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U.S. EX-IM Bank Financing Activities
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The Company has identified a tremendous opportunity to add medium term trade-related finance as a complement and cross-sell opportunity to its current range of activities. The Company will focus on U.S. Government programs, initially from the Export-Import Bank of the United States ("Ex-Im Bank"), to provide export finance services to U.S. exporters, as well as, importers of U.S. products and services in the region. The Company's strategy is to focus primarily on transactions below $10 million. The Company believes that there is limited and decreasing support from banks and financial institutions in general for smaller transactions that need Ex-Im Bank financing, therefore creating an opportunity to satisfy unmet demand for medium and long term financing for U.S. products in the region. At the same time, by focusing on U.S. products, the Company will help U.S. exporters provide financing options to its customers in the region, which will help exporters be more competitive against exporters from elsewhere in the world.
The Company's strategy is to be "client focus". For both, U.S. exporters or importers, the Company wants to provide export finance solutions using the best-suited product on Ex-Im bank's portfolio. The Company will use Insurance or Guarantees, depending upon the product being exported, the type of arrangement needed by the customer and the maturity required on the loan. The Company will originate transactions using a mixed approached that includes contacting exporters, importers and through a network of finders and referrals. The Company looks at establishing solid relationships with U.S. exporters in order to help them manage financing needs of their customers in the region. For this purpose, the Company and the group of advisors have an extensive list of contacts among U.S exporters. On the importer side, the Company has very strong relationships across different industries through Central America, the Caribbean, and Andean Region and to a lesser extent the rest of Latin America. The Company will approach companies in the region to offer Ex-Im Bank programs where there is U.S. products being imported that need medium term financing not available in the local market. One of the objectives is to establish relationships with importers that buy a sustained flow of imported goods from the U.S. and help these firms manage their financing needs using Ex-Im Bank programs. Finally, the Company has already a network of people on the ground that can refer transactions that need Ex-Im Bank support to the Company.
In addition to Ex-Im Bank's established products, the Company will dedicate time and effort and seek assistance from Ex-Im Bank to develop additional financial products for exporters. The Company has a special interest on the SBA sector where transaction size represents an obstacle for most financial institutions to assist exporters. The Company is also interested to explore project finance and structured loans type of transactions, where most financial institutions don't participate unless the dollar amount is significant.
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