Medium- and Long-term Financing

Unit 8.1- Medium- and Long-term Financing
Providers of medium- and long-term financing such as Ex-Im Bank’s guarantees allow banks to finance buyers who would otherwise be unable to get financing either in the United States or in their home country because of the transaction size, risk, location of the buyer and the debt servicing associated with this type of financing. Medium-term and long-term financing are available for capital goods or services that have a useful life that extends beyond one year. A creditworthy buyer who cannot get financing from a local bank may find more favorable terms through Ex-Im Bank. These programs help make international transactions more attractive for both a buyer and a seller. Ex-Im Bank provides full payment to the seller, and the buyer gets financing that would not be available otherwise, thus allowing a transaction to move forward.

Unit Outline

 * Introduction
 * Ex-Im Bank Programs
 * Other Medium- and Long-Term Financing Programs
 * Multilateral Organizations
 * Summary
 * Resources
 * Activities
 * Assessment

Resources


Correlation: Materials from this unit correlate with NASBITE CGCP's Knowledge Statement 04/08/01: Knowledge of forms of medium- and long-term financing (e.g., government supported finance, finance provided by banks and financial institutions, lease financing)