Pre-Export Purchase Order Working Capital Program
United States exporters should not turn away business on account of a purchase order being too large or too costly to fill. Drake Finance provides United States exporters with the necessary capital to realize even the most demanding purchase orders from international customers.
Through this program, Drake Finance will advance up to 100% of the exporter’s purchase order directly to its supplier within 24 hours of approval when the materials purchased are in connection with an export sale.
How Pre-Export Finance Works
1. The United States exporter provides Drake Finance with a copy of the following:
- Purchase Order to supplier from U.S. exporter
- Invoice from supplier to U.S. exporter
- Purchase Order from international customer to U.S. exporter
- Invoice to international customer from U.S. exporter
Upon successful review, Drake Finance will advance up to 100% of the exporter’s purchase order directly to its supplier within 24 hours.
2. Once the United States exporter receives its supplies and ships its product to its international buyer, the United States exporter provides Drake Finance with a copy of the following:
- Bill of Lading from Transport Company, evidencing the export shipment
3. At this point, the exporter can choose to either finance its export sale with us or pay for its pre-export financing through a Letter of Credit from its foreign buyer or cash.
Export Receivable Financing: If the exporter chooses to finance its export sale with us, Drake Finance will advance up to 90% of the invoice total directly to the United States exporter, minus pre-export financing fees and any applicable interest. Export Receivable Financing allows the exporter to extend open account payment terms to its foreign buyer. The foreign buyer pays us and once Drake Finance collects payment on the invoice in full, we remit the remaining 10% minus our fees back to the United States exporter. It’s that simple!
Recap: The United States exporter was able to purchase its supplies to fill an international customer’s large purchase order. Because the exporter also financed the export sale with Drake Finance, it was able to pay for its pre-export financing using its foreign receivable as collateral. Other forms of payment for pre-export financing include a Letter of Credit from the foreign buyer and cash.
Getting Started is Easy!
Take a moment to fill out our online application and we’ll get back to you within 1 business day. United States exporters are encouraged to submit the last 2 years of company-prepared financial statements to firstname.lastname@example.org for immediate consideration. Approval for this program averages 15 days.
Contact us for more information or call (305) 854-0101 to speak with our Managing Principal and Board-Certified International Lawyer, Richard H. Lopez, Esq. directly.
Applying with Drake is Fast, Free, and Simple!