Protect your business and goods with access to Chase global trade finance tools that mitigate commercial, country, compliance and currency risks associated with cross-border trade. Our solutions help streamline trade flows and keep your operations running smoothly.
A standby letter of credit assures your counterparty in a financial transaction of your ability to meet the financial commitment. We provide our credit on your behalf to give that assurance. We offer a complete range of domestic and international SBLC services on qualifying transactions, including:
- Bid bond/tender bond: Supports your commitment to execute a contract that you've been awarded
- Commercial: Supports your obligation to pay for goods or services, including in the event of nonpayment by other methods; acts as a backstop to a stream of future payment obligations, such as a lease
- Counterparty-guarantee: Supports the issuance of a locally acceptable SBLC or guarantee by a foreign bank, including foreign branches of Chase, in the country of the beneficiary
- Direct pay: Supports payment of an underlying payment obligation when due, typically in connection with a financial instrument without regard to potential default; a municipal bond enhancement is an example
- Financial: Supports your obligation to repay borrowed money, whether a publicly traded security (e.g., commercial paper) or a private placement
- Insurance: Supports your obligations under insurance programs, such as workers' compensation
- Performance: Supports your nonmonetary payment obligations, including covering losses that may arise from your potential default under terms of an existing contract or other commitment
- Warranty: Supports your obligation to provide after-sales service for goods or services delivered
One of your primary objectives as a U.S. exporter is to remain competitive in the ever-changing global marketplace. We frequently participate in guarantee and insurance programs of the Export-Import Bank of the United States, and we can help you expand your international sales, accelerate cash flow and quote more favorable competitive terms to your foreign customers.
The Ex-Im Bank is an independent government agency that facilitates the financing of U.S. exports. Through Ex-Im Bank's working capital guarantee program, Chase can offer the innovative, competitive working capital financing you need.
An export working capital loan allows you to turn your export-related accounts receivable and inventory—including work in process under export contracts—into loan collateral to support your foreign purchase orders. These loans are suitable for manufacturers, wholesalers, engineering and design firms and other service-related industries. You can also use the loan program to support the issuance of standby letters of credit for bid, payment and performance bonds. By having sufficient working capital, you can extend sales terms to your foreign customers for up to 180 days. Chase is a top-ranked Ex-Im Bank lender, and we've achieved Ex-Im Bank's highest level of Delegated Authority Lending status. This allows us to independently commit loans up to an aggregate total of $10 million per exporter.
By utilizing Ex-Im Bank's medium-term insurance and guarantee products, Chase can assist you in providing competitive term financing for your sales of capital equipment and/or related services. For qualifying transactions, we provide loans of up to $10 million to your creditworthy foreign customers. Loan repayment terms typically range from 18 months to five years. Ex-Im Bank provides protection against the foreign buyer's nonpayment due to unforeseen commercial or political events.
To learn more about our trade financing solutions,
please contact us or call your Commercial Banker.