First Capital has launched a new pre-delivery guaranty service, the first of a range of new trade finance products to be released over the new month.

This latest solution sees First Capital provide a guaranty of 50% of the foreign exporter’s sales price to the importer up to 60 days before the delivery of goods or services.
If the importer declares bankruptcy during the approved 60-day period before delivery, First Capital will pay 50% of the purchase order amount without first requiring the exporter to resell the goods.

Anthony Brown, international managing director at First Capital explains: “Our pre-delivery guaranty offers foreign exporters the additional pre-shipment credit risk protection they (and their lenders) need while still allowing them to use open account credit terms to increase competitiveness. Foreign exporters and their lenders can rely on First Capital as an alternative source of funds to repay pre-export production loans should the importer become insolvent.”