Corporate & Institutional
Corporate/Institutional
Trade Finance - Financing Programs
Supporting the Import of U.S. Goods and Services

For more than 30 years, PNC Bank, National Association (PNC), has worked together with the Export-Import Bank of the United States (Ex-Im Bank) to support importers, located outside of the U.S., by financing the purchase of machinery, equipment or services from American suppliers.

Ex-Im Bank insures the financing provided by PNC, enabling U.S. companies - large and small - to turn export opportunities into real sales. In turn, overseas importers may benefit from lower financing costs and the ability to establish an international credit history with a U.S. Government agency and PNC, one of the largest financial institutions in the United States.

Consistently ranked as a top user of Ex-Im Bank programs (by number of transactions), PNC has helped hundreds of companies in many countries to meet their financing needs and realize their business goals.

Benefits for You as an Importer/Borrower:

BENEFITS CAN INCLUDE:
  • Competitive interest rates, generally more favorable than those offered by local financing institutions
  • Option of either fixed or variable interest rates
  • Financing extended directly to the importer without the need of a local bank guarantee or letter of credit
  • Financing free of liens on equipment or other assets
  • Semi-annual payments
  • Terms of up to five years
  • Grace periods for installation and setup of equipment
  • No prepayment premiums
ELIGIBLE IMPORTS
  • All types of machinery and equipment, new or used, from U.S. suppliers
  • Some engineering/consulting services associated with goods may also be eligible for financing
  • Examples of the types of goods and services that PNC has recently financed include the following (partial list):
    • Agriculture
    • Banking
    • Broadcasting
    • Chemical / Plastics
    • Construction
    • Food Processing
    • Franchises
    • Heat, Ventilation & Air Conditioning
    • Heavy Equipment Distributors / Leasing
    • Manufacturing
    • Medical
    • Oil and Gas
    • Packaging / Corrugated Boxes
    • Printing
    • Telecommunications / Cable TV
    • Textiles
    • Transportation, including airplanes, trucking
    NOTE: The U.S. content of the goods and services must be at least 50% of the sales agreement.
Key Terms & Conditions
LOAN AMOUNT
  • From U. S. $350,000 and up
  • Amount may include multiple shipments from more than one supplier/exporter
FINANCED AMOUNT
The lesser of the following amounts:
  • 85% of the sales contract
  • 100% of the U. S. content of the sales contract
TERMS
  • Usually five years
  • Up to seven years for special cases
REPAYMENT
Semi-annual installments of principal and interest

INTEREST RATE

  • Option of fixed or variable interest rate
  • Variable rate fluctuates based on six-month LIBOR plus a pre-established and competitive spread
EX-IM BANK RISK PREMIUM
  • Established by the Ex-Im Bank based on the terms and conditions of the loan and the country risk
  • Defined as percentage of loan amount and can be financed as part of the same credit
  • The following shows some examples of risk premiums recently assigned by Ex-Im bank for a five-year credit:
    • Mexico 1.74%
    • Brazil 4.20%
    • Peru 4.59%
    • Dominican Republic 5.98%
    • Colombia 4.20%
PNC FEES
  • Based on size and type of credit
  • Competitive within international standards
Information Required for Your Credit Application
  1. Complete financial information for the last three fiscal years, in English, Spanish or Portuguese, with notes
    • Your company should have reported profits for the last two years
    • The financed amount should not exceed 40% of the net worth of your company
    • If the financed amount exceeds U.S. $1 million, then the financial statements must be audited
  2. Interim financial statements (if the previous fiscal year ended six months prior to credit request)
  3. Description of the project
  4. Two bank and two trade references
OBSERVATION
Please note that actual commitments to grant credit are subject to the approval of both the Ex-Im Bank and PNC. All loan commitments must be in writing and signed by an authorized PNC representative. The loan terms and conditions are subject to change.

Step-By-Step Financing Process
Contact a PNC Trade Finance Officer to discuss your specific credit needs and eligibility. Our team includes native speakers of English, Spanish and Portuguese, who will guide you through the following process:

  1. Submit the required information about your company and your importing needs. If you are eligible, you will receive a detailed, custom-made proposal for your review and approval.
  2. After you have accepted the proposal and remitted initial application fees, our analysts will work with you to complete a credit application, with the assistance of your accounting staff or financial support contact, and submit it to Ex-Im Bank.
  3. Ex-Im Bank will review and make a decision on your application, which typically takes 4 to 6 weeks. Upon Ex-Im Bank's approval, the balance of loan origination and other fees specified in the proposal are paid in full.
  4. PNC will prepare the required loan documents, which must be approved and signed by your company's officers.
  5. After receiving the executed loan documents and a confirmation that you have arranged the down payment directly with the U.S. exporter, the goods can be shipped and the exporter can present shipping documents to PNC for payment.*
  6. Once all steps have been completed, the financed amount will be disbursed. At that time, the credit will be established and the interest period will begin.
*Under certain conditions, PNC can also reimburse the buyer for equipment previously imported and paid for.

About PNC
Anchored by its roots in commercial banking that date back to the 1800s, PNC Bank is a member of The PNC Financial Services Group, Inc., which has evolved into one of the largest diversified financial services organizations in the United States with $90 billion in assets as of 12/31/05.

The PNC Financial Services Group, Inc. provides regional community banking, corporate banking, real estate finance, asset-based lending, wealth management, asset management and global fund services.

PNC is headquartered in Pittsburgh, Pennsylvania. PNC's stock is traded on the New York Stock Exchange under the name PNC Financial Services Group and the ticker symbol "PNC".

For More Information
For more information, please contact one of our Trade Finance Officers - click here for the complete list.

Mailing Address

PNC Bank, N.A.
Two PNC Plaza - 32nd Floor
620 Liberty Avenue
Pittsburgh, PA 15265
USA
Fax: 412-762-5022
Trade Finance Group Manager: 412-762-2585 or 412-762-2083
English: 877-PNC-IDEA (877-762-4332)
Spanish: 866-HOLA-PNC (866-465-2762)