Equipment Finance (Process)

Tradeline can assist in bridging the funding gap that often occurs when businesses are importing plant and machinery from overseas.

Tradeline-copyright-Machinery

In the majority of cases the exporter will require payment in full upon shipment, but the financier will only release funds once the equipment has landed and cleared customs.

This is how it works;

  1. Supplier paid up front
  2. Equipment and machinery are unencumbered enabling them to be financed once landed.
  3. Goods delivered
  4. Tradeline facility repaid from the proceeds of the pre-approved equipment finance transaction.


Here is a practical example of how the equipment finance process worked for one of our clients.

Example:

Equipment: Digital Printing Machine (USD $167k)

  • Long established family run business with no experience in Imports and Currency Exchange.
  • Introducer was an experienced EF operator but little exposure to FX or cross border transactions.
  • Equipment manufactured in China.
  • Equipment Finance approved by a major bank.
  • Scottish Pacific Tradeline (SPT) recommended an experienced Freight Forwarder.
  • Letter of Credit payment against a copy of original Bill of Lading.
  • Seller agreed for 10% deposit and 90% balance payment by SPT against copy of original Bill of Lading.
  • Supplier paid upon shipment.
  • SPT also facilitated the Forward Exchange Contract to ensure zero FX risk.
  • Worked closely with Bank Settlements team to complete the EF settlement and take out the Tradeline facility.
  • Facility paid out by bank. SPT fees, along with import freight and duty charges, included in the EF facility.

If you'd like to know more, contact your nearest Tradeline branch.

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