International Trade Finance with Drake Finance
As a world-class international trade finance lender for international buyers and sellers, Drake Finance has become an industry leader in the world of international trade finance.
International trade finance functions as a safety net for export and import operations. Conducting business and shipping internationally carry several unique risks, one of the most apparent being the potential for non-paying buyers. Drake’s international trade financing programs offer exporters liquidity and buyers can purchase goods on reasonable credit terms.
Many international trade deals depend on trust: the seller takes it on faith that the buyer will pay for their goods, and the buyer trusts the seller to deliver what was promised. However, when payment discussions begin, the two parties generally want two very different payment terms. The buyer may not want to pay until they’ve received their goods, which mean the seller must wait for the shipment to arrive, and risks losing inventory or profits if the buyer does not honor its agreement. Conversely, sellers want payment up front, which may be an unattractive selling point for buyers.
- Growing business internationally
- Extending aggressive open account payment terms of up to 180 days
- Receiving 90% cash in advance payment upon shipping
- Reducing the risk of foreign buyer nonpayment by 95%
- Strengthening relationships with suppliers, distributors, and buyers, and
- Obtain non-recourse lending, no blanket liens required on certain programs.
The Foreign Buyer can benefit by:
- Growing its business by purchasing more product on better terms
- Gaining immediate access to purchasing power based on credit
- Getting competitive financing rates, much more attractive than local market rates, and
- Improving cash flow with extended payment terms.
Drake Finance creates win-win situations for all parties involved. U.S. exporters can sell more of their product internationally with less risk and higher profit margins by extending credit to foreign buyers but still getting paid upon shipment. Foreign buyers can purchase more products on credit at better terms, to enhance inventory to meet local demand and at the same time preserve cash flow.