Protect your business and goods with access to Chase's 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.
Standby Letters of Credit
A Standby Letter of Credit (SBLC) assures your counterparty in a financial transaction of your ability to meet the financial commitment. Chase will provide our credit on your behalf to give that assurance. We offer a complete range of domestic and international SBLC services to help you meet the unique agreements between you and your contract counterparties on qualifying transactions, including:
- Bid Bond/Tender Bond – Supports your commitment to execute a contract that you have 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 when due, of an underlying payment obligation, 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 worker’s compensation.
- Performance – Supports your non-monetary payment obligations, including covering losses arising 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.
Ex-Im Bank Financing
As a U.S. exporter, one of your primary objectives is to remain competitive in the ever-changing global marketplace. Chase is uniquely positioned to provide you with financing solutions. As a frequent participant in guarantee and insurance programs of the Export-Import Bank of the United States (Ex-Im Bank), we can help you expand your international sales, accelerate cash flow and quote more favorable competitive terms to your foreign customers.
Ex-Im Bank Working Capital Guarantee Program
The Ex-Im Bank is an independent government agency established to facilitate the financing of U.S. exports. Through Ex-Im Bank’s working capital guarantee program, Chase can offer innovative, competitive working capital financing needed to help increase your international sales.
If you are a manufacturer, wholesaler, engineering or design firm, or any other service-related industry enterprise, 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. The loan program can also be used to support the issuance of standby letters of credit for bid, payment and performance bonds. By having sufficient working capital, you are able to extend sales terms to your foreign customers up to 180 days. Chase is a top-ranked Ex-Im Bank lender and has achieved the highest level of Delegated Authority Lending status provided by Ex-Im Bank, allowing us to independently commit loans up to an aggregate total of $10 million per exporter.
Ex-Im Bank Medium-Term Insurance and Guarantee Programs
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 credit worthy foreign customers. Loan repayment terms typically range from 18 months to five years. Ex-Im Bank provides protection against nonpayment by the foreign buyer due to unforeseen commercial or political events.
To learn more about Chase’s trade financing solutions and how we can help you, please e-mail us or contact your local commercial banker.