In our last blog, we discussed how medium term insurance can benefit you. This week we will discuss how to get medium term insurance. Impello Global is here to help you with the process and have it run smoothly for both you and your customer.
Talk to your customer
Find out if your customer wants financing. If so, what repayment terms are they seeking? Would three to five-year financing help you to secure the sale? If medium-term financing is of interest, it is critical to set expectations of the timeframe, how soon is the customer expecting to close? Once we have an idea of the deal structure, our team will put together a term sheet with pricing, terms and conditions to see if the customer has an interest in the program. If there is interest, a minimum of two years of audited financial statements and historical relationship information should be gathered.
Identify a bank or lender
Once we’ve determined your customer is qualified, there will be a few paths to take. We will identify whether a bank or lender would partner up with the company in order to give direct credit to the customer or if the exporter wants to lend to the customer themselves. If the exporter is the initial “lender”, we will work with the exporter to arrange for a lending partner, usually a bank, to purchase the note from the exporter after the transaction is complete. We would then go back to the customer with firm pricing for the loan and insurance.
Once the policy is approved
Upon approval of the policy, there will need to be documentation signed between the lender and the buyer, typically a loan agreement and a promissory note. We will also determine if a lien or security interest is required.
Impello Global is here to help from the beginning to end and everything in between. The medium term insurance process can be complicated and we have the experience and expertise to push through any hurdle. Let us help you and your customer to have a smooth, successful experience.
About Impello Global
Impello Global is a US based trade finance advisory boutique and trade credit and political risk insurance brokerage. We specialize in trade credit and political risk insurance and provide advisory services to companies and lenders who are looking to expand their trade finance capabilities.
If you are a company or a lender trying to better understand trade credit insurance or EXIM Bank programs and looking for guidance about how these programs can help improve working capital or medium term financing, our team would be delighted to learn more about your business and discuss options available to you. Please visit our website at www.impelloglobal.com or contact us directly at info@impelloglobal.com.