EXPORT FINANCING FOR SMALLER-TICKET EQUIPMENT

In response to growing demand from equipment vendors and leasing brokers, Meridian Finance Group is pleased to introduce a pilot program for financing smaller-ticket equipment exports. When your vendors request financing for their creditworthy customers in Latin America; Pacific Rim, and other emerging foreign markets, now you can team up with Meridian to get more of these deals done.

For exports of equipment manufactured in the USA, Meridian has reduced its minimum deal size from $500,000 to $100,000 for selected transactions. Financing is generally in the form of loans rather than leases. Vendors are paid-without recourse-upon shipment and presentation of export documents, while the foreign buyers get three to five years repayment terms at very competitive interest rates.

LOAN FEES & BROKER COMMISSIONS

Upon accepting Meridian's financing quotation, the foreign buyer pays a commitment fee to cover expenses. The commitment fee is refunded to the foreign buyer if financing is not approved as quoted. An arrangement fee is withheld from the disbursement to the vendor when the transaction is funded (otherwise the foreign buyer would also have to pay this fee in advance). Leasing brokers are generally in the best position to negotiate the amount of the arrangement fee with their vendors. As soon as the deal is funded, one-half of the arrangement fee is paid to the leasing broker as commission.

Whether or not the vendor increases its equipment price to absorb the arrangement fee, Meridian requires a signed disbursement agreement up-front from the vendor. Many vendors don't even disclose arrangement fees to the foreign buyers, who are thrilled to get financing on any invoice amount.

WORKING WITH MERIDIAN FINANCE GROUP

The most effective way to present a deal to Meridian is with a copy of the foreign buyer's financial statements and a summary of the transaction (contract amount, equipment description, vendor information, foreign buyer information, anticipated shipment date). If the deal looks doable, Meridian will respond with a financing quotation and a checklist of any additional information required.

Once the financing quotation has been accepted by the foreign buyer and the commitment fee is paid, approval may take up to four weeks. Underwriting, documentation, and funding are handled entirely by Meridian. We work directly with the vendor and the foreign buyer, but please be assured of Meridian's commitment to support leasing brokers' vendor relationships.

Keep in mind that Meridian also offers programs for vendors who regularly export IN, any size of equipment, parts, materials, etc., on shorter (30 to 180 days) credit terms.

12304 Santa Monica Boulevard, Suite 214 Los Angeles, California 90025

Tel 310.442.3600 Fax 310.2072810 info@meridianfinance.com vvww.meridianfinance.com