NB|AZ® offers a wide range of global trade services to assist our clients in meeting these challenges and mitigating the associated risks. We provide access to experienced trade specialists, smart financial solutions for leveraging global opportunities and an organization dedicated to serving companies of all sizes.
EXIM Bank Programs - These government-sponsored credit support programs can help extend your reach with capital to begin exporting or even expand your sales internationally.
Exporters often need access to working capital to begin exporting or expand internationally. As an EXIM Bank (Export-Import Bank of the United States) designated Delegated Authority lender, NB|AZ can approve working capital guarantee loans[cite::10::cite] to help you fulfill your export orders of goods or services. We have been recognized for Excellence in EXIM Bank Lending and have a Delegated Authority limit of $10mm and have Fast Track Lending status up to $25mm. EXIM Bank provides a 90% guarantee on working capital loans made by lenders.
EXIM Bank’s pre-export working capital financing is suitable for manufacturers, wholesalers and distributors. Our experienced International Trade Finance specialists can help qualify your loan and get it approved internally.
Use of Proceeds:
- Purchases of inventory (raw materials, work in progress and finished goods)
- Pay for costs (related to design, engineering, labor and overhead) to manufacture goods or services for export
- Finance foreign accounts receivables
- Supports Standby Letters of Credit used as payment guarantees, bid or performance bonds with reduced collateralization
- Helps indirect exports
EXIM Bank Medium Term Loan Guarantee Program - The medium-term loan program provides your foreign buyers of U.S. capital goods and services with extended credit terms. The EXIM Bank assists foreign buyers by guaranteeing term loans made through commercial lenders such as NB|AZ.
Benefits to U.S. Exporters:
- Allows foreign buyers to receive financing to purchase your U.S. capital goods or services
- Reduces your non-payment risk to emerging market buyers
- Secures longer-term financing to foreign buyers, allowing you to compete in international markets
- Increases your cash flow and export sales
Benefits to Foreign Buyers:
· Access to financing from U.S. commercial lenders at more attractive interest rates than in local markets
· Acquiring financing under favorable conditions not normally available
Trade Payables Finance - When you need to finance your inventory purchase and conserve cash, we can pay your supplier directly or reimburse you for payments you have already made.
- Trade Payables Finance (TPF) is a lending solution that is ideally tailored to companies that purchase products overseas. Instead of financing a moveable level of inventory, TPF focuses on a specific transaction and the financing challenges that can arise, such as enabling a company to finance seasonal peaks of inventory, longer inventory turnover, work-in-process, larger orders that require special financing, or periods when a large inventory build-up is required. Our TPF program can also enable a borrower to take advantage of supplier discounts. It’s adaptable for domestic purchases, and it can be used in conjunction with a letter of credit or an open account purchase.
Export Letters of Credit - Streamline complex negotiations and transactions with a Letter of Credit through which we serve as a Guarantor for your business’ domestic or international projects.
- Standby Letters of Credit
A Standby Letter of Credit represents an obligation of NB|AZ to the beneficiary of the Letter of Credit. The expectation is that the underlying contract or transaction between the applicant and the beneficiary will be completed as agreed and the Standby Letter of Credit will not be drawn. In the opposite, if the applicant of the Letter of Credit fails to perform, the beneficiary is entitled to draw and National Bank of Arizona, as the guarantor of the applicant, is obligated to pay under the Letter of Credit.
A Standby Letter of Credit can be used for many purposes, including bid bonds, performance bonds, or to support loans or unpaid invoices made on open account purchases – with NB|AZ serving as a Guarantor in your domestic or international projects, or transactions.
Our International Banking Group offers seasoned professional expertise in setting up even the most complex letters of credit – and will work with you to protect your interests by assuring that proper terminology and safeguards are included and that the terms of the Letter of Credit reflect the negotiations of all parties.
- Import Letters of Credit
Essential for any business that purchases goods from overseas, the Import Letter of Credit helps to expedite international trade transactions and assures that sellers will be paid securely. Import Letter of Credit is a conditional undertaking of payment for your account. It assures that your seller will be paid only after they have fulfilled all their shipment and documentary obligations. The seller benefits by the assurance that we will pay them once they have presented the required documents and complied with the terms of the Letter of Credit.
We can help structure your Letters of Credit to match the terms you have negotiated with your vendor and made payable in U.S. dollars or a foreign currency. Payment can be made upon presentation of documents specified in the Letter of Credit (sight) or at a future date after the documents have been presented (usance or deferred).
- Export Letters of Credit
Essential for any business that sells goods to overseas, Export Letter of Credit helps to expedite international transactions and assures that sellers will be paid securely. The Export Letter of Credit is mostly issued by a foreign bank, the bank of the firm which is buying your goods and services. That bank commits to pay you, the seller, when you have complied with the documentary terms identified in the Letter of Credit.
If you’re the beneficiary of an Export Letter of Credit, we will assist you in complying with the Letter of Credit terms so you will be paid in full within the agreed time limit. Our seasoned international banking specialists will guide you through the process, help you in preparing the required documents correctly in order for you to receive the prompt payment quickly as that’s crucial to your cash flow.
- Documentary Collections
If you export goods and services, let our bankers serve as an intermediary between you and your trading partners through our Documentary Collection services. With this method of payment, we work on behalf of you, the exporter, presenting collection items through the buyer's bank for payment by your customer (the buyer). The collecting bank will not release your documents to the buyer until the payment is made for (D/P) or the Draft is accepted by the customer (the buyer).
We provide documentary collection services (and "clean" collections, drafts without documents) through two of the most common types of collections:
- Documents Against Payment (D/P): the importer/buyer must pay before they can obtain the shipping documents.
- Documents Against Acceptance (D/A): the buyer must accept a usance (time) draft before receiving the shipping documents. Acceptance of the draft is the importer's promise to pay at maturity.
Documentary collections should be used in situations where there is a trust relationship between buyer and seller. Under Documentary Collections, banks act as intermediaries between buyer and seller in exchange for title documents and payment. There is no payment guarantee or bank obligation to pay as with a Letter of Credit.