Interlink and RedRidge Finance Announce ExWorks Capital
Interlink Capital Strategies and RedRidge Finance Group announced the capitalization of a new lending joint venture, ExWorks Capital, which will offer export trade financing solutions to underserved U.S. exporters and qualified international buyers using ExIm Bank loan guarantees and insurance.
ExWorks Capital will offer the following services:
Export Trading Company: Many small to medium sized enterprises (SMEs) in the U.S. are uncomfortable conducting business internationally and would prefer to outsource this function to an expert. This new joint venture has the ability to handle procurement, logistics and structuring appropriate trade terms with the foreign buyer. ExWorks Capital can then buy the goods from the U.S.-based SME — ex works — like any domestic customer and take all the risk in selling it to the overseas buyer.
Working Capital Financing to U.S. Exporter: Extend revolving lines of credit or transaction specific loans to U.S. exporters comfortably working internationally to assist them in fulfilling overseas purchase orders and/or extend more aggressive terms to their overseas buyers. These asset based loans will provide for advance rates of up to 75% against export purchase orders (i.e., inventory &mdash raw, WIP, finished goods) and up to 90% against accounts receivable from overseas buyers.
Medium-Term Financing to Overseas Importer: Make loans ranging from two to five years or more to overseas buyers of goods and services from a U.S. exporter. Since the ability to provide financing on capital goods or large transactions is often required to make the sale, the ability to provide this type of financing to the buyer can substantially enhance a U.S. company’s ability to compete globally.
Tim Bridgewater, chairman of Interlink, stated, “In the past 20 years since founding Interlink, we have aggressively worked with our business partners to expand their markets overseas. With this new joint venture with RedRidge, we are now taking a giant step in becoming the premier solution for small and medium-sized businesses to successfully and rapidly expand into international markets.”
RedRidge CEO, Randy Abrahams, observed, “Our firm has seen a rapid increase in its clientele exporting to multinational operations overseas and ExWorks Capital will assist these SMEs in obtaining the necessary working capital to support this growth. RedRidge is confident this is the right time for a dedicated trade finance platform to support U.S. exports, which are on track to significantly increase during this administration.”