Medium- and Long-term Financing
Unit 8.1-Medium- and Long-term Financing |
Introduction | Ex-Im Bank Programs | Financing Programs | Multilateral Organizations | Summary | Resources | Activities | Assessment |
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.
The goal in this lesson is to introduce you to sources of medium- and long-term finance for an overseas buyer (internal/external) which can offer a buyer extended payment terms while providing cash payment to the seller without recourse.
By the end of this unit you will be able to
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Unit Outline
- Introduction
- Ex-Im Bank Programs
- Other Medium- and Long-Term Financing Programs
- Multilateral Organizations
- Summary
- Resources
- Activities
- Assessment
Resources
File:Unit 8.1 Outline Presentation Slides.odp
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)