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FEDA International Services, Inc.

Procurement | Negotiate Letters of Credit | Financing | Shipping | Consulting

Financing Overview

We can arrange financing for foreign buyers of United States manufactured goods and services through a network of banks and financial services entities in the U.S. and other countries.

FEDA works in partnership with various firms and government agencies in the U.S. and abroad to provide a smooth transactional experience for our clients.

In addition to equipment financing, FEDA can arrange financing for foreign buyers of United States agricultural products.

Prospective Borrowers

Borrowers must provide documentation and meet requirements which may include but are not limited to the following:

The borrower should have been in the same general line of business for at least three years and must meet the historical and financial criteria otherwise required of borrowers. These criteria are detailed below.

The borrower or guarantor must be able to provide three years of financial statements. It is generally required that these be audited with notes and opinions.

The borrower or guarantor must meet the following financial criteria:

Financing Procedure

An importer in a foreign country (“Importer”) agrees to a contract of sale or Proforma invoice with  an exporter for the purchase of equipment or services.

The Importer sends their audited financial statements for the last three years and a list of the equipment together with the signed Proforma invoice to the Exporter to be forwarded to the Exporter's financial entity ("The Bank").

The Bank reviews statements to determine if the Importer meets financial standards for transactions of this size.

If the Importer qualifies according to the Bank's financial standards, the Bank issues a Discussion Term Sheet (or Letter of Interest/LOI) for a Loan to the Importer. The Bank also sends a Fee Letter and Mandate Letter. 

Importer signs the Mandate letters and returns to The Bank along with the Client Information Survey and a portion of the arrangement fee as may be detailed in the proposal.

The Bank processes internal credit approval, and may provide documentation/application to a guarantee entity for consideration and to strengthen their credit position.

Guarantee entity will review the application and process accordingly. At the same time as above, The Bank sends L/C opening documents to the Importer.

The Bank notifies the Importer and commences with legal documentation. 

Legal documents are sent to Importer’s lawyer for review.

Assuming L/C opening documents and legal documents are in place, it is then up to the exporter to prepare the shipment and deliver the relevant shipping documents to The Bank. The importer will also need to have paid the 15% down payment by this time.

The whole process takes 1-6 months. **

**The above assumes that all information is provided in a timely manner and there are no serious difficulties encountered in the process.