the factor on outstanding invoices
to provide working capital financing. Factoring has been used for centuries
and is very popular in Europe.
Learn more about our Factoring offering >>
Agreement between Siemens First Capital and a foreign exporter
under which Siemens First Capital provides:
- Up to 100% guarantee of the importer’s credit risk (post-shipment
as well as new Pre-Delivery Guarantee – available up to
60 days prior to shipment for 50% of exporter’s sale price
to importer)
- Accounts receivable collection service
- Cash application services (no advances)
Learn more about our Import and Export Factoring >>
A letter of credit is a binding document that an importer can request
from Siemens First Capital in order to guarantee payment to the seller for goods or services supplied.
In order for the payment to occur, the seller has to present First
Capital the necessary shipping and other documents confirming the delivery
of goods/services within a given time frame. It is often used in international
trade to eliminate risks such as the bankruptcy of the importer or foreign political or economic instability.
Learn more about our Letters of Credit >>
Trade Payable
Funding is an unsecured working capital tool that encourages foreign
suppliers to offer North American importers
extended payment
terms. The program assures foreign suppliers immediate, non-recourse
payment once the importer confirms its obligation to pay for
goods and services supplied.
Importers evidence their irrevocable payment obligation by signing
a Trade Draft, an international payment instrument, which First
Capital immediately discounts to the supplier. Siemens First Capital
collects funds
from the Importer on the maturity date of the Trade Draft.
Learn more about our Trade Payable Funding >>
Trade Acceptance Discounting is an unsecured working capital tool that encourages exporters to offer importers extended payment terms. First Capital assures immediate, non-recourse payment to exporters once the importer confirms its obligation to pay for goods and services supplied. When necessary, Trade Acceptance Discounting can be used
to ensure that title to goods is not transferred until payment
is assured.
Importers evidence their irrevocable payment obligation
by signing
a Trade Draft, an international payment instrument, which First
Capital immediately discounts to the exporter. First Capital
collects funds
from the Importer on the maturity date of the Trade Draft.
Learn more about our Trade Acceptance Discounting >>
