The Company targets importers, exporters and financial institutions in its target geographies. Each potential customer must have access to multiple sources of credit such as banks and/or suppliers. The Company avoids situations where it would be the sole source of financing to a potential customer.

Products offered include but are not limited to the following:

• Discount of bankers' acceptances
• Discount of trade acceptances
• Import financing
• Pre-export financing
• Post-export financing (see Ex-Im Bank financing below)
• Warehouse receipt financing

As mentioned previously, although other financial institutions offer similar products, the Company believes it has a clear and distinct advantage in quick delivery of customized solutions to meet customer needs and documenting these transactions in a manner that allows the Company to fund the transactions with or without recourse to the Company. The use of negotiable instruments such as drafts is important in order to allow for transfer of title and maximum flexibility in accessing different sources of funding.

The Company's short-term financing arrangements are generally secured or otherwise guaranteed, sometimes by correspondent banks ("avals"). Typical collateral other than guarantees include bills of lading, warehouse receipts and other documents of title, as well as proceeds, receivables and trade acceptances. The coverage ratios vary depending upon, among other factors, the customer's financial condition, the economic conditions in the customer's home country and the value and type of collateral. In addition, as a result of the relatively short-term nature of the financing, some credit extensions are undertaken on an unsecured basis. This type of credit is extended based on a favorable credit review of the customer as well as relatively stable economic and political conditions in the customer's home country.

The Company also works with exporters in the United States and abroad in order to purchase trade acceptances/bankers' acceptances where the underlying risk is a company or bank in the Region. This type of activity is critical since generally the local financial institutions are not willing to lend against this type of receivable unless insured or credit enhanced in some manner. This type of operation, similar to "forfaiting", allows the Company to intermediate and earn a spread on the purchase/sale of drafts or earn fee income related to committing to purchase drafts at a future date.

All transactions must be presented for approval to the Company's credit committee.